DGAP-News: Gesco AG / Key word(s): Quarterly / Interim Statement/9-month figures
- Significant incoming orders and sales growth - Disproportionately high increase in earnings - Operating outlook for financial year raised - Effects of antitrust proceedings against a subsidiary not yet quantifiable Wuppertal, 14 February 2018 - Following a dynamic first half of the financial year, the GESCO Group also generated brisk business in the third quarter of the current financial year (2017/2018). Incoming orders and sales increased significantly in the first nine months of the financial year, and there was a disproportionate rise in earnings. Preliminary figures indicate that incoming orders and sales also remained at a high level in the following fourth quarter. In view of this positive development, the company has raised its outlook for the full year. The first nine months of the financial year at the GESCO Group encompass the months April to December 2017 for GESCO AG and January to September 2017 for its subsidiaries. In that period, incoming orders increased by 8.4 % to EUR 407.9 million (previous year's period: EUR 376.4 million); sales rose by 13.1 % to EUR 404.4 million (EUR 357.5 million). EBIT grew from EUR 19.9 million to EUR 31.5 million, which represents an increase of 57.7 %. Group net income after minority interest climbed by a total of 68.2 % to EUR 16.4 million (EUR 9.7 million). The increase in earnings and depreciation resulted in a year-on-year rise in cash flow for the period of 37.0 % to EUR 36.5 million (EUR 26.7 million). Due to the growth in current assets resulting from brisk operating business, cash flow from ongoing business activities decreased to EUR 21.2 million (EUR 30.7 million). Three out of four segments recorded a rise in incoming orders, sales and earnings over the reporting period. The Production Process Technology segment benefited from the trend towards automation, the Resource Technology segment achieved disproportionate growth, partly as a result of the newly acquired Pickhardt & Gerlach Group, and the Healthcare and Infrastructure Technology segment profited from the positive development of mass consumer markets. Meanwhile, the Mobility Technology segment lagged behind the other segments significantly, and reported decreases in sales and earnings. That segment included Protomaster GmbH, which was sold on 7 December 2017. According to preliminary figures, in the fourth quarter, which encompasses the operating months October to December 2017 of the Group's subsidiaries, incoming orders at the Group came to roughly EUR 144 million, a significant increase of some 17 % on the previous year's figure, EUR 122.4 million. The preliminary figures show that sales in the fourth quarter also totalled approximately EUR 144 million, an increase of around 15 % on the previous year's period (EUR 124.9 million). Those strong sales are partly due to the large number of machines and plants delivered in the fourth quarter. Overall, incoming orders thereby continued at approximately the exceptionally high level seen in the first quarter and sales exceeded their record level in the third quarter. The Group's most recent outlook for the full year was at the upper end of the range previously communicated, with Group sales of EUR 530 million and Group net income after minority interest of EUR 18 million. Considering the positive economic development, GESCO has now increased the outlook for the full financial year 2017/2018. It now expects sales of approximately EUR 545 million and Group net income after minority interest of between EUR 20 million and EUR 21 million. The possible impact on earnings of the antitrust proceedings against Dörrenberg Edelstahl GmbH, which the company provided information about in its ad hoc announcement dated 12 December 2017, is not taken into account in those figures, as it cannot be reliably determined or estimated based on the currently available information. GESCO's Chairman of the Executive Board, Dr Eric Bernhard: "We are pleased that, along with an improved market environment in the current financial year, the 'relaunch' initiated by GESCO Portfolio Strategy 2022 is increasingly reflected in our figures. The positive dynamic has now spread to the majority of the GESCO portfolio. Based on the strong performance of our operational business, we could now increase the outlook for the year as a whole in terms of sales and particularly with regard to earnings." The full quarterly statement is available at www.gesco.de/reports.
About GESCO Investor Relations Oliver Vollbrecht
14.02.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Gesco AG |
Johannisberg 7 | |
42103 Wuppertal | |
Germany | |
Phone: | +49 (0)202 248200 |
Fax: | +49 (0)202 2482049 |
E-mail: | gesco@gesco.de |
Internet: | www.gesco.de |
ISIN: | DE000A1K0201 |
WKN: | A1K020 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
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