EANS-News: GESCO distinctly profitable despite recession

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Subtitle: - Full year guidance confirmed again after nine month period
- Worst of the economic slump seems to have been overcome

Wuppertal (euro adhoc) - Wuppertal, 3 February 2010 - Despite the severe
recession in Germany and many export markets, GESCO Group can look back on a
distinctly profitable third quarter and nine month period for the financial year
2009/2010 (1 April 2009 - 31 March 2010). Since the third quarter, business
activities have been stabilising and customer enquiries have started to pick up
again. This is an indication that declines have come to an end and that the
worst of the economic slump has been overcome.

In the first nine months of the financial year 2009/2010, GESCO Group received
consolidated incoming orders of EUR 169.0 million (previous year: EUR 305.9
million). Group sales fell by 29.5 %, from EUR 293.2 million to EUR 206.7
million. These figures already include declines in material prices of around EUR
25 million.

While margins in the previous year´s period benefited from extremely high
capacity utilisation levels and subsequent economies of scale, key earnings
figures in the reporting period consequently fell more sharply than sales
revenues. Earnings before interest, taxes, depreciation and amortisation
(EBITDA) amounted to EUR 19.6 million (EUR 40.3 million). Amortisation and
depreciation was roughly at the same level as in the previous year. As a result,
earnings before interest and taxes (EBIT) decreased further to EUR 11.5 million
(EUR 32.6 million). The financial result improved from
EUR -2.8 million to EUR -2.0 million. Group net income after minority interest
reached EUR 6.1 million (EUR 18.4 million). Earnings per share totalled EUR 2.01
(EUR 6.07) pursuant to IFRS.

The Group´s workforce dropped slightly and amounted to 1,765 employees in the
reporting period (1,780). This figure includes 45 employees of Georg Kesel GmbH
& Co. KG, who were not yet included in the previous year´s figures.

Dr. Hans-Gert Mayrose, member of the Executive Board, on business development:
"While many German manufacturing companies, particularly in the mechanical
engineering sector, are currently struggling and incurring losses, GESCO Group
is distinctly profitable despite the severe recession. In the third quarter,
there was a slight recovery in business activities, which is likely to have
continued in the fourth quarter. This confirms our impression that the worst of
the economic slump has been overcome."

At the accounts press conference on 25 June 2009, Group sales were forecast to
total between EUR 280 million and EUR 310 million, Group net income after
minority interest between EUR 7 million and EUR 10.5 million, and earnings per
share between EUR 2.31 and EUR 3.47. In the interim report for the first six
months in November, the Group announced that Group net income after minority
interest would come in at around the middle of the previously predicted range.
This forecast can now be confirmed on the basis of the figures for the first
nine months.

The complete III. quarterly report 2009/2010 is available online at
www.gesco.de.

About GESCO AG
GESCO AG is a financial holding for a group of industrial SMEs. It acquires
successful, established niche providers, mainly through business succession
agreements, with the objective of retaining long-term involvement in the
companies while developing their business. GESCO AG is listed in the Prime
Standard and SDAX. It offers private and institutional investors the opportunity
to access SMEs.

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

Digitale Pressemappe: http://www.ots.at/pressemappe/EASY_13481

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