Earnings Release • Jul 28, 2014
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Corporate | 28 July 2014 07:30
GEA Group Aktiengesellschaft: GEA Increases Operating EBITDA Margin to 11.5 Percent (news with additional features)
GEA Group Aktiengesellschaft / Key word(s): Quarter Results
28.07.2014 / 07:30
GEA Increases Operating EBITDA Margin to 11.5 Percent
– Order intake of EUR 1,170 million in Q2 beats consensus
– Second quarter organic revenue up 8 percent year-on-year
– Q2 earnings per share up 7 percent year-on-year
– Moody’s Investors Service lifts rating to Baa2 with stable outlook
Dusseldorf, July 28, 2014 – GEA closed the second quarter of 2014 on a positive note. The GEA Farm Technologies and GEA Refrigeration Technologies segments in particular saw encouraging growth. At EUR 1,170 million, the company’s order intake adjusted for currency translation effects again almost reached the all-time highs seen in the prior-year quarter. This places GEA’s order intake at the upper end of expectations.
In the second quarter of 2014, the revenue generated by GEA’s continuing operations increased by 5.0 percent to EUR 1,118 million (previous year: EUR 1,065 million). Exchange rate movements reduced revenue by 3.0 percent. In the first half of 2014, revenue amounted to EUR 2,068 million (previous year: EUR 1,989 million). This corresponds to organic growth of 7.0 percent.
The group’s operating EBITDA in the second quarter rose to EUR 128 million, up EUR 10 million (8.1 percent) year-on-year. The operating EBITDA margin saw further improvement to 11.5 percent of revenue. The company’s operating EBITDA in the first six months of the year increased by EUR 22 million to EUR 213 million. At 10.3 percent, the operating EBITDA margin was up 71 basis points year-on-year.
Consolidated profit amounted to EUR 81 million in the second quarter, a 7.2 percent increase year-on-year. This corresponds to earnings per share of EUR 0.42 for the period (previous year: EUR 0.39).
“In 2014, GEA generated its highest ever operating EBITDA for a first half-year period. This applies in particular also to the 10.3 percent margin. The improvement in margins in our GEA Farm Technologies and GEA Refrigeration Technologies segments was a particularly positive sign. We are also pleased that Moody’s has increased our credit rating from Baa3 to Baa2 with a stable outlook. The main reason for this is our improved risk profile thanks to the strategic realignment towards the more stable food industry,” said Jürg Oleas, CEO of GEA Group Aktiengesellschaft.
Assuming that there is no unexpected slowdown in global economic growth, GEA is reiterating its previous business outlook for 2014.
GEA Group: Key IFRS figures
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(EUR million)
Q1-Q2 Q1-Q2 1)
2014 2013
Order Intake 2,194.2 2,315.1
Revenue 2,068.3 1,988.7
Order backlog 2,137.2 2,085.3
Operating EBITDA 2) 213.2 190.8
as % of revenue 10.3 9.6
EBITDA 206.1 184.9
Operating EBIT 2) 176.1 156.4
as % of revenue 8.5 7.9
EBIT 157.4 138.5
as % of revenue 7.6 7.0
EBT 119.8 109.8
Profit after tax from continuing operations 94.2 86.5
Profit or loss after tax from discontinued operat. 33.8 29.7
Profit for the period 128.0 116.2
Earnings per share pre ppa (EUR) 0.71 0.65
Earnings per share (EUR) 0.66 0.60
Working capital (reporting date) 590.1 521.1
Working capital (average of the past 12m) 524.4 505.4
as % of revenue (average of the past 12m) 11.9 11.9
Net liquidity (+)/Net debt (-) (incl. DOP) -551.8 -580.4
Cash flow driver 3) 394.4 354.7
as % of revenue (average of the past 12m) 9.0 8.3
ROCE in % (EBIT/Capital Employed) 4) 16.2 13.4
ROCE in % (goodwill adjusted) 5) 22.9 19.3
CAPEX on property, plant and equipment 42.2 39.8
Employees (reporting date) 6) 18,186 17,438
1) Amounts adjusted due to classification of an operation as discontinued operation
2) Before effects of purchase price allocations and before one-offs
3) Cash flow driver = EBITDA – Capital expenditure – Change in Working Capital (average of the past 12 months)
4) Capital employed (average of the past 12 months) including goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999
5) Capital employed (average of the past 12 months) excluding goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999
6) Full-time equivalents (FTE) excluding vocational trainees and inactive employment contracts
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About GEA Group
GEA Group Aktiengesellschaft is one of the largest suppliers for the food processing industry and a wide range of other process industries. As an international technology group, the Company focuses on process technology and components for sophisticated production processes. In 2013, GEA generated consolidated revenues in excess of EUR 4.3 billion, more than 70 percent of which came from the food sector, which is a long-term growth industry. The group employed about 18,000 people worldwide as of June 30, 2014. GEA Group is a market and technology leader in its business areas. It is listed in Germany’s MDAX stock index (G1A, WKN 660 200) and the STOXX (R) Europe 600 Index. Further information is available on the Internet at: www.gea.com .
To unsubscribe from GEA Group Aktiengesellschaft’s news distribution list, please send an e-mail to [email protected] .
Contact:
GEA Group Aktiengesellschaft
Phone +49 (0)211 9136 1492
Fax +49 (0)211 9136 31087
www.gea.com
End of Corporate News
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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=KIJTCWEGPQ
Document title: Q2 report GEA Group
28.07.2014 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
| 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: | Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime Standard), Hamburg, München; Freiverkehr in Hannover, Stuttgart |
| End of News | DGAP News-Service |
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| 279473 28.07.2014 |
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