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GEA Group Q3 Preliminary Operating EBITDA Rises; Updates FY Outlook

GEA Group AG (GEAGF.PK,GEAGY.PK), a technology provider for food processing industry, reported that preliminary operating EBITDA for the third-quarter was about 135 million euros, up 12 percent from the previous year's 120.5 million euros.

Quarterly order intake was about 1.180 billion euros, up 12 percent from last year's 1.057 billion euros. Revenue for the quarter rose 4 percent to 1.180 billion euros from 1.131 billion euros in the prior year.

However, earnings development, particularly in the customer industry Dairy Processing, falls short of the company's own expectations. For this reason, the Executive Board currently expects revenue of about 4.800 billion euros or 4.950 billion euros on constant exchange rates and operating EBITDA of 540 million euros or 550 million euros on constant exchange rates for the 2018 fiscal year. This corresponds to an operating EBITDA margin of about 11.3 percent or about 11.1 percent on constant exchange rates.

Following this development, the Executive Board adjusted its outlook, which is based on constant exchange rates. For the current fiscal year, the company expects revenue to grow about 7.5 percent. Previously it was expected at the upper end of 5 to 6 percent.

The company now expects annual operating EBITDA margin of about 11.1 percent. Previously it was expected at the lower end of 12 to 13 percent.

The company projects operating cash flow driver margin of about 8.5 percent. Earlier it was expected at the lower end of 8.7 to 9.7 percent.

All other assumptions remain unchanged as outlined in the 2017 Annual Report and the 2018 Half-Yearly Financial Report.

The company said it will publish its third quarter results on October 29th, 2018.

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