Announcement of the financial statement for 1999
PRESS
RELEASE FROM GETINGE INDUSTRIER AB
ANNOUNCEMENT
OF THE FINANCIAL STATEMENT FOR 1999
31 JANUARY
2000
The Getinge
Group
Getinge
Industrier is an expanding medical-technical group that works in
two areas, namely products and systems for combating infection
and products and accessories for the lifting and hygiene of the
elderly and disabled. The description of business is divided into
these two areas as of this financial statement. Sterilisation and
Disinfection constitute the Infection Control business
area. The activities aimed at care of the elderly come under the Geriatrics
business area. This new form reflects a better way of showing
how the Group works with its customers, and at the same time
simplifies comparisons with other companies.
Orders
received
Orders
received by the Getinge Group rose by 14.6% totalling SEK 4,932.2
million (SEK 4,304.0 m). Adjusted for company acquisitions and
exchange rate fluctuations, orders received increased by 4.4%.
During Q4, orders received totalled SEK 1,268.3 million (SEK
1,229.6 m) – a rise of 3.1%.
Demand for the
Group’s products has been good over the past year with the
exception of the North American market. The Geriatrics business
area has seen a majority of the European markets develop
significantly, above all Southern Europe and the important
markets in Germany and the UK. As far as the developing markets
are concerned, which make up a smaller part of the business
area’s sales, volume growth has been very strong. The
Infection Control business area has seen a more stable
performance on the Western European industrial and hospital
markets, whereas the geriatric care market has seen robust
progress. The developing markets that constitute about 15% of the
business area’s volumes have performed well and above all,
demand in the Far East and Latin America was good. Excluding the
North American market the Group’s orders received rose
19.6%. Adjusted for company acquisitions and exchange rate
fluctuations, the increase was 8.2%.
The North
American market, which represents 40% of the Group’s sales,
has stagnated over the past year. In the Infection Control
business area a stronger industrial market has compensated for a
weak hospital market. Demand in the Geriatrics business area was
somewhat below last year’s level. The changes and reductions
introduced under the new federal reimbursement system for
Medicare have had a major impact this year. A majority of
suppliers in the geriatric care sector have seen a slump in
volumes, which means that this year’s level of orders
received was satisfactory as it was similar to last year’s.
Net sales
Net
sales climbed 12.4% to SEK 4,884.7 million (SEK 4,345.0
m). Adjusted for company acquisitions and exchange rate
fluctuations, net sales rose 2.7%.
Profits
The
Getinge Group’s operating profit prior to items affecting
comparability rose 6.0% to SEK 692.2 million (SEK 652.9 m), which
is equivalent to 14.2% (15.0%) of net sales.
Net financial
items totalled –SEK 55.0 million (–SEK 65.0 m), of
which net interest income/expense made up –SEK 51.7 million
(–SEK 62.7 m). The Group’s profit before tax rose 5.6%
to SEK 636.2 million (SEK 602.6 m), which is equivalent to
13.0% (13.9%) of net sales.
The return on
capital employed was 23.2% (25.0%).
Financial
position and equity/assets ratio
The
Group’s net debt was SEK 1,514.9 million (SEK 1,722.4 m).
The Group’s operating cash flow significantly improved and
was SEK 437.1 million (–SEK 13.5 m).
Shareholders’
equity at the period’s end was SEK 1,560.8 million (SEK
1,221.0 m), giving an equity/assets ratio of 35.7% (27.6%).
Investments
Net
investments in machinery, equipment and buildings, but excluding
rental equipment, totalled SEK 167.4 million (SEK 131.8 m). The
year’s increase is mainly due to investment in production
facilities and production tools, as well as IT investments.
Staff
The
number of employees was 3,812 (3,724), of whom 824 (794) are in
Sweden.
Effect of
the Y2K problem
The
Getinge Group has not had any Y2K-related disruptions. The
changeover to the new millennium was problem-free for the
Group’s own activities and the products it manufactures.
Infection Control business
area
The business area provides
customers in industry and in the health and geriatric care
sectors with comprehensive solutions for preventing the emergence
and spread of infections. Products are marketed under the brand
name "Getinge". The business area consists of two
product lines, Sterilisation and Disinfection.
| INFECTION
CONTROL |
1999 |
1998 |
Change |
|
Q4 1999 |
Q4 1998 |
Change |
| Orders
received, SEK Million |
2.884,6 |
2.524,1 |
14,3% |
|
755,5 |
725,8 |
4,1% |
| Net sales |
2.811,1 |
2.615,7 |
7,5% |
|
894,6 |
879,4 |
1,7% |
| Gross profit |
1.108,7 |
1.028,8 |
7,8% |
|
363,9 |
345,8 |
5,2% |
| Gross
margin, % |
39,4% |
39,3% |
0,1% |
|
40,7% |
39,3% |
1,4% |
| Operating
cost, SEK Million |
-743,3 |
-665,8 |
11,6% |
|
-213,8 |
-208,1 |
2,7% |
| Operating
profit |
365,4 |
363,0 |
0,7% |
|
150,1 |
137,7 |
9,0% |
| Operating
margin, % |
13,0% |
13,9% |
-0,9% |
|
16,8% |
15,7% |
1,1% |
Adjusted for corporate
acquisitions and currency fluctuations, the business area’s
orders received rose 5.9%, while net sales were at last
year’s level.
In the largest customer sector,
health care, there was a weak start to the year on all markets.
After this, demand gradually improved and for the year as a whole
organic growth was at a satisfactory level. There was a good
start to the year for the orders received figure on the
industrial market but it got weaker towards the end of the year.
The amount of inquiries from industrial customers continued to be
very good, but a number of decisions about orders and deliveries
have been put on hold. The volume trend has been good in the
geriatric care customer segment.
The operating profit is at last
year’s level. Inferior results from the American activities
and a weaker industrial market have been compensated by strong
volume growth in the Disinfection product line, as well as a
profit contribution from last year’s acquisitions.
| Sterilisation |
1999 |
1998 |
Change |
|
Q4 1999 |
Q4 1998 |
Change |
| Orders
received, SEK Million |
1.942,6 |
1.726,0 |
12,5% |
|
482,9 |
495,3 |
-2,5% |
| Net sales |
1.902,7 |
1.838,6 |
3,5% |
|
602,5 |
637,2 |
-5,4% |
Adjusted for corporate
acquisitions and currency fluctuations, the product line’s
orders received rose 2.6%, while net sales fell 5.2%.
| Disinfection |
1999 |
1998 |
Change |
|
Q4
1999 |
Q4
1998 |
Change |
| Orders
received, SEK Million |
941,9 |
798,1 |
18,0% |
|
272,5 |
230,5 |
18,2% |
| Net
sales |
908,4 |
777,1 |
16,9% |
|
292,1 |
242,2 |
20,6% |
Adjusted for corporate
acquisitions and currency fluctuations, the product line’s
orders received rose 13.1%, and net sales went up 12.9%.
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