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GEA Group Aktiengesellschaft: GEA increases revenue as well as profitability and implements strategy program (news with additional features)

DGAP-News: GEA Group Aktiengesellschaft / Key word(s): Quarter Results
GEA Group Aktiengesellschaft: GEA increases revenue as well as
profitability and implements strategy program (news with additional
features)

29.07.2015 / 07:30

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GEA increases revenue as well as profitability and implements strategy
program

Düsseldorf, July 29, 2015 - In the second quarter 2015 revenue of GEA
exceeded the high level seen in the previous year by 3 percent. The service
business demonstrated healthy growth. The order intake declined slightly
due to the limited number of major orders. However, the basic business saw
stable growth rates in both of GEA's business areas. GEA's operating profit
improved again. This shows that the increases in efficiency resulting from
the "Fit for 2020" program have begun to have an impact. Both operating
EBITDA and the operating EBITDA margin hit all-time highs for a second
quarter. Non-recurring expenses of about EUR 134 million were recognized in
the reporting quarter. This figure includes restructuring expenses of
around EUR 115 million for the "Fit for 2020" program. Consolidated profit
in the last quarter was negative overall as a result of these substantial
non-recurring expenses.

"Unfortunately, we were unable to escape the effects of the renewed decline
in momentum in some of our markets in the reporting period. However, it is
encouraging to see that our targeted measures are paying off and that we
further increased profitability. For example, we have reduced our workforce
by around 300 employees since the beginning of the year. This reduction is
partly attributable to our "Fit for 2020" program. The workforce reduction
and the initial recognition of material non-recurring expenses for this
strategic project show that we are implementing it systematically. We are
on track with this initiative," said GEA CEO Jürg Oleas.

In addition, three acquisitions were made in the past quarter, two of which
have already been completed. With these acquisitions, which together
generated revenue of almost EUR 100 million in 2014, GEA implements its
strategy of closing gaps in technology by acquiring specialized companies,
and of expanding the product portfolio in terms of covering all steps in
the process.

In addition to its operating activities, GEA has made substantial progress
with its strategic realignment as part of the "Fit for 2020" initiative in
the second quarter, taking on a new group structure. On the basis of a