logo
Plus   Neg
Share
Email

GEA Warns On Q1 Earnings, Orders; Sees Revenue Growth; Confirms FY18 View

GEA Group AG (GEAGF.PK,GEAGY.PK), a system provider for food processing industry, announced Thursday its preliminary first-quarter results and confirmed its business outlook for the year 2018.

For the first quarter, operating EBITDA, a key earnings metric, is expected to be approximately 65 million euros, lower than previous year's 96 million euros.

Group revenue is likely to rise to around 1.035 billion euros from previous year's 1.004 billion euros. Adverse currency effects add up to approximately 50 million euros.

Order intake is expected to amount to approximately 1.10 billion euros, compared to 1.136 billion euros a year ago. Adverse currency effects total under 60 million euros.

The company noted that 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.

Looking ahead, GEA Group CEO said, "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."

In March, GEA said it aims to grow fiscal 2018 revenue by between 5 and 6 percent and operating EBITDA margin will probably be between 12.0 and 13.0 percent of revenue.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Stocks recovered from an initial move to the downside but showed a lack of direction over the remainder of the trading session on Monday. The major averages spent most of the day bouncing back and forth across the unchanged line. Internet of Things platform EVRYTHNG is teaming up with IOTA Foundation to use IoT and distributed ledger technology to build a platform to provide transparency and provenance for consumer goods supply chains. EVRYTHNG is an IoT platform that activates every consumer product to make it intelligent, interactive and trackable, while IOTA is focused on DLT and permissionless ecosystem development. Target Corp. has introduced Everspring, a new household essentials brand comprised of more than 70 household essentials items that includes bio-based or recycled materials or natural fibers. The new, in-house brand has been designed by Target with sustainability in mind and is part of its efforts to make products that include ingredients derived from plants or renewable materials more accessible.
Follow RTT