GEA Sees Economic Slowdown and Specifies 2015 Guidance
In light of indicators of a further global economic downturn - particularly in emerging economies including China - as well as the announcement of the International Monetary Fund (IMF) to revise downwards its estimates for global economic growth, also GEA specifies its guidance for fiscal year 2015.
Although the company expects revenue growth to remain moderate in light of this development, this is no longer the case on an organic basis, i.e., adjusted for acquisitions and exchange rate effects. However, due to cost saving measures already implemented and the expected savings from the "Fit for 2020" initiative GEA is standing by the most recently announced figures for its earnings forecast. Hence, despite the challenging environment the company is still aiming for an operating EBITDA of between EUR 590 million and EUR 640 million in fiscal year 2015.
Jürg Oleas, CEO of GEA, commented on the current situation: "Our strategic decision to make the group structure more cost-efficient with flatter hierarchies has proven helpful, given the economic slowdown. In light of the measures introduced, we are standing by our earnings forecast and the dividend announced to date of at least EUR 0.70 per share."
Source: GEA Group Aktiengesellschaft
