GEA Announces Figures for the Third Quarter
GEA s order intake in the third quarter of 2016 was EUR 1,084 million.
The development was impacted by delays in the awarding of projects, above all in the dairy processing sector, a decline in orders from the oil and gas industry, and by the ongoing challenging economic environment in the dairy farming customer industry. Due to weaker growth in the Business Area Solutions, third-quarter revenue fell to EUR 1,101 million.
Operating EBITDA in the third quarter was EUR 113 million. The decline compared with the prior year s figure is largely explained by cost overruns in a few major projects and by the impact of reduced capacity utilization arising from the contraction in revenue.
"Although business remains solid in many of our customer industries, the group has experienced negative financial performance in certain areas during the third quarter, which cannot be fully compensated towards the end of the financial year. As a result, we have adjusted our forecast for the 2016 financial year a few days ago," said Jürg Oleas, Chairman of the Executive Board of GEA in his appraisal of the present situation.
Source: GEA Group Aktiengesellschaft
