GEA Releases Preliminary First Quarter 2018 Results
GEA Group Aktiengesellschaft has announced preliminary first quarter 2018 results while simultaneously confirming its business outlook for the year 2018.
Order intake is expected to amount to approximately EUR 1,100 million (previous year EUR 1,136 million). In this context, adverse currency effects total just under EUR 60 million. Group revenue is likely to rise to around EUR 1,035 million (previous year EUR 1,004 million). Adverse currency effects add up to approximately EUR 50 million. Operating EBITDA is expected to amount to approximately EUR 65 million (previous year EUR 96 million).
Following increased order intake levels in the months of January and February, the Business Area Solutions has seen a rather subdued order intake in March. Moreover, the sales volume generated by this Business Area in March is approximately EUR 30 million down compared to previous year. While the disappointing relative gross margin achieved by the Business Area Solutions in January and February - notably in the American companies - has gone up in March, it is still lagging behind previous year s level. In the first quarter, the Business Area Equipment has witnessed a more than 10 percent overall organic growth in order intake with all product groups contributing to this development. On the other hand, the earnings increase of this Business Area due to volume growth was unable to fully offset the currency-related disadvantages and adverse product mix effects, in particular in the USA.
"We confirm our business outlook for the year 2018. This assessment is based on our solid order backlog as well as the measures already initiated. Apart from focusing our attention more strongly on the product mix, we have already launched initiatives designed to enhance earnings contributions in North America. Furthermore, we will continue to consistently exert cost discipline throughout the current fiscal year. In a challenging environment, the second quarter s order intake will also be essential for achieving our business outlook," explained Jürg Oleas, CEO of GEA Group Aktiengesellschaft.
Source: GEA Group Aktiengesellschaft