GEA increases operating margin to 10 percent in Q3/2011
GEA recorded an order intake of EUR 1,402.8 million in the third quarter of 2011, up 21.7 percent year-on-year (organic growth: 11.4 percent). Revenue also jumped by 24.2 percent year-on-year to EUR 1,397.4 million (organic growth: 13.5 percent). Operating profit, i.e. before purchase price allocation effects, grew again in the reporting period, rising 46.8 percent to EUR 139.1 million. The corresponding EBIT margin for the GEA Group increased by 153 basis points to 10.0 percent.
Third-quarter earnings per share more than doubled, to EUR 0.47 in 2011 (from EUR 0.19 in the prior-year period), since the reorganization expenses were fully provided for in the 2010 result. After adjustments for the effects of purchase price allocations, earnings per share in the third quarter even amounted to EUR 0.50.
“Predictions concerning the development of the global economy are more difficult than in the past, nevertheless we would like to confirm our outlook for fiscal year 2011 as we gave it in the second quarter. We expect for 2011 again that the fourth quarter will be GEA’s strongest”, said Jürg Oleas, CEO of GEA Group Aktiengesellschaft.
Taking into account all acquisitions, GEA predicts an order intake in the range from EUR 5.4 million to EUR 5.6 million and revenue in the range from EUR 5.1 billion to EUR 5.3 billion. Excluding the new GEA Convenience-Food Technologies Segment (GEA CT), the company predicts an operating EBIT margin of between 9.3 and 9.5 percent. For the new GEA CT Segment, the company predicts an operating EBIT margin before non-recurring integration expenses of between 8.5 and 9.0 percent.
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