GEA Group AG

Earnings Release • Feb 6, 2012

News Details

Media | 6 February 2012 07:30

GEA Group Aktiengesellschaft: GEA boosts EBIT margin significantly in 2011

GEA Group Aktiengesellschaft / Key word(s): Enterprise/

06.02.2012 / 07:30

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* Order intake and revenue each up 23%, to EUR 5,610 million and EUR
5,417 million, respectively
* Operating profit up 43%
* 10.0% operating EBIT margin without GEA CT acquisition - an
increase of about 165 bps yoy
* Net debt of EUR 387 million following payments of EUR 520 million
for acquisitions
* Proposal to increase dividend by EUR 0.15 to EUR 0.55

Dusseldorf, February 6, 2012 - GEA Group's order intake rose 23 percent to
EUR 5,610 million in fiscal year 2011. Excluding the new GEA
Convenience-Food Technologies segment, the year on year increase would have
been 15 percent. It should be highlighted that the fourth quarter saw the
highest order intake in the fiscal year. The group's full-year revenue also
grew by 23 percent to EUR 5,417 million. Excluding the new segment, revenue
would have increased by only 15 percent.

Operating profit, meaning EBIT before the effects of purchase price
allocations, increased again in the past fiscal year, rising approximately
43 percent to EUR 525 million. Factors contributing to this success were
the selective intake of orders along with positive restructuring effects
achieved in recent years. The corresponding EBIT margin for the group was
lifted by around 140 basis points to 9.7 percent. Excluding the new GEA
Convenience-Food Technologies segment, the operating EBIT margin reached
even 10.0 percent, compared with 8.3 percent in the previous year. The
group's operating EBIT increased by EUR 64 million (approximately 44
percent) in the fourth quarter of 2011, while the adjusted EBIT margin rose
by approximately 160 basis points to 12.7 percent. Once again, discontinued
operations did not affect GEA Group's profit for the period.

Net liquidity as of December 31, 2010 (EUR +105 million) turned into net
debt of EUR 673 million in September 2011, primarily as a result of
acquisitions. Positive earnings contributions and strict liquidity
management cut net debt by EUR 286 million to EUR 387 million in the fourth
quarter. The ratio of working capital to revenue was 10.7 percent as of the
reporting date (previous year: 10.1 percent) and 12.7 percent on average
for the year (previous year: 12.4 percent).

'We are pleased that, despite the turbulence on the global financial
markets, GEA continued to see dynamic demand and closed the fiscal year on
an extremely high note. The volume growth and our profitability in
particular clearly exceeded our earlier expectations. Fiscal year 2011 was
characterized by the best operating profit and the largest acquisition
volume in over 10 years,' said Jürg Oleas, CEO of GEA Group
Aktiengesellschaft, adding: 'Given these encouraging figures, the Executive
Board and Supervisory Board will be proposing a dividend of 55 cents to the
Annual General Meeting, up from 40 cents in the previous year. We have
decided also to pay out around EUR 5 million to our employees below the top
management level as a special allowance in recognition of their outstanding
performance.'

For the current fiscal year 2012, GEA expects that demand in its sales
markets will match the high levels seen in 2011. Based on this assumption,
the Company anticipates a rise in order intake by up to 5 percent. Revenue
should increase by at least 5 percent. With regard to price quality, GEA
expects the market environment to be unchanged as against 2011. On this
basis, the EBIT margin should rise slightly compared to the previous year.

All figures for 2011 are preliminary and have not yet been audited. GEA's
consolidated financial statements and the annual financial statements of
GEA Group Aktiengesellschaft are being prepared by the Executive Board and
will be approved by the Supervisory Board at the beginning of March. The
audited Annual Report will be published on GEA Group's website on March 12,
2012.

GEA Group: Preliminary figures for 2011
(EUR million)

All figures as of the reporting date already include the acquisitions of
CFS and Bock starting from the second quarter. These acquisitions will be
reported in the figures for the period.

                                      Q1-Q4 2011 1)  Q1-Q4 2010 2)

Order Intake 5,610 4,578.0
Revenue 5,417 4,418.4
Order backlog 2,677 2,414.0
EBITDA pre purchase price allocation 3)5) 630 463.5
as % of revenue 11.6 10.5
EBITDA 3) 610 463.5
EBIT pre purchase price allocation 4)5) 525 366.8
as % of revenue 9.7 8.3
EBIT 4) 475 355.8
as % of revenue 8.8 8.1
EBT 399 170.7
Working capital (reporting date) 6) 579 444.6
Working capital (average) 7) 685 549.6
as % of revenue 8) 12.7 12.4
Net debt 9)10) 387 -104.8
Capital expenditure on property, plant and equip.155 87.9
Employees (reporting date) 11) 23,834 20,386

1) Preliminary figures
2) Figures for 2010 compared to those shown in the Annual Report
were adjusted to allow for revised accounting of pension and
lease obligations
3) in 2010 before restructuring expenses of 50.6 EUR million (Q4)
and 97.8 EUR million (Q1-Q4)
4) in 2010 before restructuring expenses of 71.5 EUR million (Q4)
and 119.3 EUR million (Q1-Q4)
5) before effects of purchase price allocations from acquisitions
6) Working capital = inventories + trade receivables - trade
payables - advance payments received
7) Average of the past 12 months
8) Working capital (average of the past 12 months) / revenue of the
past 12 months
9) Including discontinued operations
10) Net liquidity/ debt = cash and cash equivalents + marketable
securities - liabilities to banks
11) Full-time equivalents (FTE) excluding vocational trainees and
inactive employment contracts

About GEA Group
GEA Group Aktiengesellschaft is one of the largest suppliers of process
technology and components for the food and energy industries. As an
international technology group, the Company focuses on sophisticated
production processes. In 2011, GEA generated consolidated revenues in
excess of EUR 5.4 billion, 70 percent of which came from the food and
energy sectors, which are long-term growth industries. The group employed
about 23,000 people worldwide as of December 31, 2011. 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). Further information is
available on the Internet at: www.geagroup.com.

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Contact:
GEA Group Aktiengesellschaft
Phone +49 (0)211 9136 1492
Fax +49 (0)211 9136 31087
www.geagroup.com

End of Media Release

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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: ir@geagroup.com
Internet: www.geagroup.com
ISIN: DE0006602006
WKN: 660200
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, München; Freiverkehr in Hannover,
Stuttgart

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