EANS-News: GESCO distinctly profitable despite recession

- Full year guidance confirmed again after nine month period

- Worst of the economic slump seems to have been overcome

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quarterly report

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.

end of announcement euro adhoc
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ots Originaltext: GESCO AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Oliver Vollbrecht

Leiter Investor Relations

T.: +49(0)202 24820 18

info@gesco.de

Branche: Economy, Business & Finance
ISIN: DE0005875900
WKN: 587590
Index: SDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade