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GEA Group AG
Earnings Release • Jul 26, 2017
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Earnings Release
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Corporate | 26 July 2017 07:30
GEA Group Aktiengesellschaft: GEA announces figures for the second quarter
DGAP-News: GEA Group Aktiengesellschaft / Key word(s): Quarterly / Interim Statement/Half Year Results
26.07.2017 / 07:30
The issuer is solely responsible for the content of this announcement.
GEA announces figures for the second quarter
Düsseldorf (Germany), July 26, 2017 – GEA’s order intake of EUR 1,241 million set a new high for the second quarter of a financial year. Year-on-year growth of around 1.6 percent was primarily due to an increase in large orders: Between April and June, GEA secured five major orders worth around EUR 136 million in total. The biggest project was an order from the Canadian beverages industry, but GEA managed to secure two major orders from the coffee sector and one project each in the dairy and pharma sectors. With regard to the company’s customer industries, the main growth drivers in order intake were the food, dairy farming, and pharma/chemical sectors.
On the revenue side, however, the company registered a slight decline. At EUR 1,138.5 million, second quarter revenue was 1.6 percent down on the previous year. Despite revenue gains in the areas of dairy processing and food, declining volumes in the pharma/chemical and oil/gas customer industries in particular conspired to weaken the overall revenue picture at GEA. In regional terms, North America and Western Europe, Middle East & Africa all posted growth in revenue.
Thanks to selective optimization measures initiated in the last three months, GEA managed to reduce its working capital significantly by more than EUR 50 million to EUR 706 million.
Operating EBITDA in the second quarter of the year was about EUR 23 million below the previous year’s level. This decline was largely due to the Business Area Solutions, where mainly volume and margin mix effects had a negative impact on earnings. By contrast, the Business Area Equipment managed to increase its operating EBITDA and the corresponding margin, thanks largely to gratifying growth in revenue.
“We did not reach all our targets and, as a result, we’ve had to adjust our earnings forecast for the 2017 financial year,” said Jürg Oleas, Chairman of the Executive Board of GEA. “But the good order intake figures and major orders from various customer industries show that our broad-based portfolio is paying off and harbors future growth potential.”
IFRS key figures of GEA
| (EUR million) | Q2 2017 | Q2 2016 |
| Order intake | 1,241.1 | 1,222.1 |
| Revenue | 1,138.5 | 1,156.9 |
| Operating EBITDA 1 | 122.4 | 145.2 |
| as % of revenue | 10.8 | 12.6 |
| Operating EBIT 1 | 101.9 | 125.2 |
| as % of revenue | 8.9 | 10.8 |
| EBIT | 78.7 | 108.2 |
| Working capital intensity in % (average of the last 12 months) | 16.1 | 13.2 |
| Net liquidity (+)/Net debt (-) | 343.7 | 613.8 |
| Operating cash flow driver margin 2 | 7.0 | 11.1 |
| ROCE in % (goodwill adjusted) 3 | 15.1 | 19.7 |
| Full-time equivalents (reporting date) | 17,093 | 17,153 |
| Earnings per share (EUR) | 0.29 | 0.43 |
1) Before effects of purchase price allocations and adjustments
2) Operating cash flow driver = operating EBITDA – capital expenditure + adjustment of capital expenditure in strategic projects – change in working capital (average of the last 12 months)
3) Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999 (average of the last 12 months)
Corporate Media and Press
Marc Pönitz
Peter-Müller-Str. 12, 40468 Düsseldorf, Germany
Phone +49 (0)211 9136-1500
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 4.5 billion in 2016. The international technology group focuses on process technology and components 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 June 30, 2017, the company employed about 17,000 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
26.07.2017 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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| Language: | 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: | [email protected] |
| 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 |