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GEA Group Says Less Confident About Development Of Business In 2019

GEA Group AG (GEAGF.PK,GEAGY.PK), a technology provider for food processing industry, said it is less confident about the development of its business in 2019, despite the good volume development in 2018. The deteriorating macroeconomic environment combined with further increases in material and personnel costs will have a negative impact.

The company said that it adjusted its outlook for the operating cash flow driver margin for the 2018 financial year (based on constant exchange rates) to a corridor of 6.5 to 7.0 percent, compared to the prior outlook of about 8.5 percent.

The forecast corresponds to a reported --- based on current exchange rates--- operating cash flow driver margin of 7.0 to 7.5 percent. This new appraisal reflects the higher level of working capital, which has persisted in the current financial year for longer than in the previous year due to volume.

The remaining elements of the outlook and other assumptions for the 2018 financial year remain unchanged.

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