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 %

 

Results of operations

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

Wstecz