GESCO confirms outlook for full year following strong first nine months
- Brisk demand in the first nine months of the financial year, incoming orders show strong growth - Sales up, earnings increase disproportionately - Incoming orders down in fourth quarter, sales up - Outlook for full year confirmed - Subsidiaries advance internationalisation
Wuppertal, 14 February 2019 - Following a dynamic first half of the year, GESCO Group continued to see brisk demand in the third quarter of financial year 2018/2019. Incoming orders saw a double-digit increase in the first nine months of the financial year. Sales also rose, and key earnings figures increased at a disproportionately high rate. The vast majority of companies were able to generate growth; three out of four segments posted an increase in incoming orders, sales and earnings. Sommer & Strassburger GmbH & Co. KG was rapidly integrated into the reporting structure and processes of GESCO Group over the past few months following its acquisition in August.
The first nine months of the financial year at GESCO Group encompass the months April to December 2018 for GESCO AG and January to September 2018 for its subsidiaries. In this period, incoming orders posted strong growth of 11.9 % to reach EUR 456.6 million (previous year's period: EUR 407.9 million). Sales rose by 5.0 % from EUR 404.4 million to EUR 424.6 million. EBIT rose by 13.7 % to EUR 35.8 million (EUR 31.5 million), and Group net income after minority interest stood at EUR 19.7 million, which corresponds to an increase of 20.4 % compared to the previous year's figure of EUR 16.4 million.
In the subsequent fourth quarter, which encompasses the subsidiaries' operating months October to December 2018, Group incoming orders stood at around EUR 135 million, according to preliminary figures. The previous year's value of EUR 144.5 million also contained a major order of around EUR 10 million. According to preliminary figures, Group sales stood at around EUR 145 million in the fourth quarter (EUR 142.8 million).
In the half-year interim report in November 2018, the company forecasted sales of slightly over EUR 560 million in organic terms and inorganic growth of around EUR 6.5 million as a result of the first-time pro rata inclusion of Sommer & Strassburger. GESCO currently expects to see Group sales of around EUR 570 million in total. With regard to Group net income after minority interest, the company forecasted a figure of EUR 26 million or slightly less in organic terms and a negative effect of around EUR 0.5 million due to the acquisition of Sommer & Strassburger. Based on the information available at the present time, the Executive Board confirms this outlook.
Ralph Rumberg, CEO of GESCO AG: "Demand remained steady in the third quarter. As a result, we can look back on a generally strong first nine months of the financial year with brisk business. In a challenging business environment, people pay a lot of attention to incoming orders. They were down year on year in the subsequent fourth quarter, but that was mainly due to a major order in the previous year. We therefore do not see the decline in incoming orders in the fourth quarter as an indication of a sustained economic slowdown. Economic sentiment deteriorated in the final months of 2018. With regard to the actual situation, however, we stand by the statement made at the end of the first half of the year: we do not currently see any specific signs of a significant decline in our operating business on a wider scale. We have confirmed the outlook for the current financial year."
Rumberg: "GESCO Group is well positioned to take on a variety of economic scenarios. While we cannot influence the general economic conditions, we can influence the Group's long-term focus. Regardless of short-term fluctuations in economic development, some of our Group companies have continued advancing their internationalisation in recent months and have either founded or expanded subsidiaries in countries like Russia, Mexico and the US. We are taking such steps to strengthen the respective companies' position and expand international business while broadening the basis for future growth."
The complete quarterly statement is available at www.gesco.de/reports. GESCO Group key figures for the first nine months (1 April to 31 December 2018) of financial year 2018/2019 in accordance with IFRS:
I-IIIQuarter 2018/2019 I-III Quarter 2017/2018 Change Incoming orders (EUR '000) 456,592 407,911 +11.9% Sales (EUR '000) 424,582 404,350 +5.0% EBITDA (EUR '000) 53,058 49,449 +7.3% EBIT (EUR '000) 35,756 31,458 +13.7% Earnings before tax (EUR '000) 34,136 29,915 +14.1% Group net income after minority interest (EUR '000) 19,701 16,357 +20.4% Earnings per share acc. to IFRS (EUR) 1.82 1.51 +20.4% Employees (No.) 2,669 2,482 +7.5%
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: firstname.lastname@example.org ( Website: www.gesco.deContact: Head of Investor Relations, Oliver Vollbrecht Tel. +49-202 24820-18 Fax +49-202 24820-49 E-Mail: email@example.com Internet: www.gesco.de
14.02.2019 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.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Gesco AG Johannisberg 7 42103 Wuppertal
Germany Phone: +49 (0)202 248200 Fax: +49 (0)202 2482049 E-mail: firstname.lastname@example.org 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 End of News DGAP News Service