DGAP-Ad-hoc: GESCO raises its operating outlook for 2017/2018 and recognizes expenses from antitrust proceedings

Gesco AG / Key word(s): Forecast/Forecast
GESCO raises its operating outlook for 2017/2018 and recognizes expenses from antitrust proceedings

04-May-2018 / 13:36 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Wuppertal, 04.05.2018 - For the 2017/2018 financial year (1 April 2017 to 31 March 2018), GESCO AG had recently forecast operating Group net income after minority interest of EUR 20 million to EUR 21 million; possible effects from the ongoing antitrust proceedings against Dörrenberg Edelstahl GmbH, a 90% subsidiary of GESCO AG, were not yet included. GESCO AG is raising this operating outlook now to around EUR 23.5 million. In addition, on the basis of an offer submitted to Dörrenberg Edelstahl GmbH to terminate the antitrust proceedings (so-called settlement) in return for a fine of EUR 8.5 million, the Executive Board decided to set up a provision corresponding to this amount in the 2017/2018 consolidated financial statements. Resolutions of the competent bodies on the acceptance of the settlement offer are still pending. The outlook for Group net income after minority interest, including the effects of the antitrust proceedings, now amounts to around EUR 16 million (previous year EUR 7.8 million).

The key figure "Group net income after minority interest" is used as in the consolidated financial statements of GESCO AG as of 31 March 2017, available on the Internet at http://www.gesco.de/reports.
 

Contact:

Head of Investor Relations, Oliver Vollbrecht
Tel. +49-202 24820-18
Fax +49-202 24820-49
E-Mail: info@gesco.de
Internet: www.gesco.de

Information and Explanation of the Issuer to this News:

In the report for the nine-month period in February 2018, GESCO AG had pointed out that the outlook for operating Group net income after minority interest of EUR 20 million to EUR 21 million did not include possible effects from the ongoing antitrust proceedings against Dörrenberg Edelstahl GmbH.
 
In the course of the preparation of the consolidated financial statements for 2017/2018, it now becomes apparent that some expected burdens on earnings did not materialize and that positive earnings contributions were higher than expected. These smaller effects, each of which has a smaller impact, mean in total that GESCO AG raises its outlook for operating Group net income after minority interest for the 2017/2018 financial year to around EUR 23.5 million.
 
In addition, on the basis of an offer submitted to Dörrenberg Edelstahl GmbH to terminate the antitrust proceedings (so-called settlement) in return for a fine of EUR 8.5 million, the Executive Board decided to set up a provision corresponding to this amount in the 2017/2018 consolidated financial statements. The impact on Group net income after minority interest amounts to approximately EUR 7.5 million.
 
Taking into account the increase in the operating outlook and the provision for the antitrust proceedings, the outlook for Group net income after minority interest for the 2017/2018 financial year now amounts to approximately EUR 16.0 million (previous year EUR 7.8 million).
 
The outlook for Group sales of the financial year 2017/2018 from February 2018 of around EUR 545 million (previous year EUR 482.5 million) remains unchanged.
 
 
About GESCO
GESCO AG is an industrial group made up of market and technology leading companies in the capital goods industry. Its focus is 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
Tel. +49 (0) 202 24820-18 - Fax +49 (0) 202 24820-49
E-mail: info@gesco.de - Website: www.gesco.de
 
 
 

04-May-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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