In the third quarter, GEA primarily benefits from its strong service business - financial experts analyze developments and the outlook

In the third quarter, GEA primarily benefits from its strong service business - financial experts analyze developments and the outlook

According to a report by www.finanzen.net GEA, a major plant manufacturer, benefited from strong service business in the third quarter. CEO Stefan Klebert announced that the annual targets have been confirmed and sees the group “on track” to achieve the medium-term goals by 2026. A new share buyback program was also announced. Despite the positive quarterly results, the share price had lost value compared to the beginning of the year.

Analysts expressed concerns about incoming orders, which were around nine percent below the previous year. However, it was pointed out that the disappointing order development was almost entirely due to currency effects. In some business areas, such as liquids and powders as well as in the dairy industry, orders fell significantly.

Despite stagnating sales, earnings before interest, taxes, depreciation and amortization (Ebitda) and before restructuring expenses increased. Net profit also increased compared to the previous year.

The board expects internal growth of more than eight percent for 2023 and plans to buy back its own shares for up to 400 million euros. The shares are to be withdrawn, which could increase the value of the securities of the remaining shareholders.

As an economic expert and analyst, you can use this information to predict that the company is solidly positioned and that investments in its own shares and the planned growth strategy could have a positive impact on the performance of the shares. Despite the uncertainties in the market environment, GEA appears to be able to achieve its financial goals and grow in the long term.