Q1 report january - march 2000
- Orders received totalled
SEK 1,266.4 million (1,250.3)
- Invoiced sales totalled
SEK 1,167.9 million (1,183.1)
- The operating profit was
SEK 152.0 million (177.4)
- The profit before tax was
SEK 135.6 million (161.1)
- Good orders received
figure for the Infection Control business area
Market developments
Orders received and invoiced sales for the Group in Q1 are at the
same level as last year. Demand in the Infection Control business
area has been good particularly in the important North American
market. The business area’s orders received rose by 10%. In
the Geriatrics business area orders received declined. Adjusted
for a major order from the US’s largest geriatric care
chain, Geriatrics’ orders received are at the same level as
last year.
Results
The Group’s profit before tax for Q1 was SEK 135.6 million
compared with SEK 161.1 million for the same period last year.
The profit slide is attributable to the Geriatrics business
area’s lower net sales. The Infection Control business
area’s profit is at the same level as last year.
Outlook for 2000
The good level of demand coupled with the Sterilisation product
line’s improved competitiveness, means that the Infection
Control business area’s profit is expected to improve over
the coming year. The demand for Geriatrics business area is
difficult to judge. In view of present market conditions the
business area’s result is expected to be at the same level
as last year.
Infection Control business area
Market developments
| Orders
received |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
| Western
Europé |
323,6 |
321,1 |
0,8% |
|
| USA |
292,3 |
269,6 |
8,4% |
|
| Asia/Australia |
60,7 |
43,2 |
40,5% |
|
| Rest of the
world |
59,3 |
28,9 |
105,2% |
|
| Business
area total |
735,9 |
662,8 |
11,0% |
10,2% |
The level of demand for the
business area’s products has continued to progress well.
Above all demand from customers in the Health care and Geriatric
care segments has been good while demand from Industrial
customers was weak.
The business area’s best
performance has been on the important North American market. On
the European markets demand has been stable. The developing
markets, mainly Asia and Latin America, saw good growth while
other developing markets saw lower growth.
Taken together, orders received for Q1 have risen by 10% compared
with the same period last year, which compares with the business
area’s long-term growth objective of 5 – 7%.
| Results |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
12 months 1999 |
| Net sales,
SEK Million |
652,5 |
619,3 |
5,4% |
4,6% |
2 811,1 |
| Gross profit |
257,4 |
242,1 |
6,3% |
|
1 108,7 |
| Gross
margin, % |
39,4% |
39,1% |
0,3% |
|
39,4% |
| Operating
cost, SEKMill |
-188,6 |
-174,2 |
8,3% |
|
-743,3 |
| Operating
profit |
68,8 |
67,9 |
1,3% |
|
365,4 |
| Operating
margin, % |
10,5% |
11,0% |
-0,5% |
|
13,0% |
Lower usage of manufacturing
facilities for sterilisers for the pharmaceutical industry was
offset by improved results from the North American activities,
which means a profit at the same level as last year.
Important activities
Development of a new generation of Health Care sterilisers based
on a common platform is continuing according to plan. The product
suite will be launched in the late autumn. The project’s
costs of around SEK 20 million will be charged to this
year’s accounts and from 2002 will generate savings of
around SEK 50-60 million per year.
During Q1 the business area continued to evaluate the
possibilities of further integrating the customer chain and
running sterile centres in co-operation with service providers
and hospitals. The evaluation will continue over the next
12-month period.
During the quarter a new range of surgical lamps was launched,
based on revolutionary fibre-optic technology. The global market
for surgical lamps is worth around SEK 1.5 billion of which SEK
600 million is in the US. There is huge potential available for
taking significant market share. A new operating table was
launched which is more competitive and has a wide area of use.
Both products are expected to be available on the market during
Q4 2000.
Product lines
| Sterilisation |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
12 months 1999 |
| Orders
received |
524,5 |
443,3 |
18,3% |
16,4% |
1 942,6 |
| Net sales |
438,5 |
418,3 |
4,8% |
3,3% |
1 902,7 |
| Disinfection |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
12 months 1999 |
| Orders
received |
211,4 |
219,5 |
-3,7% |
-2,4% |
941,9 |
| Net sales |
214,0 |
201,0 |
6,5% |
7,2% |
908,4 |
Outlook
The conditions for the coming year as a whole are seen as good.
However, some uncertainty still surrounds demand from customers
in the pharmaceutical industry. The market has stabilised in the
US at the same time as demand from the developing markets has
increased..
Geriatrics business area
Market developments
| Orders
received |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
| USA |
144,7 |
202,8 |
-28,6% |
|
| Great
Britain |
155,7 |
165,6 |
-6,0% |
|
| Germany |
59,8 |
57,4 |
4,2% |
|
| Other
Western Europe |
104,3 |
102,1 |
2,2% |
|
| Rest of the
world |
49,5 |
43,2 |
14,6% |
|
| Business
area total |
514,0 |
571,1 |
-10,0% |
-12,1% |
Demand has basically followed the
same pattern as in 1999 with two exceptions: the US and the UK.
Orders received for the US activities during Q1 1999 included an
order of around SEK 60 million from Beverly Enterprises, one of
the US’s largest geriatric care chains. If this order is
excluded from the comparison with 1999’s figures, the
current quarter’s orders received from the US are at the
same level as Q1 1999 and 1998. It can also be confirmed that the
UK market developed more weakly than last year especially within
both the pressure sore and lifting aids sectors. This is due to a
change in buying patterns, as buying by health authorities has
now been spread out over the year.
Demand on the important markets in Germany, Canada and the
Netherlands has been better than expected and on other markets
demand has been generally good.
| Results |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
12 months 1999 |
| Net sales,
SEK Million |
498,2 |
547,0 |
-8,9% |
-11,2% |
2 007,7 |
| Gross profit |
256,5 |
295,7 |
-13,3% |
|
1 051,9 |
| Gross
margin, % |
51,5% |
54,1% |
-2,6% |
|
52,4% |
| Operating
cost, SEKMill |
-175,5 |
-187,9 |
-6,6% |
|
-731,6 |
| Operating
profit |
81,0 |
107,8 |
-24,9% |
|
320,3 |
| Operating
margin, % |
16,3% |
19,7% |
-3,4% |
|
16,0% |
The decline in the results is
completely attributable to the lower business volumes in the US
and the UK.
Important activities
The Encore patient lift that was launched last year has continued
to sell well.
The cost rationalisation program, started in the US in Q4 last
year, has in principle been concluded and will generate annual
savings of around SEK 20 million. The UK pressure sore
business’ marketing organisation has been re-focused and
made more effective, which will mean annual savings of SEK 4
– 5 million.
The implementation of a joint marketing organisation for the
European sales companies aimed at underpinning the business
area’s unique competitive edge as a supplier of complete
system solutions, is proceeding according to plan. The new
organisation will furthermore eventually lead to lower
distribution and administrative costs.
Product lines
| Hygiene
Systems |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
12 months 1999 |
| Orders
received |
208,0 |
203,0 |
2,5% |
1,8% |
790,3 |
| Net sales |
188,7 |
196,6 |
-4,0% |
-4,9% |
814,4 |
| Patient
Handling |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
12 months 1999 |
| Orders
received |
191,2 |
240,7 |
-20,6% |
-22,5% |
745,1 |
| Net sales |
193,8 |
225,0 |
-13,9% |
-16,0% |
749,1 |
| Antidecubitus..... |
Q1 2000 |
Q1 1999 |
Change |
Adj. f. corp.acq's
and curr. fluct's |
12 months 1999 |
| Orders received |
114,8 |
127,4 |
-9,9% |
-14,4% |
446,2 |
| Net sales |
115,7 |
125,4 |
-7,7% |
-12,4% |
444,2 |
Outlook
Demand in the US continues to be difficult to judge. A decision
has been taken by the US Congress to postpone additional funds
for the Medicare system. The effects of the decision on the
year’s results are difficult to see, although they are
probably positive.
On the UK market the business area expects that demand for
lifting aids will climb during the rest of the year, while the
pressure sore business will probably be somewhat worse than last
year.
The business area’s costs will be lower during the year due
to the restructuring programme that has been introduced. A large
number of new products have also been launched over the past two
quarters.
Other
The independent Medical product line that includes the companies
LIC Audio and NeuroMédica reported net sales of SEK 17.1 million
(17.0).
Next report
The next report from the Getinge Group (Interim report for first
six months) will be published on 10 August 2000.
Getinge 26 april 2000
Johan Malmquist
President and CEO, Tel no. +46
– 35 15 55 00
Income Statement — the
Getinge Industrier Group
| SEK
Million |
|
Q1 |
Q1 |
Change |
12 Months |
| |
|
2000 |
1999 |
|
1999 |
| |
|
|
|
|
|
| Net sales
1) |
|
1 167,9 |
1 183,1 |
-1,3% |
4 884,7 |
| Cost of
goods sold and services |
|
-648,6 |
-639,7 |
1,4% |
-2 702,8 |
| |
|
|
|
|
|
| Gross
profit |
|
519,3 |
543,4 |
-4,4% |
2 181,9 |
| Gross
margin |
|
44,5% |
45,9% |
-1,4% |
44,7% |
| |
|
|
|
|
|
| Costs for
sales, research/ |
|
|
|
|
|
| development
and administration |
|
-367,3 |
-366,0 |
0,4% |
-1 489,7 |
| |
|
|
|
|
|
| Operating
profit 2) |
|
152,0 |
177,4 |
-14,3% |
692,2 |
| Operating
margin |
|
13,0% |
15,0% |
-2,0% |
14,2% |
| |
|
|
|
|
|
| Interest
income |
|
4,4 |
4,6 |
|
25,9 |
| Interest
expense |
|
-22,4 |
-20,1 |
|
-77,6 |
| Other
financial items |
|
1,6 |
-0,5 |
|
-3,3 |
| Associated
companies' profit/loss |
|
0,0 |
-0,3 |
|
-1,0 |
| |
|
|
|
|
|
| Profit
before tax |
|
135,6 |
161,1 |
-15,8% |
636,2 |
| Tax 3) |
|
-33,9 |
-40,2 |
|
-158,5 |
| |
|
|
|
|
|
| Net
profit |
|
101,7 |
120,9 |
-15,9% |
477,7 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| 1)
Adjusted for currency fluctuations and company
acquisitions |
|
|
| the net
sales' change is |
|
|
|
-2,7% |
|
| |
|
|
|
|
|
| 2)
Operating profit is charged with |
|
|
|
|
|
| —
amortisation on goodwill |
|
-15,1 |
-14,7 |
|
-60,7 |
| —
depr. on other fixed assets |
|
-32,4 |
-31,3 |
|
-127,5 |
| |
|
|
|
|
|
| |
|
-47,5 |
-46,0 |
|
-188,2 |
| |
|
|
|
|
|
| 3)
For Q1 2000 tax is estimated at 25% of the profit before
tax. For 1999 the Group's full tax cost was 24.9% of the |
| profit
before tax. |
|
|
|
|
|
Summarised Balance Sheet —
the Getinge Industrier Group
| SEK
Million |
|
31 March 2000 |
31 March 1999 |
31 Dec 1999 |
| Assets |
|
|
|
|
| |
|
|
|
|
| Goodwill |
|
1 001,4 |
1 041,3 |
1 012,7 |
| Fixed assets |
|
816,1 |
716,4 |
815,6 |
| Stock-in-trade |
|
868,1 |
837,6 |
765,3 |
| Receivables |
|
1 546,0 |
1 591,7 |
1 625,1 |
| Liquid
assets |
|
211,4 |
245,2 |
158,8 |
| |
|
|
|
|
| Total
assets |
|
4 442,9 |
4 432,2 |
4 377,5 |
| |
|
|
|
|
| Shareholders'
equity & Liabilities |
|
|
|
|
| |
|
|
|
|
| Shareholders'
equity |
|
1 656,9 |
1 332,3 |
1 560,8 |
| Interest
bearing liabilities |
|
1 704,3 |
1 864,9 |
1 673,7 |
| Non-interest
bearing liabilities |
|
1 081,7 |
1 235,0 |
1 143,0 |
| |
|
|
|
|
| Total
Equity & Liabilities |
|
4 442,9 |
4 432,2 |
4 377,5 |
Cash flow analysis — the
Getinge Industrier Group
Key figures — the Getinge
Industrier Group
| |
Q1
2000 |
Q1
1999 |
Change |
1999 |
| |
|
|
|
|
| Orders
received, SEK Million |
1
266,4 |
1
250,3 |
1,3% |
4
932,2 |
| Orders
received, adj. for curr.fluctuations and corp.acq's |
|
|
-0,1% |
|
| |
|
|
|
|
| Net
sales, SEK Million |
1
167,9 |
1
183,1 |
-1,3% |
4
884,7 |
| Net
sales, adj. for curr.fluctuations and corp.acq's |
|
|
-2,7% |
|
| |
|
|
|
|
| Financial
net |
-16,4 |
-16,0 |
2,5% |
-55,0 |
| |
|
|
|
|
| Profit
before tax, SEK Million |
135,6 |
161,1 |
-15,8% |
636,2 |
| |
|
|
|
|
| Net
profit SEK Million |
101,7 |
120,9 |
-15,8% |
477,7 |
| |
|
|
|
|
| Earnings
per share after full tax, SEK |
2,24 |
2,66 |
-15,8% |
10,52 |
| |
|
|
|
|
| Return
on capital employed, per cent |
22,0% |
25,5% |
-3,5% |
23,2% |
| |
|
|
|
|
| Equity/assets
ratio, per cent |
37,3% |
30,1% |
7,2% |
35,7% |
| |
|
|
|
|
| Equity
per share, SEK |
36,48 |
29,33 |
24,4% |
34,36 |
| |
|
|
|
|
| Operating
cash flow, SEK Million |
42,4 |
148,6 |
|
437,1 |
| |
|
|
|
|
| Direct
net investments in machinery, |
|
|
|
|
| equipment
and buildings |
22,4 |
51,5 |
|
167,4 |
| |
|
|
|
|
| Number
of employees at the period's end |
3
800 |
3
765 |
|
3
812 |
This report has not been
subject to an official audit
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