Financial statement 2001
- Orders received increased
organically by 10% during Q4
- Strong profit performance in
the quarter. The operating profit climbed by 35% to SEK
373.6 million (277.7)¹
- The acquisition of Heraeus
strengthens Getinge's position within Surgical Systems
- All business areas progressed
well during the quarter
- Orders received soared by 60%
to SEK 8,375.7 million (5,243.3)
- Net sales rose by 55% to SEK
8,148.2 million (5,253.5)
- The operating profit rose by
40% to SEK 974.0 million (697.0)¹
- The profit before tax was up
by 25% at SEK 750.4 million (600.5)¹
- Improved cash-flow during the
quarter
- The proposed dividend per
share increased to 3:75 kr (3:50)
The quarter
The Group’s orders received were very good for Q4
and organic growth was 10%. For the full year, organic growth was
7.3%, which is above the long-term goal of 5%. Volume growth was
good for all business areas and in most markets. The increase in
the North American markets was strong, especially for the
Infection Control business area.
Sizeable invoicing during Q4
boosted profits for all business areas.
Outlook
The order books at the end of 2001 were at a very
healthy level and market conditions for all business areas appear
favourable. The profit outlook for all business areas is good and
the Infection Control business area is expected to report a
strong rise in profits.
The acquisition of Heraeus, which
was announced recently, will mean a significant boost for profits
in the Surgical Systems business area from 2003, although the
effect on the Group’s profit in the current year will be
insignificant.
¹ See note 4 page 6
Business area Surgical
Systems
| Market
developments |
2001
|
2000
|
|
2001
|
2000
|
|
| Orders
received per market |
Q 4
|
Q 4
|
|
12 Mon.
|
12 Mon.
|
|
| USA and
Canada |
134,9
|
43,6
|
|
427,9
|
129,0
|
|
| Great
Britain |
25,3
|
|
|
116,3
|
|
|
| Germany |
126,5
|
|
|
590,8
|
|
|
| Other
Western Europe |
184,1
|
1,8
|
|
620,6
|
1,8
|
|
| Rest of the
world |
112,2
|
-0,2
|
|
507,2
|
27,0
|
|
| Business
area total |
583,0
|
45,2
|
|
2.262,8
|
157,8
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Orders received by the business
area continued to be good in most markets. Growth in Q4 was
especially good in North America, the Benelux countries and the
French market. Further orders were secured during the quarter for
the new operating table system, VIWAS.
| Results |
2001
|
2000
|
|
2001
|
2000
|
|
| |
Q 4
|
Q 4
|
|
12 Mon.
|
12 Mon.
|
|
| Net sales,
SEK Million |
634,6
|
37,3
|
|
2.223,4
|
146,6
|
|
| Gross profit |
328,2
|
14,6
|
|
1.108,9
|
44,4
|
|
| Gross
margin % |
51,7%
|
39,1%
|
|
49,9%
|
30,3%
|
|
| Operating
cost, SEK Million |
-252,8
|
-9,4
|
|
-880,5
|
-45,4
|
|
| Operating
profit |
75,4
|
5,2
|
|
228,4
|
-1,0
|
|
| Operating
margin % |
11,9%
|
13,9%
|
|
10,3%
|
-0,7%
|
|
The business area’s results
continued to progress strongly. Good performance in volumes led
to good utilisation of capacity, with rising gross margins as a
result. Volumes and profits were especially strong for the
surgical lights business unit during the period.
Restructuring programme
The key parts of the previously announced restructuring
programme had been completed by the end of the year. Savings of
around SEK 140–150 million in the current year will have
positive effects for both the Surgical Systems and Infection
Control business areas.
Disposal of ALM´s surgical
table business
The process of divesting ALM’s surgical table business
is proceeding according to plan. Negotiations with potential
buyers will start during the current quarter. The sale will
affect the business area’s earnings negatively during the
current year, but volumes should be recovered by 2003. The
negative effect on earnings is estimated at SEK 15 million.
Acquisition of Heraeus
The acquisition of Heraeus Medical Technology significantly
strengthens the position of the business area within two segments
– surgical lamps and ceiling service units. The acquisition
will boost the business area’s results considerably from
2003.
Business area Infection
Control
| Market
developments |
2001
|
2000
|
Change
|
2001
|
2000
|
Change
|
| Orders
received per market |
Q 4
|
Q 4
|
|
12 Mon.
|
12 Mon.
|
|
| Western
Europe |
405,6
|
351,6
|
15,4%
|
1.465,1
|
1.270,9
|
15,3%
|
| USA and
Canada |
425,0
|
310,2
|
37,0%
|
1.451,1
|
1.169,8
|
24,0%
|
| Asia/Australia |
94,9
|
66,0
|
43,8%
|
325,7
|
265,3
|
22,8%
|
| Rest of the
world |
70,9
|
43,8
|
61,9%
|
162,2
|
181,0
|
-10,4%
|
| Business
area total |
996,4
|
771,6
|
29,1%
|
3.404,1
|
2.887,0
|
17,9%
|
| adjusted
for currency flucs.& corp.acqs |
|
17,3%
|
|
|
3,8%
|
Orders received during the period
grew organically by 17% and all regions reported strong growth.
In North America organic growth was 19%. Other areas which
performed positively were Scandinavia, the Benelux countries,
Germany and the developing markets in Central Europe and South
East Asia. Volumes grew at a weaker rate in southern Europe.
| Results |
2001
|
2000
|
Change
|
2001
|
2000
|
Change
|
|
| |
Q 4
|
Q 4
|
|
12 Mon.
|
12 Mon.
|
|
|
| Net sales,
SEK Million |
1.039,7
|
946,5
|
9,8%
|
3.204,3
|
2.934,6
|
9,2%
|
|
| adjusted
for currency flucs.& corp.acqs |
|
-2,5%
|
|
|
-3,7%
|
|
| Gross profit |
407,7
|
364,8
|
11,8%
|
1.153,7
|
1.090,7
|
5,8%
|
|
| Gross
margin % |
39,2%
|
38,5%
|
0,7%
|
36,0%
|
37,2%
|
-1,2%
|
|
| Operating
cost, SEK Million |
-248,8
|
-209,1
|
19,0%
|
-832,9
|
-722,2
|
15,3%
|
|
| Operating
profit |
158,9
|
155,7
|
2,1%
|
320,8
|
368,5
|
-12,9%
|
|
| Operating
margin % |
15,3%
|
16,5%
|
-1,2%
|
10,0%
|
12,6%
|
-2,6%
|
|
Invoiced sales after adjustments
for exchange rate differences and acquisitions were slightly
lower during the quarter, but cost reductions helped to boost
profit margins and the operating profit was therefore at around
the same level as the previous year.
World Sterilizer Project (WSP)
WSP is progressing as planned. At the start of 2002, it was
announced that the labour force at the Rochester, USA, production
unit would be cut by around 30%, or 100 jobs. Further measures
aimed at reinforcing the competitive strength of the
Sterilization business unit will be announced in Q1. When the new
production structure is in place in the beginning of the second
half of the year, annual savings will be in the region of SEK
60-70 million. Costs for implementing WSP are estimated at around
SEK 60 million for the current year. The business area’s
results for 2002 will be offset by net costs of around SEK 25
million because of the project.
Business area Extended
Care
| Market
developments |
2001
|
2000
|
Change
|
2001
|
2000
|
Change
|
| Orders
received per market |
Q 4
|
Q 4
|
|
12 Mon.
|
12 Mon.
|
|
| USA and
Canada |
255,6
|
214,2
|
19,3%
|
962,8
|
770,5
|
25,0%
|
| Great
Britain |
203,4
|
170,9
|
19,0%
|
737,2
|
568,6
|
29,7%
|
| Germany |
64,8
|
60,4
|
7,3%
|
271,5
|
237,2
|
14,5%
|
| Other
Western Europe |
167,5
|
159,2
|
5,2%
|
579,0
|
477,7
|
21,2%
|
| Rest of the
world |
27,1
|
23,1
|
17,3%
|
93,4
|
83,7
|
11,6%
|
| Business
area total |
718,4
|
627,8
|
14,4%
|
2.643,9
|
2.137,7
|
23,7%
|
| adjusted
for currency flucs.& corp.acqs |
|
6,8%
|
|
|
12,2%
|
Orders received for the business
area grew organically by 7% during Q4. Organic growth was 9% in
North America and 13% in the UK. Growth in Scandinavia and
Germany was weaker during Q4, while the trend in Spain, Italy and
France continued to be good.
| Results |
2001
|
2000
|
Change
|
2001
|
2000
|
Change
|
|
| |
Q 4
|
Q 4
|
|
12 Mon.
|
12 Mon.
|
|
|
| Net sales,
SEK Million |
762,4
|
633,6
|
20,3%
|
2.655,5
|
2.110,9
|
25,8%
|
|
| adjusted
for currency flucs.& corp.acqs |
|
12,0%
|
|
|
14,2%
|
|
| Gross profit |
379,9
|
313,6
|
21,1%
|
1.307,1
|
1.042,3
|
25,4%
|
|
| Gross
margin % |
49,8%
|
49,5%
|
0,3%
|
49,2%
|
49,4%
|
-0,2%
|
|
| Operating
cost, SEK Million |
-241,2
|
-198,6
|
21,5%
|
-885,8
|
-719,3
|
23,1%
|
|
| Operating
profit |
138,7
|
115,0
|
20,6%
|
421,3
|
323,0
|
30,4%
|
|
| Operating
margin % |
18,2%
|
18,2%
|
0,0%
|
15,9%
|
15,3%
|
0,6%
|
|
The operating profit for the
period climbed by 21% due to good growth in volumes. All business
units reported improved earnings for the quarter.
Closure of GTTI
A decision was made during the quarter to close down the
business area’s manufacturing unit in Traverse City,
Michigan, USA. Production of the patented Freedom Bath will move
to Eslöv, Sweden, during Q2. Annual savings will be around SEK 6
million.
Medical
The independent business area Medical that includes the
companies LIC Audio and NeuroMédica reported net sales of SEK
19.8 million (15.9 m) for Q4 and SEK 65.0 million (61.4 m) on an
annual basis. The operating profit was SEK 0.6 million (1.8 m)
for Q4 and SEK 3.5 million (6.5 m) on an annual basis.
Long-term financing
As part of a long-term financing plan, Getinge has mandated
Nordea and Commerzbank to arrange a 5-year credit facility
amounting to EUR 150 million with a bank syndicate. Barclays Bank
and Handelsbanken will act as co-arrangers. The new credit
facility will enable a better balance between the company’s
short-term and long-term credit.
Dividend
The Board and President propose an increased dividend per
share for 2001 of SEK 3.75 (3.50), a total amount of SEK 189.3
million (159,0). The proposed record date is 23 April 2002. VPC
expects to send the dividend to shareholders on 26 April 2002.
AGM
The Annual General Meeting of Shareholders for Getinge AB
will be held at 4 p.m. on 18 April 2002 in Getinge. The Annual
Report will be sent to shareholders at the latest two weeks
before the AGM. Shareholders wishing to attend the meeting must
be registered in the share register kept by VPC AB by 8 April
2002 at the latest, and notification of their participation shall
have reached Getinge’s head office by 12 April 2002 at the
latest.
Next report
The next report from the Getinge Group (Q1 2002) will be
published on 18 April 2002.
Getinge 28 January 2002
Johan Malmquist
President
A tele-conference will be held
today at 3 p.m. Swedish time. To take part please ring +44 (0) 20
82 40 8241, codeword: Getinge.
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