EANS-News: GESCO is starting into the upturn

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Subtitle: - Incoming orders increase significantly in the first quarter
- Full year guidance confirmed
- Positive development continues in the second quarter

Wuppertal (euro adhoc) - Wuppertal, 12 August 2010 - In the first quarter (1
April to 30 June 2010) of financial year 2010/2011 (1 April 2010 to 31 March
2011), GESCO Group´s business recovered significantly. Whereas in financial year
2009/2010, incoming orders dropped lower and lower in each quarter, this trend
reversed itself in the first quarter of 2010/2011. This positive development
also continued in the second quarter.

The Group´s incoming orders climbed by 42.9 % to EUR 87.8 million in the first
quarter, which encompasses the operating months January to March of the
subsidiaries (previous year´s period: EUR 61.4 million). Group sales went up by
4.3 % to EUR 76.8 million (previous year´s period: EUR 73.6 million). While
material expenditure went up, personnel expenditure went down slightly, despite
increased sales. Other operating expenditure in the first quarter includes a
one-off effect of around EUR 0.6 million, which is not going to repeat itself in
the following quarters. Earnings before interest, taxes, depreciation and
amortisation (EBITDA) amounted to EUR 7.3 million (EUR 7.5 million). As
write-downs were slightly up, EBIT (earnings before interest and taxes) went
down from EUR 4.9 million in the previous year to EUR 4.6 million. The financial
result improved from EUR -0.9 million to EUR -0.7 million. Group net income
after minority interest totalled EUR 2.4 million compared to EUR 2.5 million in
the first quarter of the previous year. This equates to earnings per share
according to IFRS of EUR 0.81 (EUR 0.83). Without the above-mentioned one-off
effect, earnings figures would have developed positively and risen higher than
sales.

The Group employed 1,731 staff on the reporting date compared to 1,762 on the
previous reporting date. Figures for the same period in the previous year did
not yet include the 42 employees of Georg Kesel GmbH & Co. KG, which was
acquired in April 2009.

Business continued to develop positively in the second quarter of financial year
2010/2011, which encompasses the operating months April to June of the
subsidiaries. Incoming orders amounted to EUR 91.4 million, sales were in the
region of EUR 79.8 million. Both figures were higher than in the first quarter
of financial year 2010/2011.

Based on the available information, the company is confirming its forecast from
29 June 2010. It projects Group sales between EUR 290 million and EUR 320
million and Group net income after minority interest of between EUR 9 million
and EUR 11 million. This corresponds to earnings per share according to IFRS of
between EUR 2.98 and EUR 3.64.

Dr. Hans-Gert Mayrose, member of the Executive Board, on the first quarter:
"GESCO Group has left the recession behind. At some subsidiaries it takes
several months for incoming orders to translate into sales, but the book to bill
ratio is above 1 - a sign of further growth."

Online at www.gesco.de: Complete interim report and video webcast with
commentary by Dr. Mayrose on the I. quarterly report 2010/2011.

Further inquiry note:
Oliver Vollbrecht
Leiter Investor Relations
T.: +49(0)202 24820 18
[email protected]
end of announcement euro adhoc
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issuer: GESCO AG
Döppersberg 19
D-42103 Wuppertal
phone: +49(0)202 24820 0
FAX: +49(0)202 24820 49
mail: [email protected]
WWW: http://www.gesco.de
sector: Economy, Business & Finance
ISIN: DE0005875900
indexes: SDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English

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