DGAP-News: GEA Group Aktiengesellschaft: GEA increases revenue as well as profitability and implements strategy program (news with additional features)


DGAP-News: GEA Group Aktiengesellschaft / Key word(s): Quarter Results
GEA Group Aktiengesellschaft: GEA increases revenue as well as
profitability and implements strategy program (news with additional
features)

29.07.2015 / 07:30

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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
(EUR million) 
                                                Q2 2015   Q2 2014

Order Intake                                    1,148.8   1,169.9
Revenue                                         1,150.1   1,117.7
Operating EBITDA 1)                               139.3     128.0
 as % of revenue                                   12.1      11.5
Operating EBIT 1)                                 119.8     109.3
 as % of revenue                                   10.4       9.8
EBIT                                              -20.9      98.7
Working capital intensity in % 2)                  12.3      11.9
Net liquidity (+)/Net debt (-)                    603.4    -551.8
Cash flow driver margin 3)                          6.6       9.0
ROCE in % (goodwill adjusted) 4)                   16.4      22.9
Full-time equivalents (reporting date)           17,975    18,186
Earnings per share before one offs (EUR) 5)        0.43      0.42

1) Before effects of purchase price allocations and before one-offs 
2) Average of the past 12m
2) 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) excluding goodwill from
the acquisition of the former GEA AG by the former Metallgesellschaft AG in
1999
5) Calculated before non-recurring items using the corresponding tax rates
for continuing and discontinued operations


About GEA 
GEA is one of the largest suppliers for the food processing industry and a
wide range of process industries that generated consolidated sales of
approximately EUR 4.5 billion in 2014. As an international technology
group, the Company focuses on process technology and components for
sophisticated production processes in various end-user markets. The Group
generates more than 70 percent of its revenue in the sustainably growing
food industry. As of June 30, 2015, the Group employed about 18,000 people
worldwide. GEA is a market and technology leader in its business areas. The
Company is listed in Germany's MDAX stock index (G1A, WKN 660 200). In
addition, GEA's share is a constituent of one of the MSCI Global
Sustainability Indexes. Further information is available on the Internet at
www.gea.com.

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

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29.07.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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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:      Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime    
             Standard), Hamburg, Munich; Regulated Unofficial Market in  
             Hanover, Stuttgart                                          
 
 
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