GESCO reports on the first six months of the nine-month abbreviated financial year 2019


DGAP-News: Gesco AG / Key word(s): Half Year Results/Half Year Results
25.11.2019 / 07:30
The issuer is solely responsible for the content of this announcement.

  • Annual General Meeting votes to change financial year to calendar year
  • Economic slowdown leads to drop in demand
  • Earnings down significantly
  • Outlook for full abbreviated financial year reduced
  • NEXT LEVEL strategy being implemented

Wuppertal, 25 November 2019 - This year's Annual General Meeting of GESCO AG, a Prime Standard-listed company, voted to change the financial year - which had so far run from 1 April until 31 March - to the calendar year. The previous year's figures have been adjusted accordingly. The current financial year 2019 is therefore a nine-month abbreviated financial year that ends on 31 December 2019. Accordingly, the half-year interim report includes the months April to September 2019. The climate in the capital goods industry deteriorated increasingly during this time. Furthermore, the automotive sector continues to be impacted by a high degree of uncertainty and a tremendous reluctance to invest.

GESCO Group has been unable to escape these conditions. The extraordinarily difficult environment in the automotive sector is having a negative impact on the Mobility Technology segment in particular and on the companies of the Production Process Technology segment that provide capital goods for the automotive and supply industry. The decline in the capital goods industry is making itself felt in the Resource Technology segment, which is having an even more noticeable impact on earnings because the previous year was still characterised by special economic effects with above-average margins. By contrast, the Healthcare and Infrastructure Technology segment has been comparatively resilient on the whole.

Total incoming orders stood at EUR 280.2 million in the first six months of the financial year and were therefore down 8.5 % from the adjusted previous year's figure of EUR 306.2 million. The decline was particularly tangible in those areas that are influenced by the automotive and supply industry, especially in the Mobility Technology segment and in Production Process Technology. At EUR 290.8 million, on the other hand, sales were up by 2.5 % on the previous year's figure of EUR 283.8 million. They increased significantly in the Production Process Technology segment. The Healthcare and Infrastructure Technology segment also recorded growth.

Earnings came under pressure compared to the figures seen in the previous year, which was largely due to the lapsing of special economic effects in the Resource Technology segment. Moreover, Mobility Technology operated in a difficult environment that further deteriorated over the course of the financial year. Earnings before interest and taxes (EBIT) stood at EUR 15.4 million in total (previous year: EUR 22.3 million). Group net income after minority interest reached EUR 8.2 million (EUR 12.1 million), which corresponds to earnings per share pursuant to IFRS of EUR 0.75 (EUR 1.12).

On 4 November, GESCO reduced the outlook for the full nine-month abbreviated financial year. GESCO forecast Group sales of EUR 425 million to EUR 435 million and Group net income after minority interest of between EUR 11.5 million and EUR 13 million.

Kerstin Müller-Kirchhofs (CFO): "We are currently operating in a challenging environment. In light of the weaker business activity in mechanical engineering and plant construction, as well as in the automotive industry, we have taken a critical look at the planned investments, postponed certain measures or cancelled them altogether at the companies affected. However, we continue making countercyclical investments in growth in those areas where we see clear prospects in the medium term. We have adjusted temporary employment agreements and have temporarily introduced short-time working at some subsidiaries. At those companies that have been affected by a noticeably longer decline in demand, we are currently reducing the workforce - but are doing so without endangering long-term competitiveness. If possible, companies with underutilised capacities support those sister companies with full order books, for example in design or assembly. We believe that this approach presents us with a good opportunity to keep expertise within the Group."

Ralph Rumberg (CEO): "Regardless of the current economic situation, we are hard at work on the implementation of the NEXT LEVEL strategy. We have held further workshops on business model analysis, strengthening operative excellence and active brand and product portfolio development at several subsidiaries in recent months. Initial concrete measures have been derived and are being implemented. We are convinced that NEXT LEVEL will set the course for better results and stronger growth."

The full half-year interim report is available under

GESCO Group key figures for the first six months (1 April to 30 Sept. 2019)
of abbreviated financial year 2019 pursuant to IFRS:

  1st half
1st half year
Incoming orders(EUR '000)280,228306,179-8.5%
Sales(EUR '000)290,826283,757+2.5%
EBITDA(EUR '000)28,96133,948-14.7%
EBIT(EUR '000)15,36222,276-31.0%
Earnings before tax(EUR '000)13,73221,198-35.2%
Group net income
after minority interest
(EUR '000)8,16112,111-32.6%
Earnings per share pursuant to IFRS(EUR)0.751.12-32.6%

GESCO AG is an industrial group made up of market and technology leading companies in the capital goods industry with a focus on production process technology, resource technology, healthcare and infrastructure technology and mobility technology. As a stock company listed in the Prime Standard, GESCO AG offers private and institutional investors access to a portfolio of hidden champions among Germany's industrial SMEs.

Investor Relations - Oliver Vollbrecht
Phone: +49 (0)202 24820-18 - Fax: +49 (0)202 24820-49
E-mail: - Website:


25.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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