• Order intake of EUR 1,170 million in Q2 beats consensus • Second quarter organic revenue up 8 percent year-on-year • Q2 earnings per share up 7 percent year-on-year • Moody’s Investors Service lifts rating to Baa2 with stable outlook
GEA closed the second quarter of 2014 on a positive note. The GEA Farm Technologies and GEA Refrigeration Technologies segments in particular saw encouraging growth. At EUR 1,170 million, the company’s order intake adjusted for currency translation effects again almost reached the all-time highs seen in the prior-year quarter. This places GEA’s order intake at the upper end of expectations.
In the second quarter of 2014, the revenue generated by GEA’s continuing operations increased by 5.0 percent to EUR 1,118 million (previous year: EUR 1,065 million). Exchange rate movements reduced revenue by 3.0 percent. In the first half of 2014, revenue amounted to EUR 2,068 million (previous year: EUR 1,989 million). This corresponds to organic growth of 7.0 percent.
The group’s operating EBITDA in the second quarter rose to EUR 128 million, up EUR 10 million (8.1 percent) year-on-year. The operating EBITDA margin saw further improvement to 11.5 percent of revenue. The company’s operating EBITDA in the first six months of the year increased by EUR 22 million to EUR 213 million. At 10.3 percent, the operating EBITDA margin was up 71 basis points year-on-year.
Consolidated profit amounted to EUR 81 million in the second quarter, a 7.2 percent increase year-on-year. This corresponds to earnings per share of EUR 0.42 for the period (previous year: EUR 0.39).
“In 2014, GEA generated its highest ever operating EBITDA for a first half-year period. This applies in particular also to the 10.3 percent margin. The improvement in margins in our GEA Farm Technologies and GEA Refrigeration Technologies segments was a particularly positive sign. We are also pleased that Moody’s has increased our credit rating from Baa3 to Baa2 with a stable outlook. The main reason for this is our improved risk profile thanks to the strategic realignment towards the more stable food industry,” said Jürg Oleas, CEO of GEA Group Aktiengesellschaft.
Assuming that there is no unexpected slowdown in global economic growth, GEA is reiterating its previous business outlook for 2014.