Media | 31 October 2013 07:30


GEA Group Aktiengesellschaft: GEA increases order intake by around 6 percent (news with additional features)



(DGAP-Media / 31.10.2013 / 07:30)

GEA increases order intake by around 6 percent

– Order intake for five core segments up organically by 9.4% on prior-year quarter
– Stable organic order intake for GEA Heat Exchanger in the third quarter
– GEA Food Solutions again contributes positively to earnings
– Operating EBIT margin is stable at 10.0% of revenue

Düsseldorf, October 31, 2013 – Order intake at Düsseldorf-based engineering company GEA has risen to EUR 1,509 million. This corresponds to a 5.8 percent increase after adjustment for portfolio changes and significant adverse currency translation effects. In particular, the two segments strongly focused on the food industry, GEA Mechanical Equipment and GEA Process Engineering, continued their positive performance. Adjusted for currency translation effects and the suspension of a major order from the previous year, the GEA Heat Exchangers Segment increased its order intake by 3.2 percent year-on-year in the reporting period. In the first three quarters, order intake improved organically by 4.2 percent to EUR 4,530 million. The food and beverage area expanded significantly by 10 percent in this period thanks to a number of major orders. Its share of GEA’s order intake increased to 58 percent. Revenue rose organically by 4.4 percent year-on-year to EUR 1,459 million in the third quarter and cumulatively by 2.5 percent to EUR 4,134 million.

The group’s operating EBITDA, i.e., EBITDA adjusted for purchase price allocation effects and nonrecurring items, rose by 1.3 percent to EUR 172 million in the third quarter of 2013. This increased the corresponding EBITDA margin to 11.8 percent of revenue. The operating EBIT margin remained unchanged at 10.0 percent of revenue. Cumulative earnings per share improved by 10.1 percent to EUR 1.03, despite the increase of 4.3 percent in the average number of outstanding shares since September 2012 in connection with the settlement of the award proceedings. The cash flow driver margin (i.e. the ratio of the cash generated to revenue) rose significantly from 5.7 percent as of September 30, 2012, to 9.4 percent as of September 30, 2013, providing the financial scope to support profitable growth.

‘Our double-digit organic growth in order intake from the food and beverage sector since the beginning of the year outperformed growth rates in the engineering sector in general. Thanks to this, organic growth by our five core segments as a whole amounted to over 9 percent this quarter. Together with our strong Q3 operating EBIT margin of 10 percent, this underscores our strong market position in demanding end markets. As expected, our GEA Food Solutions Segment generated a positive result in the past quarter,’ said Jürg Oleas, CEO of GEA Group Aktiengesellschaft.

Despite the IMF’s repeated downward revision of its economic forecasts for 2013, GEA is expecting moderate organic revenue growth for the Group as a whole in the current fiscal year. This growth is being driven by the five future core segments, whose average organic revenue growth is expected to be in excess of 5 percent. With respect to our cash flow drivers, the group is now aiming for a ratio to revenue of around 9.0 percent in 2013 (after 6.4 percent in the previous year), rather than the previous figure of at least 8.0 percent. Assuming constant currency exchange rates as in FY 2012 GEA aims for an earning target (EBITDA) of around EUR 700 million (previous year: approximately EUR 600 million). This figure does not include costs relating to the strategy and portfolio project in the low tens of millions resulting in particular from the decision on this project announced on June 20, 2013.


GEA Group: Key IFRS figures

(EUR million) Q1-Q3 2013 Q1-Q3 2012 1)

Order Intake 4,530.2 4,423.3
Revenue 4,134.1 4,100.5
Order backlog 2,926.5 2,967.8
Operating EBITDA 2) 425.1 417.0
as % of revenue 10.3 10.2
EBITDA 419.3 370.0
Operating EBIT 2) 347.2 344.0
as % of revenue 8.4 8.4
EBIT 321.8 277.4
as % of revenue 7.8 6.8
EBT 274.7 224.1
Profit after tax from continuing operations 205.3 173.7
Profit or loss after tax from discontinued operat. -6.0 –
Profit for the period 199.3 173.7
Earnings per share pre ppa (EUR) 1.11 1.03
Earnings per share (EUR) 1.03 0.94
Working capital (reporting date) 765.0 740.5
Working capital (average of the past 12m) 713.0 762.4
as % of revenue (average of the past 12m) 12.4 13.3
Net liquidity (+)/Net debt (-) -515.9 -621.7
Cash flow driver 3) 541.6 329.2
as % of revenue (average of the past 12m) 9.4 5.7
ROCE in % (EBIT/Capital Employed) 4) 13.3 12.4
ROCE in % (goodwill adjusted) 5) 19.7 18.6
CAPEX on property, plant and equipment 85.4 92.7
Employees (reporting date) 6) 24,893 24,560

1) Amounts adjusted due to change in accounting policy for employee benefits
2) Before effects of purchase price allocations from revalued assets and liabilities and 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

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 2012, GEA generated consolidated revenues in excess of EUR 5.7 billion, 70 percent of which came from the food and energy sectors, which are long-term growth industries. The group employed about 25,000 people worldwide as of September 30, 2013. 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 .

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



End of Media Release

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Additional features:

Document: http://n.equitystory.com/c/fncls.ssp?u=YPQPJRYVWM

Document title: Q3 report GEA Group AG


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

31.10.2013 Dissemination of a Press Release, transmitted by DGAP – a company 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: ir@gea.com
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-Media

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