Following the Group’s business development in October, the Executive Board of GEA Group Aktiengesellschaft has decided to adjust its outlook for the operating cash flow driver margin* for the 2018 financial year (based on constant exchange rates) to a corridor of 6.5 to 7.0 percent (previously: approx. 8.5 percent).

This forecast corresponds to a reported (i.e. based on current exchange rates) operating cash flow driver margin of 7.0 to 7.5 percent. This new appraisal reflects the higher level of working capital, which has persisted in the current financial year for longer than in the previous year due to volume. 

The remaining elements of the outlook and other assumptions for the 2018 financial year remain unchanged as outlined in the Report for the Third Quarter (see page 6) and in the 2017 Annual Report (see page 120). 

Despite the good volume development in 2018, GEA is less confident about the development of its business in 2019. The deteriorating macroeconomic environment combined with further increases in material and personnel costs will have a negative impact.

* Operating cash flow driver as defined on pages 3, 8 and 44ff of the 2018 Half-yearly Financial Report.