GEA issues Guidance for 2011
Düsseldorf, March 10, 2011 – At its 2010 earnings press conference, GEA confirmed the preliminary figures it had already published at the beginning of February. In 2010, order intake increased by 12 percent to EUR 4,578 million. Revenue reached the previous year’s volume at EUR 4,418 million. Profit from operating activities before interest, tax, and restructuring expenses amounted to EUR 356.8 million. The corresponding margin of 8.1 percent represents a year-on-year increase of 52 bps. EBIT after restructuring expenses amounted to EUR 237.5 million. Consolidated profit amounted to EUR 133.7 million, producing earnings per share of EUR 0.72. Once again, discontinued operations did not affect GEA Group’s consolidated profit.
Net liquidity more than doubled year-on-year to EUR 104.8 million, partly due to lower investing activities and the targeted reduction in working capital, which could be reduced by approximately EUR 350 million in the course of the past two fiscal years.
Commenting on business expectations for the current year, Jürg Oleas, CEO of GEA Group Aktiengesellschaft, noted: “The now encouraging level of investment in the food industry is likely to remain firm, and the energy sector, which has been muted to date, is set to continue recovering. As a result, we are forecasting an organic increase in order intake and revenue of at least 5 percent in 2011. With regard to earnings, we are expecting the EBIT margin to grow to approximately 9 percent. No further significant one-off expenses are expected for 2011.”
In addition, the recent acquisitions of Convenience Food Systems (CFS), Bock, and Mashimpeks, which together generated almost EUR 500 million in revenue in the past fiscal year, will contribute to GEA’s business volume on a time-proportionate basis in 2011. Their initial consolidation is expected between February and July.
Looking to the future, Oleas believes that “Our revenue will continue to increase in fiscal year 2012 as against 2011. In 2012, when all restructuring measures will have taken full effect, we are expecting additional increases in both earnings and the EBIT margin. We expect all segments to contribute to this positive development.”
GEA’s policy is to distribute one-third of the group’s earnings as a dividend. The distribution of EUR 0.40 which has been proposed for the past fiscal year is in fact significantly in excess of this.
GEA Group Aktiengesellschaft is one of the largest suppliers of process technology and components for the food and energy industries. As an international technology group, the Company focuses on sophisticated production processes. In 2010, GEA generated consolidated revenues in excess of EUR 4.4 billion, 70 percent of which came from the food and energy sectors, which are long-term growth industries. The group employed over 20,000 people worldwide as of December 31, 2010. 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).