GFT Technologies AG / Key word(s): Profit Warning
28.10.2011 08:15
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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GFT adapts revenue and earnings targets for 2011 to uncertain market
environment
In the third quarter of the current financial year, the GFT Group was not
able to continue its dynamic development of the first six months as
expected. The European debt crisis and resulting financial market
uncertainties led the financial sector to postpone investments which was
noticeable above all from September onwards. This had a negative impact on
revenues in Corporate and Investment Banking in the last month of the third
quarter and resulted in a burden on the operating result of the Services
division. As a consequence, earnings contributed by this segment fell short
of expectations. Falling financial sector demand has also dimmed the
outlook for the fourth quarter.
For the first nine months of 2011, preliminary pre-tax earnings (EBT) of
the GFT Group were slightly up on the previous year at EUR 9.05 million
(prev. year: EUR 8.76 million). Preliminary EBT in the third quarter
amounted to EUR 3.53 million (prev. year: EUR 4.11 million), corresponding
to an increase over the second quarter (EUR 3.50 million) and first quarter
(EUR 2.02 million).
Compared to the same period last year, total preliminary revenue of the GFT
Group in the first nine months of 2011 grew by 16 percent to EUR 207.87
million (prev. year: EUR 178.74 million). This was due to the positive
development of revenue in the Resourcing division. In the third quarter of
2011, the Services division posted a decline in revenue in Germany, the UK
and the USA, where demand for IT solutions for Corporate and Investment
Banking had fallen.
In view of the volatile development of the financial markets and ongoing
economic uncertainties, demand from the financial sector is likely to
remain subdued in the fourth quarter. Against this backdrop, the GFT Group
no longer expects to reach its previous forecast for earnings before taxes
of EUR 13 million on revenue of EUR 275 million. The Executive Board has
therefore issued new guidance for 2011 as a whole and now expects earnings
before taxes to reach EUR 11 million on revenue of EUR 270 million in the
financial year 2011.
Contact:
Andrea Wlcek
Director Global Marketing, Media & Investor Relations
GFT Technologies AG
FilderhauptstraÃe 142
70599 Stuttgart
Germany
T +49 711 62042-440
F +49 711 62042-301
andrea.wlcek@gft.com
www.gft.com
28.10.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: GFT Technologies AG
Filderhauptstr. 142
70599 Stuttgart
Germany
Phone: +49 (0)711/62042-0
Fax: +49 (0)711/62042-301
E-mail: Investor-Relations@gft.com
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: GFT Technologies AG: GFT adapts revenue and earnings targets for 2011 to uncertain market environment
| Source: EQS Group AG