First quarter report for January - March 1999
21 APRIL 1999
- ORDERS RECEIVED TOTALLED
SEK 1,250.3 MILLION (SEK 1,002.7 M) – AN INCREASE OF
24.7 %
- INVOICED SALES TOTALLED
SEK 1,183.1 MILLION (SEK 937.2 M) – AN IMPROVEMENT
OF 26.2 %
- THE OPERATING PROFIT
BEFORE ITEMS AFFECTING COMPARABILITY ROSE 17.2% TO SEK
177.4 MILLION (SEK151.4 M)
- THE PROFIT BEFORE TAX ROSE
6.9 % TO SEK 161.1 MILLION (SEK150.7 M)
- THE INTEGRATION OF LAST
YEAR’S ACQUISITIONS IS GOING ACCORDING TO PLAN
- THE FORECAST FOR 1999 AS A
WHOLE REMAINS THE SAME WITH A PROFIT BEFORE TAX OF AROUND
SEK 675 MILLION (SEK 602.6 M)
Orders received
Orders received by the Getinge Group increased by 24.7% and
totalled SEK 1,250.3 million (SEK 1,002.7 m) for the first three
months of the year. Organic growth for comparable units and in
local currency, amounted to 5.1%.
Invoiced sales
Invoiced sales improved over the period by 26.2% to SEK 1,183.1
million (SEK 937.2m). Adjusted for company acquisitions,
disposals and exchange rate fluctuations, invoiced sales rose 5.4
%.
Profit
The Getinge Group’s operating profit before items affecting
comparability rose 17.2% to SEK 177.4 million (SEK 151.4 m) which
corresponds to15.0% (16.2%) of invoiced sales.
Net financial items totalled
– SEK 16.0 million (–SEK 12.9 m),of which net interest
items made up –SEK 15.5 million (–SEK 12.4 m). The
Group’s profit before tax rose by 6.9% to SEK 161.1 million
(SEK 150.7 m), which corresponds to 13.6% (16.1%) of
invoiced sales.
Return on capital employed was
25.5% (24.3%).
Financial position and
equity/assets ratio
The Group’s net debt at the end of Q1 was SEK 1,619.7
million (SEK 1,152.1 million) and the Group’s cash flow
after investments and disposals was SEK 129.9 million
(–SEK 68.9 million).
Shareholders equity on 31 March
was SEK 1,332.3 million (SEK 1,484.7 m) giving an equity/assets
ratio of 30.1% (38.4 %).
Investments
Net investments in machinery, equipment and buildings totalled
SEK 43.5 million (SEK 19.1 m).
Staff
The number of employees was 3,765 (3,107), of whom 798 (785) are
in Sweden.
The business areas –
operations and result
| Scientific |
|
|
| SEK
Million |
Mar 99 |
Mar 98 |
| Orders
received |
147.3 |
109.6 |
| Invoiced
sales |
105.4 |
125.6 |
| Operating
profit |
9.8 |
25.8 |
| as a
percentage of invoiced sales |
9.3% |
20.5% |
The business area’s orders
received rose by 34.3% over the first three months. Organic
growth for comparable units and in local currency, amounted to
30.9 %. Orders received have continued to be good on the American
market.
Over the period, invoiced sales
fell by 16.1 %. The business area Scientific works on a market
where invoiced sales fluctuate significantly from one quarter to
the next and from year to year. The 62% drop in the operating
profit is mainly an effect of lower invoicing.
In comparable units and adjusted
for currency fluctuations, invoiced sales fell by 19.2%.
| Sterilization
Health Care |
|
|
| SEK
Million |
Mar 99 |
Mar 98 |
| Orders
received |
296.0 |
302.7 |
| Invoiced
sales |
312.9 |
285.6 |
| Operating
profit |
15.8 |
21.1 |
| as a
percentage of invoiced sales |
5.0% |
7.4% |
The business area’s orders
received slipped by 2.2% in Q1. In comparable units and adjusted
for currency fluctuations, orders received fell by 22.5%. The
decline in orders received is mainly attributable to the North
American health care market.
Invoiced sales over the period
rose by 9.5% and the operating profit fell by 25.2 %. The poorer
operating profit is an effect of weaker sales in the North
American market. The integration of the acquisitions in Italy,
France and the Netherlands is going according to plan. The
activity programme started last year aimed at underpinning
long-term profitability, has intensified as a consequence of the
deteriorating demand.
In comparable units and adjusted
for currency fluctuations, invoiced sales fell by 7.4%.
| Disinfection |
|
|
| SEK
Million |
Mar 99 |
Mar 98 |
| Orders
received |
219.5 |
212.9 |
| Invoiced
sales |
201.0 |
175.7 |
| Operating
profit |
42.3 |
34.8 |
| as a
percentage of invoiced sales |
21.0% |
19.8% |
The business area’s orders
received rose by 3.1% in Q1. In comparable units,
currency-adjusted orders received are at the same level as last
year. Orders received have continued to progress strongly in the
laboratory market and pharmaceutical industry in North America.
Demand has been weaker in Northern and Central Europe in Q1.
Invoiced sales rose over the
period by 14.4% and the operating profit increased by 21.6%. In
comparable units and adjusted for currency fluctuations, invoiced
sales climbed by 10.9 %.
| Hygiene
Systems |
|
|
| SEK
Million |
Mar 99 |
Mar 98 |
| Orders
received |
203.0 |
200.8 |
| Invoiced
sales |
196.6 |
175.5 |
| Operating
profit |
22.1 |
29.2 |
| as a
percentage of invoiced sales |
11.2% |
16.6% |
The business area’s orders
received were at the same level in Q1 as they were last year.
Invoiced sales rose over the period by 12.0% and operating profit
fell by 24.4%. The deterioration in the operating profit is
related to an adverse product mix and a break in the production
of sit-baths for the North American market.
In comparable units and adjusted
for currency fluctuations, invoiced sales rose by 9.7%.
| Patient
Handling |
|
|
| SEK
Million |
Mar 99 |
Mar 98 |
| Orders
received |
368.1 |
160.8 |
| Invoiced
sales |
350.4 |
158.1 |
| Operating
profit |
85.7 |
39.3 |
| as a
percentage of invoiced sales |
24.5% |
24.9% |
The business area’s orders
received surged by 129.0% over the first three months. Organic
growth amounted to 34.7 %. The volume trend continued to be
positive on the American market. The Pegasus group that works in
the pressure sore prevention and treatment sector, continued to
progress well.
Invoiced sales also rose by 129.0
% and the operating profit increased by 118.0 %.
In comparable units and adjusted
for currency fluctuations, invoiced sales rose by 37.2 %.
Other
The Medical product line, which includes the LIC Audio and
NeuroMédica companies, reported invoiced sales of SEK 17.0
million (SEK 16.6 m) and an operating profit of SEK 1.8 million
(SEK 1.5 m).
Forecast
The full year forecast made earlier still stands, with a profit
before tax of around SEK 675 million (SEK 602.6 m).
The next report
The next report from the Getinge Group (the interim report) will
be published on 6 August 1999.
Getinge, 21 April 1999
Johan Malmquist
President
Tel: +46 35 15 55 00
| Income
Statement |
|
|
|
|
| SEK
Million |
|
3 months |
3 months |
Full year |
| |
|
1 Jan 99 |
1 Jan 98 |
1998 |
| |
|
31 Mar 99 |
31 Mar 98 |
|
| |
|
|
|
|
| Invoiced
sales |
|
1,183.1 |
937.2 |
4,345.0 |
| Cost of
goods sold and services |
|
-639.7 |
-518.6 |
-2,405.1 |
| Gross
profit |
|
543.4 |
418.6 |
1,939.9 |
| Costs for
sales, research/ |
|
|
|
|
| development
and administration |
|
-366.0 |
-267.2 |
-1,287.0 |
| Operating
profit prior to items |
|
|
|
|
| affecting
comparability |
|
177.4 |
151.4 |
652.9 |
| Operations
divested |
1) |
– |
12.5 |
15.9 |
| Operating
profit |
|
177.4 |
163.9 |
668.8 |
| Interest
income |
|
4.6 |
5.4 |
23.4 |
| Interest
expense |
|
-20.1 |
-17.8 |
-86.1 |
| Other
financial items |
|
-0.5 |
-0.5 |
-2.3 |
| Associated
companies' profit/loss |
|
-0.3 |
-0.3 |
-1.2 |
| Profit
before tax |
|
161.1 |
150.7 |
602.6 |
| Tax |
2) |
-40.2 |
-31.8 |
-125.9 |
| Net
profit |
|
120.9 |
118.9 |
476.7 |
1) The line "Operations
divested" refers to the operating profit for Lifco (Business
area Distribution). A dividend in kind of the shares in Lifco was
implemented at the AGM in1998 and it was part of the Group up to
30 April 1998.
2) For 31 March 1999 tax is
estimated at 25% of the profit before tax and for 1998 the
Group’s full tax cost is estimated at 20.9% of the profit
before tax.
| Summarised
Balance Sheet |
|
|
|
|
| SEK
Million |
|
31 Mar 99 |
31 Mar 98 |
1998 |
| Assets |
|
|
|
|
| Goodwill |
|
1,041.3 |
891.2 |
1,034.2 |
| Fixed assets |
|
716.4 |
598.9 |
760.2 |
| Stock-in-trade |
|
837.6 |
905.1 |
770.7 |
| Receivables |
|
1,591.7 |
1,271.4 |
1,665.0 |
| Liquid
assets |
|
245.2 |
199.3 |
196.6 |
| Total
assets |
|
4,432.2 |
3,865.9 |
4,426.7 |
| Shareholders'
equity & Liabilities |
|
|
|
|
| Shareholders'
equity |
|
1,332.3 |
1,484.7 |
1,221.0 |
| Interest
bearing liabilities |
|
1,864.9 |
1,351.4 |
1,919.0 |
| Non-interest
bearing liabilities |
|
1,235.0 |
1,029.8 |
1,286.7 |
| Total
Equity & Liabilities |
|
4,432.2 |
3,865.9 |
4,426.7 |
| Statements
of source and application of funds |
|
|
| SEK
Million |
|
31 Mar 99 |
31 Mar 98 |
1998 |
| Operations |
|
|
|
|
| Operating
profit |
|
177.4 |
163.9 |
668.8 |
| Depreciation |
|
46.0 |
36.5 |
149.7 |
| Financial
items |
|
-16.0 |
-12.9 |
-65.0 |
| Share in
associated companies' profit/loss |
|
-0.3 |
-0.3 |
-1.2 |
| Taxes paid |
|
-37.2 |
-23.8 |
-111.0 |
| Cash flow
prior to changes in |
|
|
|
|
| working
capital, investments and |
|
|
|
|
| disposals |
|
169.9 |
163.4 |
641.3 |
| Changes
in working capital |
|
|
|
|
| Stock-in-trade |
|
-66.8 |
-73.4 |
-39.0 |
| Current
receivables |
|
137.8 |
-12.5 |
-337.5 |
| Current
operating liabilities |
|
-39.1 |
-93.8 |
-18.6 |
| Restructuring
reserves, utilised |
|
-9.7 |
-29.8 |
-118.3 |
| Cash flow
prior to investments |
|
|
|
|
| and
divestments |
|
192.1 |
-46.1 |
127.9 |
| Investments
and disposals |
|
|
|
|
| Direct net
investments in machinery, |
|
|
|
|
| equipment
and buildings |
|
-43.5 |
-19.1 |
-141.4 |
| Net of
company acquisitions and |
|
|
|
|
| disposal of
operations |
|
-18.7 |
-3.7 |
-579.6 |
| Dividend in
kind, Lifco |
|
– |
– |
622.5 |
| Cash flow
after investments |
|
|
|
|
| and
disposals |
|
129.9 |
-68.9 |
29.4 |
| Financial
activities |
|
|
|
|
| Change in
long-term receivables |
|
1.0 |
-0.1 |
-1.3 |
| Change in
deferred tax |
|
-4.2 |
-0.2 |
-9.7 |
| Dividend
paid |
|
– |
– |
-124.9 |
| Dividend in
kind, Lifco |
|
– |
– |
-510.5 |
| Other
items |
|
|
|
|
| Translation
differences |
|
-24.0 |
-7.1 |
-29.5 |
| Decrease
+/Increase - in net debt |
|
102.7 |
-76.3 |
-646.5 |
| Key
figures |
|
|
|
| |
31 Mar 99 |
31 Mar 98 |
1998 |
| |
|
|
|
| Return on
capital employed, per cent |
25.5 |
24.3 |
25.0 |
| |
|
|
|
| Shareholders'
equity per share, SEK |
29.33 |
32.69 |
26.88 |
| |
|
|
|
| Equity/assets
ration, per cent |
30.1 |
38.4 |
27.6 |
| |
|
|
|
| Earnings per
share after full tax, SEK |
2.66 |
2.62 |
10.50 |
| |
|
|
|
| Number of
employees at the period's end |
3,765 |
3,107 |
3,724 |
Definitions
Capital employed
Total assets minus liquid assets
and minus non-interest bearing liabilities. Calculated as an
average for the period.
Return on capital employed
Operating profit in relation to
capital employed.
Equity/assets ratio
Shareholders' equity in relation
to balance sheet total.
Earnings per share after full
tax
Profit for the period divided by
number of shares.
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