Corporate | 29 July 2015 07:30
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GEA Group Aktiengesellschaft / Key word(s): Quarter Results
GEA increases revenue as well as profitability and implements strategy program Düsseldorf, July 29, 2015 – In the second quarter 2015 revenue of GEA exceeded the high level seen in the previous year by 3 percent. The service business demonstrated healthy growth. The order intake declined slightly due to the limited number of major orders. However, the basic business saw stable growth rates in both of GEA’s business areas. GEA’s operating profit improved again. This shows that the increases in efficiency resulting from the “Fit for 2020” program have begun to have an impact. Both operating EBITDA and the operating EBITDA margin hit all-time highs for a second quarter. Non-recurring expenses of about EUR 134 million were recognized in the reporting quarter. This figure includes restructuring expenses of around EUR 115 million for the “Fit for 2020” program. Consolidated profit in the last quarter was negative overall as a result of these substantial non-recurring expenses. “Unfortunately, we were unable to escape the effects of the renewed decline in momentum in some of our markets in the reporting period. However, it is encouraging to see that our targeted measures are paying off and that we further increased profitability. For example, we have reduced our workforce by around 300 employees since the beginning of the year. This reduction is partly attributable to our “Fit for 2020″ program. The workforce reduction and the initial recognition of material non-recurring expenses for this strategic project show that we are implementing it systematically. We are on track with this initiative,” said GEA CEO Jürg Oleas. In addition, three acquisitions were made in the past quarter, two of which have already been completed. With these acquisitions, which together generated revenue of almost EUR 100 million in 2014, GEA implements its strategy of closing gaps in technology by acquiring specialized companies, and of expanding the product portfolio in terms of covering all steps in the process. In addition to its operating activities, GEA has made substantial progress with its strategic realignment as part of the “Fit for 2020” initiative in the second quarter, taking on a new group structure. On the basis of a simplified, harmonized, and more streamlined organization, the aim is not only to exploit existing substantial savings potential, but also, in particular, to create the organizational conditions that will ensure future competitiveness and implementation of GEA’s growth targets.
In line with its current assessment, GEA expects that the forecast to date for the operating business in 2015 will be met, despite less dynamic growth. Assuming this, the dividend for fiscal year 2015 should not be less than the EUR 0.70 per share resolved last year, independent of expenses incurred under the “Fit for 2020” initiative.
GEA Group: Key IFRS figures
Order Intake 1,148.8 1,169.9
1) Before effects of purchase price allocations and before one-offs
About GEA
If you do not want to receive any further information from GEA, please send an email to pr@gea.com or call us. Contact:GEA Group Aktiengesellschaft Phone +49 (0)211 9136 1492 Fax +49 (0)211 9136 31087 www.gea.com +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=WMJHIMPHMT Document title: GEA Q2 2015 report 2015-07-29 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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: | ir@gea.com | |
| Internet: | www.gea.com | |
| ISIN: | DE0006602006 | |
| WKN: | 660200 | |
| Indices: | MDAX | |
| Listed: | Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Munich; Regulated Unofficial Market in Hanover, Stuttgart | |
| End of News | DGAP News-Service |
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| 381751 2015-07-29 |