TECHNOTRANS: GROUP COMPANY GWK AND ECONOMIC SLOWDOWN HOLD BACK BUSINESS PERFORMANCE IN THIRD QUARTER

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Growth markets with double-digit growth rates / Free cash flow positive / Board of Management adjusts annual forecast for 2019 and remains confident about 2020.

An unexpectedly weak revenue and earnings performance by the subsidiary gwk Gesellschaft Wärme Kältetechnik mbH (gwk) along with a slowdown in economic activity substantially restricted the economic performance of the technotrans Group in the third quarter of 2019. Consolidated revenue of EUR 153.4 million for the nine-month period was 5.7 percent down on the prior-year figure. Operating profit (EBIT) fell to EUR 6.6 million, representing an EBIT margin of 4.3 percent.

The main factor behind the fall in revenue and earnings was the surprisingly ongoing weak business performance of gwk. Following the ERP system changeover the company managed to increase its production output from the second to the third quarter again but fell well short of expectations for converting orders into revenue, especially at the end of the period. The Board of Management has taken further action to clear the production backlog at gwk as swiftly as possible.

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