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GEA Group Q2 Profit, Orders Down; Revenue Up; Confirms FY19 Earnings View

German Technology company GEA Group AG (GEAGF.PK,GEAGY.PK) reported Tuesday that its second-quarter profit plunged 61 percent to 25.4 million euros from last year's 65.1 million euros.

EBITDA before restructuring was 111.2 million euros, down 21 percent from prior year's 141.9 million euros. Adjusted EBITDA margin of 8.9 percent was around 270 basis points below the value of the previous year.

Revenue, however, grew 1.7 percent to 1.25 billion euros from last year's 1.23 billion euros.

Meanwhile, order intake fell 17.1 percent to 1.15 billion euros from 1.38 billion euros last year reflecting fewer major orders due to customer delays.

Order backlog was down 5.3 percent to 2.42 billion euros.

Further, the company confirmed its fiscal 2019 outlook, despite certain special factors in the second quarter.

The company expects EBITDA before restructuring measures to be within the predicted corridor of between 450 million euros and 490 million euros in the 2019 financial year. ROCE will also remain within the forecasted range of between 8.5 and 10.5 percent.

Stefan Klebert, CEO of GEA Group, said, "..although revenue increased again last quarter, the trend in order intake mentioned above confirms our prediction that we are looking at a moderate fall in revenue for 2019 compared with the figure for the previous year."

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