GEA Group AG

Earnings Release • Jul 30, 2009

News Details

Corporate | 30 July 2009 07:30

GEA Group Aktiengesellschaft:GEA generates EUR 2.1bn order intake in first half-year

GEA Group Aktiengesellschaft / Interim Report/Half Year Results

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* Order intake Q2: EUR 1,036.0 million
* EBITDA before restructuring expenses Q2: EUR 95.4 million
* Cash flow from operating activities: EUR 177.9 million
* Expansion of capacity adjustment measures resolved

Bochum, July 30, 2009 - In an extremely difficult environment, GEA Group
order intake in the second quarter of 2009 declined by only 18.6 percent
year-on-year to EUR 1,036.0 million, thanks to the Company's robust and
broad-based product portfolio. This represents a slight decrease of 3.4
percent compared with the first quarter. As a result, the reduction
recorded by GEA Group Aktiengesellschaft was much lower than in the German
mechanical engineering sector as a whole. The Group's revenue in the second
quarter was down by 14.8 percent as against the previous year. Earnings
before interest, tax, depreciation, and amortization (EBITDA) before
restructuring expenses amounted to EUR 95.4 million in the second quarter,
31.2 percent below the same quarter of the record year 2008. This means
that both revenue (+4.7 percent) and earnings (+20.9 percent) were up on
the first quarter of 2009. One-time expenses for restructurings totaled EUR
13.1 million in the second quarter (Q1 2009: EUR 2.2 million). The Group's
profit for the second quarter amounted to EUR 32.4 million, after EUR 28.8
million in the first quarter of 2009.

After adjustment for additions due to acquisitions and initial
consolidation, capacity adjustment measures initiated by GEA have reduced
its workforce by a total of 875 full-time equivalents since the beginning
of the year, mostly in Western Europe and the United States. In addition to
the 564 Group employees, this figure includes 311 contract workers.
Moreover, reduced overtime and short-time working saved capacity equal to
an average of 366 employees each month in the first half of 2009. 821
employees in Germany were in short-time working at the end of June. The
savings from capacity adjustments have already contributed to the operating
profit of the first half-year.

'We have now decided to implement stage two of our action plan because of
the continued market weakness in almost all of our customer segments and
regions. In this context, we will reduce the Group's global workforce by a
total of around 1,300. Together with the reduced number of contract workers
and lower overtime, as well as the use of short-time working, this
represents a reduction in capacity amounting to more than 2,500 employees
in the Group. Expenses for restructuring measures will increase to
approximately EUR 60 million,' said Jürg Oleas, Chairman of the Executive
Board of GEA Group Aktiengesellschaft. 'I still do not see any basis for
giving reliable guidance about GEA's business growth in fiscal 2009 due to
the continuing high volatility in the markets.'

GEA Group consolidated data for Q2 2009
(EUR million) Q2 2009 Q2 2008
Order Intake
Energy and Farm Technology 309.3 385.9
Process Technology 729.5 889.4
GEA Group 1,036.0 1,272.7
Revenue
Energy and Farm Technology 368.7 447.1
Process Technology 731.6 844.6
GEA Group 1,103.9 1,295.8
EBITDA before restructuring expenses 95.4 138.6
% of revenue 8.6 10.7
EBITDA 82.3 138.6
EBIT before restructuring expenses 71.2 119.3
% of revenue 6.4 9.2
EBIT 58.1 119.3
% of revenue 5.3 9.2
EBT 44.5 109.0
Profit after tax on continuing operations 32.6 81.9
Loss after tax on discontinued operations -0.2 -9.4
GEA Group profit for the period 32.4 72.5
Earnings per share from continuing operations 1) 0.18 0.44
Earnings per share from discontinued operations 1) 0.00 -0.05
Earnings per share 1) 0.18 0.39
Net debt 2)3) 266.2 161.3
Capital expenditure 32,2 35.0
Employees at balance sheet date 4) 20,996 20,133
1) in EUR
2) Including discontinued operations
3) Net debt = loan liabilities - cash - securities
4) Full-time equivalents (FTE) 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 its
revenue from the long-term growing food and beverage industries. As of June
30, 2009, a workforce of over 20,000 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).
30.07.2009 Financial News transmitted by DGAP

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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, München, Hamburg; Freiverkehr in Hannover,
Stuttgart

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