Interim report june 2001
- Orders received increased by
63% to SEK 4,099.5 million (2,518.7)
- Net sales increased by 59% to
SEK 3,845.1 million (2,419.5)
- Operating profit increased by
44% to SEK 434.0 million (301.3)
- Profit before tax increased
by 20% and amounted to SEK 313.5 million (260.7)
- Good earnings trend for the
Extended Care business area
- Continued good development
shown by the Surgical Systems business area
The quarter
Developments during the second quarter of the year have
been comprehensively good. Organic growth was strengthened in
comparison with Q1and totalled 11% in the period. Operating
profit increased by 44%.
The Surgical Systems business area
again had a strong quarter as regards orders received.
Satisfactory invoicing and an improved cost structure resulted in
a good operating profit for the period.
Developments in Extended Care
continue to be extremely good, with improvements in volume and
earnings in most markets.
The demand situation for Infection
Control improved during the quarter. Weakness in orders received
during the beginning of the year has, however, resulted in a
fall-off in invoiced sales with a weakened operating profit
during the period as a result.
Outlook
The Surgical Systems business area continued to develop
according to plan. Good volume growth and an improved cost
structure mean that prospects for the year as a whole continue to
be very good.
A stable and satisfactory demand
situation in the majority of Extended Care’s markets have
contributed to continued satisfactory development of the earnings
trend for the business area.
Deteriorated earnings for
Infection Control are the direct result of reduced volumes. The
business area expects a gradual improvement in demand during the
remainder of the year. The weak start does mean however, that
operating profit for the year as a whole is expected to be
somewhat less favourable than in the previous year.
The earnings trend within the
Infection Control business area is well compensated by strong
demand in Surgical Systems and Extended Care. The total
assessment is that the group’s outlook regarding earnings
continues to be positive.
Surgical Systems business area
| Market
developments |
2001 |
2000 |
|
2001 |
2000 |
|
| Orders
received per market |
Q 2 |
Q 2 |
|
H1 |
H1 |
|
| USA and
Canada |
106.9 |
12.8 |
|
206.4 |
53.2 |
|
| Great
Britain |
19.1 |
|
|
65.3 |
|
|
| Germany |
166.5 |
|
|
315.5 |
|
|
| Other
Western Europe |
213.5 |
|
|
339.9 |
|
|
| Rest of the
world |
134.0 |
17.5 |
|
254.2 |
22.2 |
|
| Business
area total |
640.0 |
30.3 |
|
1,181.3 |
75.4 |
|
Order intake for the business area
continues to be very good. Demand was good in most of the
business area’s markets in Europe and the Far East. Demand
in North America improved during the quarter. The combined sales
organisation for the Surgical Systems and Infection Control
business areas in the USA is now in place and order intake is
estimated to get still stronger during the second half of the
year.
| Results |
2001 |
2000 |
|
2001 |
2000 |
|
2000 |
| |
Q 2 |
Q 2 |
|
H1 |
H1 |
|
FY |
| Net sales,
SEK Million |
533.9 |
35.6 |
|
1,090.0 |
70.1 |
|
146.6 |
| Gross profit |
269.7 |
8.9 |
|
535.7 |
20.9 |
|
44.3 |
| Gross
margin % |
50.5% |
25.0% |
|
49.1% |
29.8% |
|
30.2% |
| Operating
cost, SEK Million |
-207.2 |
-10.5 |
|
-412.4 |
-23.0 |
|
-45.3 |
| Operating
profit |
62.5 |
-1.6 |
|
123.3 |
-2.1 |
|
-1.0 |
| Operating
margin % |
11.7% |
-4.5% |
|
11.3% |
-3.0% |
|
-0.7% |
Earnings for the period resulted
from a good volume trend and an improved cost structure achieved
by the actions taken. Operating tables and lighting systems both
showed improved earnings during the period.
Restructuring programme
The restructuring and action programme announced earlier, is
continuing to fulfilment as planned. For the present year,
synergy improvements are estimated at SEK 80 – 100 million.
Synergy benefits for the coming financial year are estimated to
be SEK 140 – 150 million. The closure of Orto Maquet was
completed during the quarter. Parts of the operation, together
with certain key personnel, have been sold. During the first half
of the year, restructuring costs totalled SEK 346.9 million, of
which 230.6 relates to OrtoMaquet.
Disposal of ALM’s table
business
Because of the very high market share of the business area in
respect of operating tables in the French market (about 90%) an
agreement has been reached with the French competition
authorities involving parts of ALM’s table business being
sold within the next 12-month period.
The business involved has an
annual turnover of FFR 55 million.
Other activities
Surgical Systems continues to capture important reference
orders for its unique table system for image guided surgery,
AWIGS (Advanced Workstation for Image Guided Surgery) and VIWAS
(Vascular Interventional Workplace for Advanced Surgery). The
products will be launched on a further number of selected markets
during the second half of the year.
The two new mobile operating
tables C-MAX and Alpha MAX which were developed specifically for
the American market and were launched during the spring, continue
to be very well received. Certain delivery interruptions have,
however, meant that the effect of earnings from this will first
become apparent during the second half of the .year.
Infection Control business
area
| Market
developments |
2001 |
2000 |
Change |
2001 |
2000 |
Change |
| Orders
received per market |
Q 2 |
Q 2 |
|
H1 |
H1 |
|
| Western
Europe |
374.3 |
328.9 |
13.8% |
718.6 |
652.5 |
10.1% |
| USA and
Canada |
344.3 |
307.7 |
11.9% |
642.8 |
558.4 |
15.1% |
| Asia/Australia |
85.5 |
59.7 |
43.2% |
148.7 |
120.5 |
23.4% |
| Rest of the
world |
40.7 |
33.5 |
21.5% |
65.6 |
89.2 |
-26.5% |
| Business
area total |
844.8 |
729.8 |
15.8% |
1,575.7 |
1,420.6 |
10.9% |
| adjusted
for currency flucs.& corp.acqs |
|
3.6% |
|
|
-2.4% |
During the quarter, demand
improved, but continues to be difficult to assess for Europe.
Markets which themselves proved to be very positive during the
quarter were France, Great Britain and Scandinavia. Demand from
hospital customers in the USA was better during the quarter, but
important orders to the pharmaceutical industry in the USA were
postponed. Developing markets which improved as regards orders
received during the quarter are expected to show still improved
orders received during the remainder of the year.
| Results |
2001 |
2000 |
Change |
2001 |
2000 |
Change |
2000 |
|
| |
Q 2 |
Q 2 |
|
H1 |
H1 |
|
FY |
|
| Net sales,
SEK Million |
748.5 |
721.8 |
3.7% |
1,430.8 |
1,339.8 |
6.8% |
2,934.6 |
|
adjusted
for currency
flucs.& corp.acqs |
|
-9.4% |
|
|
-6.0% |
|
|
| Gross profit |
273.6 |
262.5 |
4.2% |
517.0 |
501.8 |
3.0% |
1,090.7 |
|
| Gross
margin % |
36.6% |
36.4% |
0.2% |
36.1% |
37.5% |
-1.4% |
37.2% |
|
| Operating
cost, SEK Million |
-209.7 |
-172.5 |
21.6% |
-401.9 |
-342.5 |
17.3% |
-722.2 |
|
| Operating
profit |
63.9 |
90.0 |
-29.0% |
115.1 |
159.3 |
-27.7% |
368.5 |
|
| Operating
margin % |
8.5% |
12.5% |
-4.0% |
8.0% |
11.9% |
-3.9% |
12.6% |
|
The deteriorated operating profit
for the period is totally due to lower net turnover adjusted for
currency fluctuations and corporate acquisitions. This lower net
turnover is a result of a lower level of orders received during
the last 9-month period. The deterioration regarding autoclaves
to hospital customers was especially noticeable. As regards the
Disinfection product line, developments were satisfactory.
SEK 4.3 million has been charged
against the quarter for the World Sterilizer Project, and for the
year so far the total is SEK 7.0 million.
Activities
The World Sterilizer Project, WSP, which is one of the new
generation of standard autoclaves primarily intended for hospital
customers, continues as planned although somewhat delayed. The
WSP will be fully implemented during the first half of 2002 and
as from 2003 will improve the result of the business area by
between SEK 60 – 70 million per year.
New organisation
The executive management of the business area has been
strengthened with two important appointments during the quarter.
Christophe Hammer, formally head of the Disinfection business
unit has been appointed head of Sales and Markets. Mats Ottosson
has been engaged as head of the Sterilization business unit as
well as a member of the group executive board.
Extended Care business
area
| Market
developments |
2001 |
2000 |
Change |
2001 |
2000 |
Change |
| Orders
received per market |
Q 2 |
Q 2 |
|
H1 |
H1 |
|
| USA and
Canada |
237.0 |
187.4 |
26.5% |
477.0 |
368.7 |
29.4% |
| Great
Britain |
137.7 |
104.8 |
31.4% |
344.3 |
260.5 |
32.2% |
| Germany |
67.5 |
58.2 |
16.0% |
136.3 |
118.0 |
15.5% |
| Other
Western Europe |
151.0 |
107.7 |
40.2% |
311.5 |
212.0 |
46.9% |
| Rest of the
world |
21.8 |
20.9 |
4.3% |
42.2 |
33.8 |
24.9% |
| Business
area total |
615.0 |
479.0 |
28.4% |
1,311.3 |
993.0 |
32.1% |
| adjusted
for currency flucs.& corp.acqs |
|
15.3% |
|
|
17.6% |
Demand for the business
area’s products continued to be very good in most markets.
Markets which performed especially well during the quarter were
Spain, France, Benelux and Great Britain. The North American
market continues to develop in a positive direction, both as
regards Canada and the USA.
| Results |
2001 |
2000 |
Change |
2001 |
2000 |
Change |
2000 |
|
| |
Q 2 |
Q 2 |
|
H1 |
H1 |
|
FY |
|
| Net sales,
SEK Million |
629.2 |
480.5 |
30.9% |
1,292.5 |
978.7 |
32.1% |
2,110.9 |
|
| adjusted
for currency flucs.& corp.acqs |
|
18.1% |
|
|
17.7% |
|
|
| Gross profit |
305.9 |
230.5 |
32.7% |
630.4 |
487.0 |
29.4% |
1,042.3 |
|
| Gross
margin % |
48.6% |
48.0% |
0.6% |
48.8% |
49.8% |
-1.0% |
49.4% |
|
| Operating
cost, SEK Million |
-227.2 |
-170.8 |
33.0% |
-437.0 |
-346.3 |
26.2% |
-719.4 |
|
| Operating
profit |
78.7 |
59.7 |
31.8% |
193.4 |
140.7 |
37.5% |
322.9 |
|
| Operating
margin % |
12.5% |
12.4% |
0.1% |
15.0% |
14.4% |
0.6% |
15.3% |
|
The improvement in earnings during
the quarter was due to a positive volume trend. The Patient
Handling business unit showed an especially good earnings trend,
the Wound Care business unit showed a somewhat weaker trend.
Medical
The independent Medical business unit, together with
companies LIC Audio and NeuroMédica reported net sales of SEK
31.7 million (30.9). Operating profits totalled SEK 2.2 million
(3.3).
Next report
The next report from the Getinge
group (Q3 2001) will be issued on 18 October 2001.
Getinge 16 July 2001
Johan Malmquist
President
The tele-conference will be held
today at 11 a.m. Swedish time. To take part please phone +44 (0)
20 82 40 8240, codeword: Getinge.
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