German provider of systems for food and energy industries GEA Group AG (GEAGY.PK, GEAGF.PK) on Monday maintained its fiscal 2013 forecast of higher EBITDA, a key earnings metric, and moderate revenue growth, while announcing higher net profit for fiscal 2012. Further, in 2014, the company projects continued growth in consolidated revenue and a further increase in EBITDA.
For fiscal 2013, the company continues to expect EBITDA to be about 700 million euros, higher than around 600 million euros in the year 2012. The company believes that demand in its sales markets will match 2012 levels.
GEA projects a sharp rise in revenue and an operational turnaround in the GEA food solutions segment, while GEA heat exchangers segment will continue to face stagnating markets in 2013, resulting in slower revenue and profit growth. In all other segments, the company projects stable profit margins with moderate volume growth.
From a regional perspective, the company expects that the share accounted for Western Europe will record a slight decline over the medium term, whereas business in the North America and Asia Pacific regions will grow in importance.
In terms of price quality, the company also expects that market environment to be unchanged as against 2012.
In addition, GEA said it will continue its strategy of acquiring companies that provide with an entry into new markets or that selectively expand its range of offerings in existing markets.
In the year 2012, GEA's profit increased 1.3 percent to 316.6 million euros from the prior year's 312.6 million euros. Earnings per share, meanwhile, edged down 0.3 percent to 1.69 euros from 1.70 euros last year. Earnings per share pre purchase price allocation also dropped 1.6 percent to 1.88 euros this year, from 1.91 euros a year back.
As announced earlier, earnings before tax or EBT for the full year declined 7.9 percent to 366.9 million euros and earnings before interest, tax, depreciation and amortization or EBITDA dropped 2 percent to 597.8 million euros.
Operating EBITDA, or earnings before effect of purchase price allocation and one-offs in the GEA Food Solutions segment, increased 5.2 percent, while operating EBITDA margin remained flat with last year's 11.6 percent.
Group revenue, however, increased 5.6 percent to 5.72 billion euros and order intake increased 5.2 percent to 5.90 billion euros, benefited by small and medium-sized orders. According to the firm, portfolio changes contributed 2.5 percent to the increase, and changes in exchange rate benefited by 2.6 percent. Organic order intake edged up 0.1 percent.
In the fourth quarter, order intake was 1.48 billion euros, down 1.6 percent from last year, exclusively attributable to substantial major orders in the previous year.
The company repeated that its Executive and Supervisory Boards will propose an unchanged dividend of 0.55 euros to the Annual General Meeting for the increased number of shares, which now total 192.5 million.
On Frankfurt's Xetra, GEA shares are currently trading at 26.17 euros, down 0.53 euros or 1.99 percent.
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