Corporate press release
GEA publishes figures for the third quarter
29 Oct 2018
After a very good previous quarter, GEA also closed the third quarter of 2018 on a positive note. GEA set new third quarter records for both order intake and revenue. The operating EBITDA margin was also up year-on-year, enabling GEA to nearly reverse the deficit from a weak first quarter.
Nevertheless, earnings development, in particular in the customer industry Dairy Processing, falls short of the company’s own expectations. In addition, growing economic imponderables, a rising number of trade constraints, and detrimental product mix effects are in the offing. As early as mid-October, GEA raised its revenue expectations for the 2018 financial year, while slightly reducing its forecasts for operating EBITDA margin and cash flow driver margin.
“Although demand for our innovative products and solutions continues to grow at a highly gratifying rate, we expect the fourth quarter of the year to be challenging,” said Jürg Oleas, CEO of GEA. “For that reason, we are looking at a group revenue of approximately EUR 4.8 billion and an operating EBITDA of around EUR 540 million for 2018 as a whole, and this would correspond to a margin of around 11.3 percent.”
IFRS key figures of GEA
(EUR million) | Q3 2018 | Q3 2017 | Change in % | Adjusted change in % | Q1-Q3 2018 | Q1-Q3 2017 | Change in % | Adjusted change in % |
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Results of operations |
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Order intake | 1,197.2 | 1,056.7 | 13.3 | 10.7 | 3,682.7 | 3,433.8 | 7.2 | 5.7 |
Revenue | 1,188.9 | 1,130.7 | 5.1 | 2.8 | 3,455.3 | 3,273.1 | 5.6 | 4.7 |
Operating EBITDA2 | 137.6 | 120.5 | 14.2 | – | 337.1 | 339.4 | –0.7 | – |
as % of revenue | 11.6 | 10.7 | – | – | 9.8 | 10.4 | – | – |
Operating EBIT2 | 112.2 | 99.0 | 13.4 | – | 264.9 | 277.2 | –4.4 | – |
as % of revenue | 9.4 | 8.8 | – | – | 7.7 | 8.5 | – | – |
EBIT | 84.7 | 77.6 | 9.1 | – | 195.8 | 219.9 | –11.0 | – |
Net assets |
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Working capital intensity in % (average of the last 12 months) | 16.3 | 16.4 | – | – | 16.3 | 16.4 | – | – |
Net liquidity (+)/Net debt (-) | –330.7 | 227.4 | – | – | –330.7 | 227.4 | – | – |
Financial position |
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Operating cash flow driver margin3 | 9.0 | 7.2 | – | – | 9.0 | 7.2 | – | – |
ROCE in % (goodwill adjusted)4 | 12.9 | 15.4 | – | – | 12.9 | 15.4 | – | – |
Full-time equivalents (reporting date)5 | 18,535 | 17,163 | 8.0 | 2.7 | 18,535 | 17,163 | 8.0 | 2.7 |
GEA shares |
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Earnings per share (EUR) | 0.33 | 0.24 | 40.0 | – | 0.71 | 0.82 | –13.3 | – |
1) The key figures for the constant exchange rates are presented on page 6 of the Q3 statement.
2) Before effects of purchase price allocations and adjustments
3) Operating cash flow driver = operating EBITDA – capital expenditure + adjustment of capital expenditure in strategic projects – change in working capital (average of the last 12 months)
4) Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999 (average of the last 12 months)
5) Organic change without acquisitions but including other changes in the basis of consolidation
Media Relations
GEA Group Aktiengesellschaft
Peter-Müller-Str. 12
40468
Düsseldorf
Germany
+49 211 9136-0
About GEA
GEA is one of the world’s largest suppliers of systems and components to the food, beverage and pharmaceutical industries. The international technology group, founded in 1881, focuses on machinery and plants, as well as advanced process technology, components and comprehensive services.
