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
Europe |
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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