GEA Group Aktiengesellschaft: GEA releases preliminary first quarter 2018 results
GEA releases preliminary first quarter 2018 results
Düsseldorf, April 12, 2018 - GEA Group Aktiengesellschaft has announced preliminary first quarter 2018 results while simultaneously confirming its business outlook for the year 2018. Order intake is expected to amount to approximately EUR 1,100 million (previous year EUR 1,136 million). In this context, adverse currency effects total just under EUR 60 million. Group revenue is likely to rise to around EUR 1,035 million (previous year EUR 1,004 million). Adverse currency effects add up to approximately EUR 50 million. Operating EBITDA is expected to amount to approximately EUR 65 million (previous year EUR 96 million). Following increased order intake levels in the months of January and February, the Business Area Solutions has seen a rather subdued order intake in March. Moreover, the sales volume generated by this Business Area in March is approximately EUR 30 million down compared to previous year. While the disappointing relative gross margin achieved by the Business Area Solutions in January and February - notably in the American companies - has gone up in March, it is still lagging behind previous year's level. In the first quarter, the Business Area Equipment has witnessed a more than 10 percent overall organic growth in order intake with all product groups contributing to this development. On the other hand, the earnings increase of this Business Area due to volume growth was unable to fully offset the currency-related disadvantages and adverse product mix effects, in particular in the USA. "We confirm our business outlook for the year 2018. This assessment is based on our solid order backlog as well as the measures already initiated. Apart from focusing our attention more strongly on the product mix, we have already launched initiatives designed to enhance earnings contributions in North America. Furthermore, we will continue to consistently exert cost discipline throughout the current fiscal year. In a challenging environment, the second quarter's order intake will also be essential for achieving our business outlook," explained Jürg Oleas, CEO of GEA Group Aktiengesellschaft. GEA will release its final first quarter 2018 results on May 4, 2018.
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About GEA GEA is one of the largest suppliers for the food processing industry and a wide range of other industries that generated consolidated revenues of approximately EUR 4.6 billion in 2017. The international technology group focuses on process technology, components and sustainable energy solutions for sophisticated production processes in various end-user markets. The group generates around 70 percent of its revenue in the food and beverages sector that enjoys long-term sustainable growth. As of December 31, 2017, the company employed about 18,000 people worldwide. GEA is a market and technology leader in its business areas. The company is listed on the German MDAX (G1A, WKN 660 200). In addition, GEA's stock is included in the MSCI Global Sustainability Indexes. Further information is available on the Internet at gea.com.Contact: GEA Group Aktiengesellschaft Phone +49 (0)211 9136 1492 Fax +49 (0)211 9136 31087 gea.com
12.04.2018 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.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: GEA Group Aktiengesellschaft Peter-Müller-Straße 12 40468 Düsseldorf
Germany Phone: +49 (0)211 9136-0 Fax: +49 (0)211 9136-31087 E-mail: firstname.lastname@example.org Internet: www.gea.com ISIN: DE0006602006 WKN: 660200 Indices: MDAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Munich; Regulated Unofficial Market in Hanover, Stuttgart, Tradegate Exchange End of News DGAP News Service