gategroup Holding AG

EANS-Adhoc: gategroup Provides Outlook Given Industry Uncertainty


--------------------------------------------------------------------------------
  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is solely responsible for the content of this
  announcement.
--------------------------------------------------------------------------------
conference call

23.11.2011

ZURICH, Nov. 23, 2011 -- Given recent public statements by industry bodies, such
as the International Air Transport Association (IATA) and major airlines,
regarding the current uncertainty in the global economy and weakening prospects
for the airline industry, gategroup is providing the following update based on
ongoing developments.

gategroup revenue through the third quarter was essentially flat compared to the
same period last year. However, on a constant currency basis, revenue was 14%
higher with significant contributions from the 2010 acquisitions in Canada and
India.

In the first half year, gategroup had identified foreign exchange effects, raw
material cost escalation and the impact of the catastrophes in Japan as factors
impacting financial performance, all of which have largely been mitigated. In
addition, the dilutive effect of the 2010 acquisitions in Canada and India was
identified. Canada remains on track with the integration plan although extra
costs were incurred as part of the preparation for and successful conclusion of
key labor negotiations. India, however, remains a concern primarily due to the
distressed state of the Indian domestic carriers and significant food cost
escalation that has continued to develop throughout 2011. Both factors are
adversely impacting the profitability of the business in India.

The Company is closely tracking the potential adverse implications of the Euro
zone turmoil and development of the global economy on fourth quarter flight and
passenger volumes. IATA has warned of a deceleration in world demand as business
and consumer confidence wanes, particularly in Europe and North America.
Relative to its internal expectations, gategroup foresees softer-than-expected
volume in the fourth quarter since its core markets are in these two regions.

On a full-year basis, the factors discussed above will drive a lower margin
outlook and lower-than-anticipated cash flow for the current year. The Company
now expects an EBITDA margin in the range of 7.4% to 7.7% for 2011 on full-year
actual revenue of between CHF 2,650 million and CHF 2,700 million (about CHF 3.0
billion in 2010 constant currencies). Based on the latest industry information,
gategroup is anticipating flat volumes across its portfolio in 2012 and no
margin improvement. gategroup has proven to be resilient in adverse industry
environments as was experienced during the severe global economic slowdown in
2008-2009, and remains confident in its business model. The outlook on 2012
Group performance will be further refined as more information becomes available
and the accuracy of the industry's assessment is confirmed.

For additional information, please see the following link on the gategroup
website:
http://www.gategroupmember.com/index.php?option=com_content&view=article&id=419&Itemid=231

IMPORTANT NOTICE

This publication may contain specific forward-looking statements, e.g.,
statements including terms like "believe", "assume", "expect" or similar
expressions. Such forward-looking statements are subject to known and unknown
risks, uncertainties and other factors which may result in a substantial
divergence between the actual results, financial situation, development or
performance of the company and those explicitly or implicitly presumed in these
statements. Against the background of these uncertainties readers should not
rely on forward-looking statements. The company assumes no responsibility to
update or revise any of these forward-looking statements or to adapt them
whether to reflect new information, future events, developments or circumstances
or otherwise.

INVITATION TO ANALYSTS AND INVESTORS

gategroup CEO Andrew Gibson and CFO Thomas Bucher invite analysts and investors
to participate in a telephone conference call regarding the Nov. 23 update.

The presentation can be accessed via webcast and dial-in teleconference at 15:00
CET on Wednesday, Nov. 23, 2011.

To listen to the live presentation via teleconference, call the dial-in number
approximately 15 minutes before the start time. Once dialed in, please follow
the instructions given over the phone.

Direct dial-in numbers:
+41 (0)91 610 56 00 (Europe)
+44 (0) 203 059 58 62 (UK)
+1 866 291 41 66 (USA - Toll-Free)
+49 (0)69 2 22 22 05 93 (Germany)

Please note that this Q&A session is for analysts and investors only.


Further inquiry note:
Contact for investors/analysts
Dagmara Wawrzonowska
Investor Relations
invest@gategroup.com
+41 43 812 5496

For media
Carol Reed
Corporate Communications
creed@gategroup.com
+41 43 812 9128

John Bronson
Corporate Communications
jbronson@gategroup.com
+41 43 812 2048

end of announcement                               euro adhoc 
--------------------------------------------------------------------------------


issuer:      gategroup Holding AG
             Balz-Zimmermannstrasse 7
             CH-8302 Kloten
phone:       +41 43 812 54 96
FAX:         +41 43 812 91 19
mail:     invest@gategroup.com
WWW:      http://www.gategroupmember.com/
sector:      Consumer Goods
ISIN:        CH0100185955
indexes:     
stockmarkets: Hauptsegment: SIX Swiss Exchange 
language:   English
 

 

 



Das könnte Sie auch interessieren: