• Third quarter revenue up more than 5% • Q3 operating EBITDA margin at 13% (up 74 bps) • Net debt reduced to EUR 356 million
GEA closed the third quarter of 2014 with a significant increase in operating EBITDA. As in the previous quarter, increases were recorded in the GEA Farm Technologies and GEA Refrigeration Technologies segments in particular, both of which saw double-digit growth.
At EUR 1,168 million, order intake from continued operations was flat year-on-year. A number of major projects, as well as the unrelated solid increase in basic business orders (below EUR 1 million) contributed to this outcome. Revenue for the past quarter stood at EUR 1,146 million, an increase of 5.2 percent. All segments recorded their highest ever third-quarter revenue figures. Consolidated revenue amounted to EUR 3,214 million in the first nine months of 2014. Organic growth was thus 6.4 percent.
The group’s operating EBITDA in the third quarter rose to EUR 149 million. This is more than EUR 15 million (almost 12 percent) above the already very good figure for the prior-year period. The operating EBITDA margin saw further improvement to 13.0 percent of revenue (previous year: 12.3 percent). GEA’s operating EBITDA in the first nine months of the year increased by EUR 38 million to EUR 362 million. The EBITDA margin rose to 11.3 percent (previous year: 10.5 percent).
“In addition to the very healthy increase in profitability on the back of revenue growth, we also continued to reduce our net debt. This stood at EUR 356 million at the end of the third quarter, and hence almost EUR 200 million below the figure at the end of June,” 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.