Announcement of the financial statements for 2000
- Strong profit in Q4. The
operating profit excluding SPP’s refunds rose by
15.4% to SEK 277.7 million (240.6)
- The operating profit for
the full year excluding SPP’s refunds at same level
as last year
- Orders received totalled
SEK 5,243.3 million (4,932.2)
- Net sales amounted to SEK
5,253.5 million (4,884.7)
- The profit before tax
excluding SPP’s refunds was SEK 600.5 million
(636.2)
- The EPS after full tax was
SEK 10.30 (10.52)
- The proposed dividend per
share is SEK 3.50 (3.50)
- The acquisition of Maquet
and ALM makes Getinge the world’s leader in surgical
systems
The quarter
The year’s Q4 performance was exceptional for all areas
regarding profits and volumes and was the best in the
Group’s history.
The Extended Care business
area’s volumes have progressed particularly well on the UK
and US markets, which both had a weak start to the year. Demand
on the other European markets has continued to progress strongly.
The profit for Q4 is very good and means that the profit for the
year is at last year’s level after a poor start to the year.
The Infection Control business
area finished the year well by reporting strong volumes and good
demand continuing in the US from both hospital and life science
customers. Markets in Western Europe reported better order
positions than in previous quarters. The business area’s Q4
profit was satisfactory and continues to be affected by
conditions in the US, where growth has been rapid during the
year, but where operating margins are lower.
Outlook
The level of demand in the Extended Care business area has
significantly improved in the US market. New product launches and
a gradual expansion of the sales organization means the business
area looks set for a positive trend in the coming year.
The assessment for the Infection
Control business area is that the US and developing markets will
progress well, while the demand level in Western Europe continues
to be difficult to assess. The effects of the cost-cutting
measures carried out during the year coupled with new product
launches will contribute to improve the company’s
competitive strength.
The recently formed Surgical
Systems business area, which has rapidly grown to become a
significant part of the Group’s business, is expected to
contribute to an improved EPS over the coming year.
Surgical Systems business area
The acquisition of the world’s two leading manufacturers of
operating tables and surgical lighting systems, respectively, has
very rapidly laid the foundations for an attractive and expansive
business area – Surgical Systems.
The business area’s aim is to
provide its customers with effective, flexible and ergonomic
product systems for surgical workplaces. The systems consist of
operating tables, surgical lights and ceiling service units.
The ambition is to build up a
world-leading position in surgical systems equipment and to
create our own, effective sales and marketing organization on the
important European, US and Japanese markets.
Following the acquisitions of
Maquet and ALM, the Group’s sales in the business area will
be over SEK 2 billion. Market shares for operating tables,
surgical lights and ceiling service units will be 40%, 20% and 6%
respectively and make the business area one of the global leaders
in surgical systems.
A large part of the market for
surgical systems and related products can be regarded largely as
unstructured and the opportunities of continuing to expand via
acquisitions are considered to be good.
Synergy and structure
The combination of Getinge, Maquet and ALM, creates excellent
conditions for rationalization and continuing to boost volumes.
The business area intends to co-ordinate and optimise its
production and distribution structures which will lead to annual
cost savings of around SEK 140 –150 million annually over a
two-year period. Besides cost synergy, volume synergy will also
have a positive impact on the business area’s profit figure
over a long-term perspective. In deciding to focus the business
area’s activities on operating tables, surgical lights and
ceiling service units, Ortho Maquet which develops and markets
surgical robotic systems for orthopaedic implant surgery, will be
sold.
Financial information
The total purchase price for the acquisition of Maquet and ALM is
around SEK1,150 million.
The reserve for restructuring will
amount to maximum around SEK 575 million. The cash flow-affecting
part of the restructuring reserve is about SEK 385 million. The
goodwill value is estimated at SEK 1,470 million. Maquet’s
net sales for the last financial year stood at about SEK 1,310
million. The operating profit was about SEK 120 million
(excluding Ortho Maquet). The comparative figures for ALM are net
sales of around SEK 660 million and an operating profit of around
SEK 45 million.
Maquet’s balance sheet has
been included in the consolidated accounts as of 31 December
2000. Maquet’s profit will be included in the consolidated
income statement from 1 January 2001 and ALM’s profit from 1
February 2001.
Infection Control business area
| Market
developments |
2000 |
1999 |
Change |
2000 |
1999 |
Change |
| Orders
received per market |
Q4 |
Q4 |
|
FY |
FY |
|
| Western
Europe |
353.4 |
333.9 |
5.8% |
1,272.8 |
1,314.3 |
-3.2% |
| USA and
Canada |
353.7 |
331.6 |
6.7% |
1,298.8 |
1,146.2 |
13.3% |
| Asia/Australia |
59.7 |
55.5 |
7.6% |
265.2 |
298.1 |
-11.0% |
| Rest of the
world |
50.0 |
34.4 |
45.3% |
208.0 |
125.9 |
65.2% |
| Business
area total |
816.8 |
755.4 |
8.1% |
3,044.8 |
2,884.5 |
5.6% |
| adjusted
for currency flucs.& corp.acqs |
|
4.5% |
|
|
3.0% |
Orders received were good on most
markets in Q4. On the North American market the medical care and
life science markets continued to perform well. Demand in Western
Europe continued to be difficult to judge. During the quarter
infection risk in the medical care sector became an eye-catcher
through the debate on mad cow disease that sprang up in Western
Europe. In the UK a concrete decision has been taken about
raising allowances for modernising infection-combating equipment
in medical care facilities.
| Results |
2000 |
1999 |
Change |
2000 |
1999 |
Change |
| |
Q4 |
Q4 |
|
FY |
FY |
|
| Net sales,
SEK Million |
983.8 |
894.7 |
10.0% |
3,081.2 |
2,811.1 |
9.6% |
| adjusted
for currency flucs.& corp.acqs |
|
7.2% |
|
|
7.2% |
| Gross profit |
379.3 |
352.1 |
7.7% |
1,135.0 |
1,084.6 |
4.6% |
| Gross
margin % |
38.6% |
39.4% |
-0.8% |
36.8% |
38.6% |
-1.8% |
| Operating
cost, SEK Million |
-218.4 |
-202.3 |
8.0% |
-767.5 |
-719.3 |
6.7% |
| Operating
profit 1) |
160.9 |
149.9 |
7.3% |
367.5 |
365.4 |
0.6% |
| Operating
margin % |
16.4% |
16.8% |
-0.4% |
11.9% |
13.0% |
-1.1% |
| 1)
Excluding SPP's refunds |
|
|
|
|
|
|
The improvement in the operating
profit in Q4 was 7.3% and is an effect of increased volumes. The
deterioration in the business area’s operating margin is
attributable to the fact that the North American business, where
the operating margin is lower, accounts for a growing part of
invoiced sales.
Extended Care business area
| Market
developments |
2000 |
1999 |
Change |
2000 |
1999 |
Change |
| Orders
received per market |
Q4 |
Q4 |
|
FY |
FY |
|
| USA and
Canada |
214.2 |
167.5 |
27.9% |
770.5 |
744.2 |
3.5% |
| Great
Britain |
170.8 |
124.2 |
37.5% |
568.5 |
503.4 |
12.9% |
| Germany |
60.4 |
64.8 |
-6.8% |
237.2 |
242.2 |
-2.1% |
| Other
Western Europe |
159.2 |
115.2 |
38.2% |
477.7 |
414.3 |
15.3% |
| Rest of the
world |
23.2 |
21.1 |
10.0% |
83.8 |
77.5 |
8.1% |
| Business
area total |
627.8 |
492.8 |
27.4% |
2,137.7 |
1,981.6 |
7.9% |
| adjusted
for currency flucs.& corp.acqs |
|
9.7% |
|
|
0.9% |
The volume trend was very strong
in Q4 and is attributable to a market recovery in both the UK and
the US , which started in Q3.The Western European markets also
saw a positive volume trend in Q4.
| Results |
2000 |
1999 |
Change |
2000 |
1999 |
Change |
| |
Q4 |
Q4 |
|
FY |
FY |
|
| Net sales,
SEK Million |
633.5 |
514.8 |
23.1% |
2,110.9 |
2,007.7 |
5.1% |
| adjusted
for currency flucs.& corp.acqs |
|
7.2% |
|
|
-1.8% |
| Gross profit |
313.6 |
270.7 |
15.8% |
1,042.3 |
1,051.6 |
-0.9% |
| Gross
margin % |
49.5% |
52.6% |
-3.1% |
49.4% |
52.4% |
-3.0% |
| Operating
cost, SEK Million |
-198.7 |
-182.1 |
9.1% |
-719.4 |
-731.2 |
-1.6% |
| Operating
profit 1) |
114.9 |
88.6 |
29.7% |
322.9 |
320.4 |
0.8% |
| Operating
margin % |
18.1% |
17.2% |
0.9% |
15.3% |
16.0% |
-0.7% |
| 1)
Excluding SPP's refunds |
|
|
|
|
|
|
The strong rise in volumes has
meant that the operating profit for Q4 climbed by 29.7%. The
lower gross margin is related to the integration of Parker Bath,
which generally has a lower gross margin as well as the strong
pound, which has had a negative effect on the Patient Handling
and Wound Care business units.
Acquisition
The integration of Parker Bath, which was acquired in September,
is going according to plan. Parker’s sales companies in
France, the US and UK have been wound up and integrated in the
business area’s existing marketing organization.
Medical
The independent Medical product unit that includes the companies
LIC Audio and NeuroMédica reported net sales of SEK 61.4 million
(65.9). The operating profit excluding SPP’s refunds was SEK
6.6 million (6.4).
Financial position and
equity/assets ratio
The Group’s net debt was SEK 3,819.8 million (1 514.9) on 31
December. Shareholders’ equity was SEK 1,931.0 million (1
560.8), giving an equity/assets ratio of 24.0% (35.7%) and a
debt/equity ratio of 1.98 times (0.97). After the new share issue
has been carried out, and using estimates for the profit and cash
flow for 2001, the equity/assets and debt/equity levels will lie
between 30 – 35% and 1.45 –1.55 times, respectively.
New share issue
Part of the financing of the acquisition of Maquet and ALM will
be through a new share issue to be carried out in the first
four-month period of 2001. The new issue is expected to raise
about 500 million and is guaranteed. The terms of the issue will
be released in February and an extraordinary general meeting will
be held at the beginning of March 2001.
Dividend
The Board of Directors and President propose that a dividend of
SEK 3:50 (3:50) per share be paid for 2000, amounting to a total
of SEK 159.0 million. The proposed record date is 26 April 2001.
VPC expects to forward the dividend to shareholders on 2 May
2001.
AGM
Getinge Industrier’s AGM will be held on 23 April 2001 at 4
p.m. in Getinge. The Annual Report will be sent to shareholders
two weeks before the AGM.
Shareholders wishing to
participate at the AGM must be registered in the register of
shareholders kept by VPC AB, the Swedish Central Securities
Depository, no later than 12 April 2001 and shall notify Getinge
Industrier's head office of their intention to participate, no
later than 17 April 2001.
Next report
The next financial report from the Getinge Group (Q1) will be
released on 23 April 2001.
Getinge, 25 January 2001
Johan Malmquist
President and CEO
A conference call will take
place today at 15.00 CET. To take part please call 0044 (0)20
8240 8245, password: Getinge.
| The
Group: Income Statements |
2000 |
1999 |
Change |
2000 |
1999 |
Change |
| SEK
Million |
Q4 |
Q4 |
|
FY |
FY |
|
| Net sales
1) |
1,633.3 |
1,428.9 |
14.3% |
5,253.5 |
4,884.7 |
7.6% |
| Cost of
goods sold 2) |
-934.8 |
-799.6 |
16.9% |
-3,056.2 |
-2,727.0 |
12.1% |
| Gross
profit |
698.5 |
629.3 |
11.0% |
2,197.3 |
2,157.7 |
1.8% |
| Gross
margin |
42.8% |
44.0% |
-1.2% |
41.8% |
44.2% |
-2.4% |
| Operating
cost 2) |
-420.8 |
-388.7 |
8.3% |
-1,500.3 |
-1,465.5 |
2.4% |
| Items
affecting comp. (SPP) |
23.2 |
– |
– |
23.2 |
– |
– |
| Operating
profit 3) |
300.9 |
240.6 |
25.1% |
720.2 |
692.2 |
4.0% |
| Operating
margin |
18.4% |
16.8% |
1.6% |
13.7% |
14.2% |
-0.5% |
| Interest
income |
5.8 |
4.3 |
|
18.7 |
25.9 |
|
| Interest
expense |
-31.9 |
-17.9 |
|
-108.3 |
-77.6 |
|
| Other
financial items |
-2.8 |
0.8 |
|
-6.4 |
-3.3 |
|
| Ass.companies'
profit/loss |
-0.5 |
-0.1 |
|
-0.5 |
-1.0 |
|
| Profit
before tax |
271.5 |
227.7 |
19.2% |
623.7 |
636.2 |
-2.0% |
| Tax |
-67.9 |
-56.3 |
|
-155.9 |
-158.5 |
|
| Net
profit |
203.6 |
171.4 |
18.8% |
467.8 |
477.7 |
-2.1% |
| |
|
|
|
|
|
|
| 1)
Adjusted for currency fluctuations and company
acquisitions |
|
|
|
| the net
sales' change is |
|
|
6.8% |
|
|
3.3% |
| 2)
Due to the reclassification of certain costs, some minor
transfers |
|
|
|
|
| have
been made in the comparison from operating cost to cost
of goods sold. |
|
|
| 3)
Operating profit is charged with |
|
|
|
|
|
|
| —
amortisation on goodwill |
-18.0 |
-15.0 |
|
-65.8 |
-60.7 |
|
| —
depr. on other fixed assets |
-33.7 |
-31.9 |
|
-129.3 |
-127.5 |
|
| |
-51.7 |
-46.9 |
|
-195.1 |
-188.2 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Quarterly
results |
1998 |
1999 |
1999 |
1999 |
1999 |
2000 |
2000 |
2000 |
2000 |
| SEK
Million |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
| Net sales |
1,427.6 |
1,183.1 |
1,197.9 |
1,074.8 |
1,428.9 |
1,167.9 |
1,251.6 |
1,200.7 |
1,633.3 |
| Cost of
goods sold |
-807.2 |
-644.5 |
-660.7 |
-622.2 |
-799.6 |
-654.5 |
-745.7 |
-721.2 |
-934.8 |
| Gross profit |
620.4 |
538.6 |
537.2 |
452.6 |
629.3 |
513.4 |
505.9 |
479.5 |
698.5 |
| Operating
cost |
-401.5 |
-361.2 |
-372.9 |
-342.7 |
-388.7 |
-361.4 |
-356.6 |
-361.5 |
-420.8 |
| Items
affecting comp. |
|
|
|
|
|
|
|
|
23.2 |
| Operating
profit |
218.9 |
177.4 |
164.3 |
109.9 |
240.6 |
152.0 |
149.3 |
118.0 |
300.9 |
| Financial
net |
-18.5 |
-16.0 |
-8.4 |
-17.8 |
-12.8 |
-16.4 |
-24.2 |
-26.5 |
-28.9 |
| Ass.comp.s'
profit/loss |
-0.5 |
-0.3 |
-0.3 |
-0.3 |
-0.1 |
0.0 |
0.0 |
0.0 |
-0.5 |
| Profit
before tax |
199.9 |
161.1 |
155.6 |
91.8 |
227.7 |
135.6 |
125.1 |
91.5 |
271.5 |
| Tax |
-40.7 |
-40.2 |
-39.0 |
-23.0 |
-56.3 |
-33.9 |
-31.3 |
-22.8 |
-67.9 |
| Net profit |
159.2 |
120.9 |
116.6 |
68.8 |
171.4 |
101.7 |
93.8 |
68.7 |
203.6 |
| |
|
|
|
|
|
|
|
|
|
| The
Group: Balance Sheets |
|
|
| Assets
SEKMillion |
31 Dec 2000 |
31 Dec 1999 |
| Goodwill |
2,450.9 |
1,012.7 |
| Fixed assets |
1,619.5 |
815.6 |
| Stock-in-trade |
1,268.7 |
765.3 |
| Receivables |
2,456.9 |
1,625.1 |
| Liquid
assets |
235.4 |
158.8 |
| |
|
|
| Total
assets |
8,031.4 |
4,377.5 |
| |
|
|
| Shareholders'
equity & Liabilities |
|
|
| Shareholders'
equity |
1,931.0 |
1,560.8 |
| Minority
interest |
8.8 |
– |
| Interest
bearing liabilities |
4,055.2 |
1,673.7 |
| Non-interest
bearing liabilities |
2,036.4 |
1,143.0 |
| |
|
|
| Total
Equity & Liabilities |
8,031.4 |
4,377.5 |
| The
Group: Cash flow |
2000 |
1999 |
2000 |
1999 |
| SEK
Million |
Q4 |
Q4 |
FY |
FY |
| Operations |
|
|
|
|
| Operating
profit |
300.9 |
240.6 |
720.2 |
692.2 |
| Depreciation |
51.8 |
46.9 |
195.1 |
188.2 |
| Financial
items |
-28.9 |
-12.8 |
-96.0 |
-55.0 |
| Share in
ass. companies' profit/loss |
-0.5 |
-0.1 |
-0.5 |
-1.0 |
| Taxes paid |
-36.9 |
-21.6 |
-120.8 |
-100.3 |
| Cash flow
before changes in |
|
|
|
|
| working
capital |
286.4 |
253.0 |
698.0 |
724.1 |
| Changes
in working capital |
|
|
|
|
| Stock-in-trade |
27.3 |
60.5 |
-106.4 |
7.8 |
| Rental
equipment |
-4.9 |
-2.2 |
-25.6 |
-15.7 |
| Current
receivables |
-208.9 |
-150.2 |
-263.3 |
40.7 |
| Current
operating liabilities |
20.4 |
87.8 |
-48.4 |
-33.6 |
| Restructuring
reserves, utilised |
-16.7 |
-44.3 |
-55.1 |
-118.8 |
| Cash flow
before investments |
103.6 |
204.6 |
199.2 |
604.5 |
| Direct net
investments in machinery, |
|
|
|
|
| equipment
and buildings |
-30.2 |
-52.8 |
-110.3 |
-167.4 |
| Operating
cash flow |
73.4 |
151.8 |
88.9 |
437.1 |
| Net impact
of company acquisitions and |
|
|
|
|
| disposal of
operations |
-1,996.7 |
-14.5 |
-2,114.5 |
-35.4 |
| Change in
long-term receivables |
121.4 |
13.6 |
-32.8 |
15.8 |
| Change in
deferred tax |
-17.9 |
-41.2 |
-30.2 |
-43.2 |
| Dividend
paid |
|
|
-159.0 |
-147.6 |
| Translation
differences |
-50.4 |
-21.0 |
-57.3 |
-19.2 |
| Decrease
+/Increase - in net debt |
-1,870.2 |
88.7 |
-2,304.9 |
207.5 |
| Orders
received |
2000 |
1999 |
Change |
Adj f acq's |
2000 |
1999 |
Change |
Adj f acq's |
| per
business unit |
Q4 |
Q4 |
|
& curr.fluct's |
FY |
FY |
|
& curr.fluct's |
| Sterilization |
550.1 |
482.9 |
13.9% |
9.7% |
2,088.7 |
1,942.6 |
7.5% |
4.0% |
| Disinfection |
266.7 |
272.5 |
-2.1% |
-4.6% |
956.1 |
941.9 |
1.5% |
0.8% |
| Infection
Control total |
816.8 |
755.4 |
8.1% |
4.5% |
3,044.8 |
2,884.5 |
5.6% |
3.0% |
| Hygiene
Systems |
275.8 |
216.0 |
27.7% |
4.9% |
899.7 |
790.3 |
13.8% |
6.4% |
| Patient
Handling |
225.2 |
183.9 |
22.5% |
13.3% |
797.0 |
745.1 |
7.0% |
1.3% |
| Wound Care |
126.8 |
92.9 |
36.5% |
13.3% |
441.0 |
446.2 |
-1.2% |
-9.5% |
| Extended
Care total |
627.8 |
492.8 |
27.4% |
9.7% |
2,137.7 |
1,981.6 |
7.9% |
0.9% |
| Medical |
16.1 |
20.1 |
-19.9% |
-19.7% |
60.8 |
66.1 |
-8.0% |
-6.7% |
| |
1,460.7 |
1,268.3 |
15.2% |
6.2% |
5,243.3 |
4,932.2 |
6.3% |
2.0% |
| |
|
|
|
|
|
|
|
|
| Net
sales |
2000 |
1999 |
Change |
Adj f acq's |
2000 |
1999 |
Change |
Adj f acq's |
| per
business unit |
Q4 |
Q4 |
|
& curr.fluct's |
FY |
FY |
|
& curr.fluct's |
| Sterilization |
665.4 |
602.6 |
10.4% |
7.2% |
2,111.3 |
1,902.7 |
11.0% |
7.7% |
| Disinfection |
318.4 |
292.1 |
9.0% |
7.3% |
969.9 |
908.4 |
6.8% |
6.1% |
| Infection
Control total |
983.8 |
894.7 |
10.0% |
7.2% |
3,081.2 |
2,811.1 |
9.6% |
7.2% |
| Hygiene
Systems |
300.9 |
225.2 |
33.6% |
11.4% |
904.8 |
814.4 |
11.1% |
3.6% |
| Patient
Handling |
217.6 |
180.9 |
20.3% |
9.7% |
772.3 |
749.1 |
3.1% |
-2.4% |
| Wound Care |
115.1 |
108.7 |
5.9% |
-5.6% |
433.8 |
444.2 |
-2.3% |
-10.8% |
| Extended
Care total |
633.6 |
514.8 |
23.1% |
7.2% |
2,110.9 |
2,007.7 |
5.1% |
-1.8% |
| Medical |
15.9 |
19.5 |
-18.5% |
-19.1% |
61.4 |
65.9 |
-6.8% |
-5.9% |
| |
1,633.3 |
1,429.0 |
14.3% |
6.8% |
5,253.5 |
4,884.7 |
7.6% |
3.3% |
| Key
figures |
2000 |
1999 |
Change |
| Orders
received, SEK Million |
5,243.3 |
4,932.2 |
6.3% |
| adjusted
for currency flucs.& corp.acqs |
|
|
2.0% |
| Net sales,
SEK Million |
5,253.5 |
4,884.7 |
7.6% |
| adjusted
for currency flucs.& corp.acqs |
|
|
3.3% |
| Financial
net |
-96.0 |
-55.0 |
74.5% |
| Profit
before tax, SEK Million |
623.7 |
636.2 |
-2.0% |
| Net profit,
SEK Million |
467.8 |
477.7 |
-2.1% |
| Earnings per
share after full tax, SEK |
10.30 |
10.52 |
-2.1% |
| Capital
employed, SEK Million |
3,356.8 |
2,988.2 |
12.3% |
| Return on
capital employed, per cent |
20.8% |
23.2% |
-2.4% |
| Net
debt/equity ratio, multiple |
1.98 |
0.97 |
1.01 |
| Equity/assets
ratio, per cent |
24.0% |
35.7% |
-11.7% |
| Equity per
share, SEK |
42.51 |
34.36 |
23.7% |
| Cash flow
before investments, SEK Million |
199.2 |
604.5 |
|
| Net
investments in fixed assets, SEK Million |
110.3 |
167.4 |
|
| Number of
employees at the period's end |
5,298 |
3,812 |
|
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