GEA Group AG

Earnings Release • May 5, 2009

News Details

Corporate | 5 May 2009 07:30

GEA Group Aktiengesellschaft: GEA Starts the New Fiscal Year with a Profit

GEA Group Aktiengesellschaft / Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

* Revenue 6.5 percent down in the first quarter of 2009
* EBITDA before restructuring expenses 16.5 percent below prior-year
quarterly result
* Capacity adjustments underway

Bochum, May 5, 2009 - In the first quarter of 2009, revenue of the GEA
Group dropped 6.5 percent compared to the respective prior-year quarter, to
EUR 1,055 million. Earnings before interest, tax, depreciation and
amortization (EBITDA) and before restructuring expenses reached EUR 78.9
million, thus falling short of the level achieved in the first quarter of
the record year 2008 by 16.5 percent. Earnings before interest and tax
(EBIT) and before restructuring expenses fell to EUR 56.0 million, i.e. by
26.3 percent. The corresponding EBIT margin decreased 143 basis points to
5.3 percent. The one-off expenses for restructuring measures amounted to
EUR 2.2 million.

In line with the current cost cutting program, since December 31, 2008 the
Group's workforce has been reduced by around 300 full-time employees
worldwide, net of additions through acquisitions and first consolidations.
As of the reporting date, the number of agency personnel was curbed by 223
and overtime was cut back. In addition, currently about 1,400 employees are
on short time.

As already reported, order intake decreased 22.0 percent compared to the
first quarter of 2008, to EUR 1,073 million. The two segments, Energy and
Farm Technology on the one hand and Process Technology on the other, were
affected by this trend in about equal measure.

'In the quarter under review, we experienced a decline in order intake in
virtually all our business areas, although differentiations have to be made
in judging the demand situation at the individual customer industries',
explained Jürg Oleas, Chairman of the Executive Board of GEA Group
Aktiengesellschaft. 'A pronounced downtrend prevails in the chemicals,
shipbuilding, oil and gas markets. In the present situation, customers are
hesitant to award contracts, especially for major projects, often for
financing reasons, but also in anticipation of decreasing costs. In the
face of persistent uncertainty regarding the general development of the
world economy it is impossible to make quantitative forecasts at present,
although it is definitely foreseeable even now that our revenue 2009 will
be underneath our record revenue of 2008'.

GEA Group consolidated data for Q1 2009 (in EUR million)
(EUR million) Q1 2009 Q1 2009
Order Intake
Energy and Farm Technology 361.9 451.8
Process Technology 713.5 924.9
GEA Group 1,072.5 1,374.3
Revenue
Energy and Farm Technology 327.8 363.2
Process Technology 723.0 757.4
GEA Group 1,054.5 1,127.2
EBITDA GEA Group before restructuring expenses 78.9 94.5
EBITDA GEA Group 76.7 94.5
EBIT GEA Group before restructuring expenses 56.0 76.1
% of revenue 5.3 6.7
EBIT
Energy and Farm Technology 8.2 20.1
Process Technology 49.1 62.5
GEA Group 53.8 76.1
% of revenue 5.1 6.7
EBT 39.5 67.3
Net income/loss on continuing operations 28.8 49.2
Net income/loss on discontinued operations 0.0 0.3
Net income/loss GEA Group 28.8 49.5
Earnings per share on continuing operations 1) 0.16 0.27
Earnings per share on discontinued operations 1) 0.00 0.00
Earnings per share 1) 0.16 0.27
Net debt 2)3) 211.2 54.6
Capital expenditure incl. finance leases 31.9 25.9
Employees at balance sheet date 4) 21,257 19,905
1) EUR
2) Including discontinued operations
3) Net debt = loan debt - cash and cash equivalents - securities
4) Full-time equivalents (FTE's), excl. apprentices/trainees and
inactive Employees

GEA Group Aktiengesellschaft is one of the largest pure mechanical
engineering groups in Germany. As an internationally operating technology
group, it concentrates on specialty mechanical engineering with a focus on
process technology and components. Group revenue amounted to EUR 5.2
billion in fiscal year 2008. The group generated about 50 percent of this
revenue from the stable-growth food and beverages industries. As of March
31, 2009, a workforce of over 21,000 employees served customers in 50
countries. GEA Group is a market and technology leader in 90 percent of its
business areas. GEA Group is listed in the MDAX index (G1A, WKN 660200).
05.05.2009 Financial News transmitted by DGAP

---

Language: English
Issuer: GEA Group Aktiengesellschaft
Dorstener Straße 484
44809 Bochum
Deutschland
Phone: +49 (0)234 980-0
Fax: +49 (0)234 980-1004
E-mail: investor.relations@geagroup.com
Internet: www.geagroup.com
ISIN: DE0006602006
WKN: 660200
Indices: MDAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf, Hamburg, München; Freiverkehr in Hannover,
Stuttgart

End of News DGAP News-Service

---