GEA Group Aktiengesellschaft: GEA increases operating margin to 8.6 percent in Q2 and confirms outlook

GEA increases operating margin to 8.6 percent in Q2 and confirms outlook

Düsseldorf, July 30, 2012 - GEA's order intake grew by 8.9 percent to EUR 2,946 million in the first six months of 2012. However, it was noticeable in the second quarter that fewer major orders were recorded compared with the first quarter. The GEA Food Solutions segment that was acquired last year increased its organic order intake in the second quarter. Revenue was up 3.1 percent to EUR 1,391 million in the second quarter and 11.2 percent to EUR 2,655 million in the first half of the year.

Adjusted for purchase price allocation effects, the operating EBIT margin increased from 8.1 percent to 8.6 percent year-on-year in the second quarter. Consolidated profit climbed 41.2 percent and amounted to EUR 72.8 million in the second quarter. This corresponds to earnings per share of EUR 0.40 in the second quarter of 2012, after EUR 0.28 in the comparable prior-year period.

The settlement most recently described in the 2011 Annual Report took effect on June 11, 2012, when the contingent capital was entered in the commercial register, terminating the award proceedings that have been ongoing since 1999.

'Many business and economic indicators worsened in the second quarter of 2012 compared with the beginning of the year. However, assuming that economic conditions do not deteriorate further, we would like to use this opportunity to confirm our previous business outlook for 2012,' said Jürg Oleas, CEO of GEA Group Aktiengesellschaft.

GEA Group: Key figures
(EUR million)

All figures as of the reporting date already include the acquisitions of CFS and Bock starting from the second quarter. Staring from the second quarter 2011, these acquisitions will be reported in the figures for the period.
Q2 2012 Q2 2011 1)

Order Intake 1,401.0 1,462.5
Revenue 1,391.3 1,349.0
Order backlog 2,967.4 2,770.6
EBITDA pre purchase price allocation 2) 143.1 135.7
as % of revenue 10.3 10.1
EBITDA 142.6 116.0
EBIT pre purchase price allocation 2) 119.0 109.7
as % of revenue 8.6 8.1
EBIT 111.9 79.3
as % of revenue 8.0 5.9
EBT 94.0 62.0
Profit for the period 72.8 51.6
Earnings per share pre purchase allocation 3) 0.43 0.41
Earnings per share 3) 0.40 0.28
Working capital (reporting date) 4) 764.3 707.3
Working capital (average) 4)5) 756.3 593.2
as % of revenue 6) 13.3 12.4
Net liquidity (+)/Net debt (-) 7)8) -730.4 -698.9
ROCE in % 9)10) 12.5 11.9
ROCE in % (goodwill adjusted) 9)11) 18.8 19.4
CAPEX on property, plant and equipment 26.1 41.4
Employees (reporting date) 12) 24,488 23,098

1) Amounts adjusted due to change in accounting policy for pension
obligations and leasing obligations (Q2 report 2012 page 32 f.)
2) Before amortization and depreciation specifically of purchase
price allocations from acquisitions
3) EUR
4) Working capital = inventories + trade receivables - trade
payables - advance payments received
5) Average of the past 12 months
6) Working capital (average of the past 12 months) / revenue of
the past 12 months
7) Including discontinued operations
8) Net liquidity/debt = cash and cash equivalents + marketable
securities - liabilities to banks
9) ROCE = EBIT (sum of last 12 month, in 2010 before restructuring
expenses) / capital employed (average of the past 12 months)
10) Capital employed including goodwill from the acquisition of
the former GEA AG by the former Metallgesellschaft AG in 1999
11) Capital employed excluding goodwill from the acquisition of
the former GEA AG by the former Metallgesellschaft AG in 1999
12) Full-time equivalents (FTE) excluding vocational trainees and
inactive employment contracts

About GEA Group
GEA Group Aktiengesellschaft is one of the largest suppliers of process technology and components for the food and energy industries. As an international technology group, the Company focuses on sophisticated production processes. In 2011, GEA generated consolidated revenues in excess of EUR 5.4 billion, 70 percent of which came from the food and energy sectors, which are long-term growth industries. The group employed about 24,000 people worldwide as of June 30, 2012. GEA Group is a market and technology leader in its business areas. It is listed in Germany's MDAX stock index (G1A, WKN 660 200) and the STOXX^(R) Europe 600 Index. Further information is available on the Internet at: www.gea.com.

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