DGAP-News: Gesco AG / Key word(s): Annual Results/Annual Results
In financial year 2018/2019, which encompasses the operating months January to December 2018 in the case of the subsidiaries, GESCO Group was able to translate the continued positive market environment in the capital goods industry into brisk business activity, grew faster than the market and achieved record values for incoming orders, sales and earnings. Sommer & Strassburger GmbH & Co. KG, which was acquired in August 2018, was included in the consolidated income statement on a pro rata basis for a period of four months and is allocated to the Production Process Technology segment. All told, GESCO Group increased its incoming orders by 7.8 % from EUR 552.4 million to EUR 595.2 million. Group sales exceeded the previous-year figure of EUR 547.2 million by 5.0 %, reaching EUR 574.5 million. Earnings increased in all segments. As in the previous year, earnings in the Resource Technology segment benefited considerably from a favourable economic environment due to strong demand and rising material prices. Overall, earnings before interest and taxes (EBIT) rose more strongly than sales, increasing by 41.0 % from EUR 33.8 million to EUR 47.6 million. Group net income after minority interest grew by 65.2 % to EUR 26.6 million. The previous year's figure of EUR 16.1 million included a one-off expense of EUR 7.5 million for a fine. The German Financial Reporting Enforcement Panel (FREP) has conducted a random audit of the financial statements for financial year 2017/2018. At the end of May, the FREP informed GESCO AG that it had found the consolidated financial statements to be deficient, as the reporting dates of GESCO AG deviate from the reporting dates of the subsidiaries by three months without there being any clear reasons why the same reporting dates cannot be used. It will be proposed to the Annual General Meeting on 29 August 2019 that the financial year of GESCO AG be adjusted to match the calendar year so as to synchronise the reporting dates. GESCO AG will therefore report an abbreviated financial year running from 1 April to 31 December 2019, resulting in the operating subsidiaries of the GESCO Group entering financial year 2019 with a full calendar year, with GESCO AG only reporting nine months. The general economic conditions for the new financial year have deteriorated noticeably. The German Mechanical Engineering Industry Association (VDMA) halved its production growth forecast for 2019 from 2 % to 1 % at Hannover Messe. GESCO Group currently sees stable development for the most part, whereas the automotive sector faces a very difficult environment. All told, the Executive Board expects Group sales to increase slightly to between EUR 585 million and EUR 605 million. Margins will normalise due to the absence of the favourable environment in Resource Technology. The company also expects a decline in earnings in Mobility Technology. Overall, GESCO anticipates Group net income after minority interest of between EUR 22.5 million and EUR 24.5 million. The forecasts refer to the abbreviated financial year of only nine months for GESCO AG. Based on a full financial year for GESCO AG, the company expects to see Group net income after minority interest of between EUR 21 million and EUR 23 million. The first quarter of the new financial year, which encmpasses the operating months January to March 2019 of the subsidiaries, saw stable demand. According to preliminary figures, incoming orders stood at around EUR 156 million with sales of around EUR 147 million. These figures were higher than the previous year's figures thanks to the addition of Sommer & Strassburger; in organic terms, they were on par with the previous year. However, earnings for the first quarter will be significantly lower than in the previous year for the aforementioned reasons. During the annual accounts press conference, the company also presents details on its NEXT LEVEL strategy. The strategy marks a new chapter in GESCO's development in its 30th year of existence. The strategy calls for a more balanced and resilient target portfolio with three major core investments and a series of base investments. In addition, excellence programmes will be launched to promote the growth of the Group's companies and increase their efficiency with the aim of transforming them into hidden champions. As a result, the companies' earnings should grow 3 % faster than their respective markets and their sales per employee should increase by 3 % a year. GESCO envisions a target EBIT margin of 8 % to 10 % throughout the economic cycle. The programmes are being rolled out, and the first workshops have already started. The complete Annual Report is available at www.gesco.de.
About GESCO
27.06.2019 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: | info@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 |
EQS News ID: | 830895 |
End of News | DGAP News Service |