EANS-News: GESCO distinctly profitable despite recession
- Full year guidance confirmed again after nine month period - Worst of the economic slump seems to have been overcome
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quarterly report
Subtitle: - Full year guidance confirmed again after nine month period - Worst of the economic slump seems to have been overcome
Wuppertal (euro adhoc) - Wuppertal, 3 February 2010 - Despite the severe recession in Germany and many export markets, GESCO Group can look back on a distinctly profitable third quarter and nine month period for the financial year 2009/2010 (1 April 2009 - 31 March 2010). Since the third quarter, business activities have been stabilising and customer enquiries have started to pick up again. This is an indication that declines have come to an end and that the worst of the economic slump has been overcome.
In the first nine months of the financial year 2009/2010, GESCO Group received consolidated incoming orders of EUR 169.0 million (previous year: EUR 305.9 million). Group sales fell by 29.5 %, from EUR 293.2 million to EUR 206.7 million. These figures already include declines in material prices of around EUR 25 million.
While margins in the previous year´s period benefited from extremely high capacity utilisation levels and subsequent economies of scale, key earnings figures in the reporting period consequently fell more sharply than sales revenues. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 19.6 million (EUR 40.3 million). Amortisation and depreciation was roughly at the same level as in the previous year. As a result, earnings before interest and taxes (EBIT) decreased further to EUR 11.5 million (EUR 32.6 million). The financial result improved from EUR -2.8 million to EUR -2.0 million. Group net income after minority interest reached EUR 6.1 million (EUR 18.4 million). Earnings per share totalled EUR 2.01 (EUR 6.07) pursuant to IFRS.
The Group´s workforce dropped slightly and amounted to 1,765 employees in the reporting period (1,780). This figure includes 45 employees of Georg Kesel GmbH & Co. KG, who were not yet included in the previous year´s figures.
Dr. Hans-Gert Mayrose, member of the Executive Board, on business development: "While many German manufacturing companies, particularly in the mechanical engineering sector, are currently struggling and incurring losses, GESCO Group is distinctly profitable despite the severe recession. In the third quarter, there was a slight recovery in business activities, which is likely to have continued in the fourth quarter. This confirms our impression that the worst of the economic slump has been overcome."
At the accounts press conference on 25 June 2009, Group sales were forecast to total between EUR 280 million and EUR 310 million, Group net income after minority interest between EUR 7 million and EUR 10.5 million, and earnings per share between EUR 2.31 and EUR 3.47. In the interim report for the first six months in November, the Group announced that Group net income after minority interest would come in at around the middle of the previously predicted range. This forecast can now be confirmed on the basis of the figures for the first nine months.
The complete III. quarterly report 2009/2010 is available online at www.gesco.de.
About GESCO AG GESCO AG is a financial holding for a group of industrial SMEs. It acquires successful, established niche providers, mainly through business succession agreements, with the objective of retaining long-term involvement in the companies while developing their business. GESCO AG is listed in the Prime Standard and SDAX. It offers private and institutional investors the opportunity to access SMEs.
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Further inquiry note:
Oliver Vollbrecht
Leiter Investor Relations
T.: +49(0)202 24820 18
info@gesco.de
Branche: Economy, Business & Finance
ISIN: DE0005875900
WKN: 587590
Index: SDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade
Original-Content von: GESCO AG, übermittelt durch news aktuell