Based on preliminary figures for September 2016, GEA expects for Q3 2016 sales around EUR 1,100 million (last year EUR 1,107 million, -1.8% organic change – i.e. adjusted for currency and acquisition effects – against Q3 2015), order intake around EUR 1,084 million (last year EUR 1,068 million, 0.3% organic change against Q3 2015) and operating EBITDA* around EUR 113 million (last year EUR 144 million).

Influencing factors for sales

Business Area Solutions:

  • Slower execution mainly of dairy processing projects – in large parts customer induced – and decline in cooling solutions for the oil and gas industry leading to an approx. 4.5% organic decline 

Business Area Equipment:

  • Limited overall growth in light of an organic decline of approx. 8% in the dairy farming business

Influencing factors for order intake

Only slight organic growth due to delays in the placement of larger dairy processing orders which were expected for Q3 2016, as well as a continuing investment-restraint in the dairy farming and oil and gas industries.

Influencing factors EBITDA

Business Area Solutions:

  • Cost overruns in a couple of large projects including additional provisions for remaining risks from these; adverse operating leverage effect from approx. 4.5% organic sales decline of the entire business area in Q3 2016 compared to previous year

Business Area Equipment:

  • Adverse operating leverage effect from 8% organic sales decline in the dairy farming business during Q3 2016 compared to previous year 

The figures for September revealed that adverse impacts for the group had accrued to such an extent that further potentials to fully mitigate these impacts until year’s end by countermeasures such as additional saving initiatives seemed exhausted. While all other businesses are on track, they cannot mitigate the above mentioned adverse effects any more.

As a consequence, GEA adjusts its guidance for the financial year 2016 with assumptions unchanged as follows:

  • Moderate sales decline against prior year (previously: moderate increase)
  • An operating EBITDA* of around EUR 570 million including approx. EUR 10 million from the acquisition Imaforni (previously: guided range between EUR 645 million and EUR 715 million without Imaforni)
  • Operating cash flow driver margin** around 10% (previously: 10.0-11.0%)

The mid-term financial targets given at the occasion of the Capital Markets Day at the beginning of October 2016 are confirmed in all aspects (see CMD 2016 presentation p. 98; accessible at   


GEA’s Q3 results will be published on 28 October 2016.


* operating EBITDA is defined in GEA’s half-yearly financial report 2016, p. 42

** operating cash flow driver margin is defined in GEA’s half-yearly financial report 2016, p. 3, FN 2

GEA’s half-yearly financial report 2016 is accessible at


The notification has been published on October 19, 2016, at 11.52pm.

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