Getinge Q1 report for January-March 2004
- Orders received climbed
22% to SEK 2,635.2 million (2.165.4)
- Net sales climbed 24%
to SEK 2,491.6 million (2.003.0)
- Profit before tax rose
38% to SEK 240.7 million (174,0)
- Net profit rose 36% to
SEK 168.5 million (123.5)
- EPS rose 36% to SEK 0.83
(0.61)
- Organic orders received increased
6.7%
- All business areas are
performing well
- Profit outlook remains
good
Q1 2004
Orders received Orders received for
the Group came in with a solid organic growth by 6.7%. Good
market coverage in Western Europe has compensated for weaker
demand. Demand remains good on the North American and developing
markets.
Orders received continued to be
good for Infection Control and Extended Care, with the latter
noting an upturn in volumes in the final quarter of 2003.
Medical Systems, with its strong
dependence on the European healthcare market, performed according
to plan with a small growth in volumes.
Results The Group’s
profit before tax soared 38% in Q1 to SEK 240.7 million (174.0 m).
The improved profit is an effect of good volume growth and
earnings from the new acquisitions, Jostra and Siemens LSS.
Exchange rate effects had an impact of around SEK 50 million on
earnings.
Infection Control’s earnings,
which were affected by most of the Group’s exchange rate
effects, are at the same level as the previous quarter last year.
Extended Care improved earnings significantly on the back of
volume increases and good cost control. Within Medical Systems,
weak volume growth for Surgical Workplaces were offset by lower
costs, which combined with an earnings contribution from the
acquisition of Jostra and Siemens LSS, have led to an impressive
growth in earnings.
Outlook
The Group performed well in the
first quarter of the year, in terms of both earnings and volumes,
which forms a strong base for progress during the year.
Extended Care is benefiting from a
better cost structure, which was established during 2003. Demand
remains good and several product launches in the coming quarter
are expected to boost volume growth.
The positive development of
Infection Control that started in 2003 continues. Structural
measures will lead to a continued rise in operating margins,
while improved market coverage will mean good volume growth. Of
the Group’s negative exchange rate effects, estimated at
around SEK 135 million for the year, around SEK 80 million will
impact on Infection Control, of which most will occur in Q1 and Q2.
The expected earnings growth will thus be concentrated in the
second half of the year.
Medical Systems is also advancing
positively. The lower volume growth announced for Surgical
Workplaces is being compensated by good cost control and pricing
discipline, which means that earnings are expected to rise. The
earnings contribution from the Jostra and Siemens acquisitions
are expected to boost Group earnings by around SEK 150 million
annually.
As with the situation at the start
of the year, the earnings outlook after the first quarter remains
good.
Johan Malmquist
President
Getinge AB
Box 69, 310 44 Getinge
Telephone +46 (0)35 15 55 00. Fax +46 (0)35 549 52
email info@getinge.com
Company reg. No. 556408-5032
www.getinge.com
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