Gesco - Strategic portfolio transition in progress

Donnerstag, 05.09.2019 10:40 von Edison Investment Research

GESCO continues to implement the NEXT LEVEL strategy it launched in autumn 2018 after onboarding the new CEO. After a strong FY18, the company’s recent results were affected by broader economic headwinds. Although incoming orders in Q119 increased 4.3% y-o-y to €156.9m, preliminary Q2 numbers reveal a decline to €130m from a record-high €162.6m in Q218. The trend seems to reflect the recent production slowdown in Germany, with the Mechanical Engineering Industry Association (VDMA) reducing its growth forecast for 2019 from + 1% to -2% in July 2019. Nevertheless, has GESCO reiterated its FY19 guidance.