Q1 report january - march 2001
Orders received climbed 57% to SEK
1,985.9 million (1,266.3)
Net sales rose by 64% to SEK
1,919.0 million (1,167.9)
The operating profit rose 50% to
SEK 228.2 million (152.0)
The profit before tax went up 23%
amounting to SEK 167.2 million (135.6)
Strong volumes and earnings trend
continues for the Extended Care business area
Strong introduction for the
Surgical Systems business area
The quarter
The year has started well for the Group as a whole and for the
Surgical Systems business area the volume trend during Q1 was
exceptional on a number of markets. Integrating the Maquet and
ALM acquisitions is going according to plan and has contributed
to a reduced cost level and a good operating profit.
The Extended Care business
area’s performance continues to be very good with volume
increases on most markets. The increase in net sales and the
synergy gains from last year’s acquisitions meant that the
operating profit climbed markedly during Q1.
The Infection Control business
area has had a flat start to the year volume-wise and the level
of demand continues to be hard to judge in Europe. The North
American market has started the year more weakly than expected.
From the start of the year Maquet's Infection Control activities
are included which have not made a positive contribution to the
business area’s operating profit.
Outlook
Surgical Systems’ strong volume and earnings trend at the
start of the year, coupled with good progress in the
restructuring programme, means that the profit outlook for the
year is assessed to be good.
The market’s outlook for
Extended Care continues to be positive. A number of new products
are being launched and have been received very positively by the
market. The business area is calculating on the positive earnings
trend continuing during the year.
Infection Control has started the
year on a weak footing on the back of receding volumes. The
long-term work to improve the Group’s production structure
as well as the integration of Maquet's Infection Control
activities will have a positive impact on profits during the
second half of the year. The level of demand will continue to be
hard to judge.
To sum up, the Group continues to
view the earnings trend positively. The strong performances by
the Surgical Systems and Extended Care business areas are
compensating for Infection Control’s weak start.
Surgical Systems business area
| Market
developments |
2001 |
2000 |
|
| Orders
received per market |
Q1 |
Q1 |
|
| USA and
Canada |
99 .5 |
40 .4 |
146,3% |
| Great
Britain |
46 .2 |
|
|
| Germany |
149 .0 |
|
|
| Other
Western Europe |
126 .4 |
|
|
| Rest of the
world |
120 .2 |
4 .7 |
2457,4% |
| Business
area total |
541 .3 |
45 .1 |
1100,2% |
Orders received during Q1 were
very strong both for the operating tables and surgical lighting
systems product lines. On the European markets and developing
markets the volume trend has been exceedingly good. On the North
American market, where Maquet's, ALM's and Getinge’s sales
activities were merged during Q1,the volume trend has been
somewhat weaker.
| Results |
2001 |
2000 |
|
2000 |
| |
Q1 |
Q1 |
|
FY |
| Net sales,
SEK Million |
556 .1 |
34 .5 |
1511 .9% |
146 .6 |
| Gross profit |
266 .0 |
12 .0 |
2116 .7% |
44 .3 |
| Gross
margin % |
47 .8% |
34 .8% |
13 .0% |
30 .2% |
| Operating
cost, SEK Million |
-205 .2 |
-12 .5 |
1541 .6% |
-45 .3 |
| Operating
profit |
60 .8 |
-0 .5 |
-12260 .0% |
-1 .0 |
| Operating
margin % |
10 .9% |
-1 .4% |
12 .3% |
-0 .7% |
Surgical Systems showed good
results for Q1. The profit improvement is attributable to both
the operating tables and surgical lighting systems product lines
and is a consequence of a good volume trend and reduced costs
resulting from the rationalisation measures taken.
Restructuring programme
During Q1, the business area has already introduced several of
the restructuring measures that were announced in connection with
the acquisitions:
– A merging of Maquet's,
ALM's and Getinge’s sales organisations in Germany, France,
Italy, England and the US has, to all extents, been carried out
– Closing down production
units in Charleston, US, and Oer-Erkenschwick, Germany, is
underway
– Adapting Maquet's and ALM's
administrative costs in Germany and France respectively, has
started
– Closing down OrtoMaquet
began at the end of March
– Activities to improve
distribution known as cross-selling have started in Germany and
North America
To sum up, the business area is in
a good position to realize the planned cost synergies of SEK 140
– 150 million annually. For the coming year it is estimated
that these will amount to SEK 80 - 100 million. Structural costs
in Q1 stood at SEK 34 million.
Activities
During Q1 further reference orders have been secured for the
business area’s specially-equipped operating tables for
image guided surgery - AWIGS (Advanced Workstation for Image
Guided Surgery) and VIWAS (Vascular Interventional Workplace for
Advanced Surgery).
At the AORN trade fair in Dallas,
Texas, two new mobile tables were launched – the C-Max and
the Alpha Max plus – which have been specifically developed
for the North American market and are a vital step in the
business area’s aim of significantly strengthening its
shares on this important market.
Product development work to design
a range of surgical lighting systems for smaller medical
practices and for developing markets – a sector that has not
been worked with before – is going according to plan and
will be launched during Q4.
Infection Control business
area
| Market
developments |
2001 |
2000 |
Change |
| Orders
received per market |
Q1 |
Q1 |
|
| Western
Europe |
344 .3 |
323 .6 |
6 .4% |
| USA and
Canada |
298 .5 |
250 .7 |
19 .1% |
| Asia/Australia |
63 .2 |
60 .8 |
3 .9% |
| Rest of the
world |
24 .9 |
55 .7 |
-55 .3% |
| Business
area total |
730 .9 |
690 .8 |
5 .8% |
| adjusted
for currency flucs.& corp.acqs |
|
|
-8 .7% |
The level of demand is hard to
judge on the developed markets. The allocation of budgeted funds
for capital investments in the health care sector of the
important European markets had not finished during Q1. The
effects of the worsening American economic position regarding
demand for privately-financed health care services, such as
cosmetic surgery, are also hard to judge. The business area
estimates that a better level of demand will be seen in Q2.
| Results |
2001 |
2000 |
Change |
2000 |
| |
Q1 |
Q1 |
|
FY |
| Net sales,
SEK Million |
682 .3 |
618 .0 |
10 .4% |
2,934.6 |
| adjusted
for currency flucs.& corp.acqs |
|
|
-2 .1% |
|
| Gross profit |
243 .4 |
239 .3 |
1 .7% |
1,090 .7 |
| Gross
margin % |
35 .7% |
38 .7% |
-3 .0% |
37.2% |
| Operating
cost, SEK Million |
-192 .2 |
-170 .0 |
13 .1% |
-722 .2 |
| Operating
profit |
51 .2 |
69 .3 |
-26 .1% |
368 .5 |
| Operating
margin % |
7 .5% |
11 .2% |
-3 .7% |
12.6% |
The lower operating profit is an
effect of the deteriorating factory utilization during Q1 and a
somewhat worse gross margin in the North American activities.
From the start of the year Maquet's Infection Control activities
are included, which showed a lower operating loss over Q1.
Activities
The work to improve the business area’s cost structure
concerning the manufacture of sterilization equipment, (World
Sterilizer Project) continued with some delays. The effects of
the rationalisation programme will be noticeable first during the
second part of the year, and it is thought that it will be fully
completed during 2002.
Extended Care business
area
| Market
developments |
2001 |
2000 |
Change |
| Orders
received per market |
Q1 |
Q1 |
|
| USA and
Canada |
240.0 |
181.3 |
32.4% |
| Great
Britain |
206.6 |
155.7 |
32.7% |
| Germany |
68.8 |
59.8 |
15.1% |
| Other
Western Europe |
160.5 |
104.3 |
53.9% |
| Rest of the
world |
20.4 |
12.9 |
58.1% |
| Business
area total |
696.3 |
514.0 |
35.5% |
| adjusted
for currency flucs.& corp.acqs |
|
|
19.8% |
Orders received continued to
progress well on a broad front. The performance has been
particularly strong in Western Europe where the markets in the UK
and Benelux distinguished themselves.
| Results |
2001 |
2000 |
Change |
2000 |
| |
Q1 |
Q1 |
|
FY |
| Net sales, SEK Million |
663.3 |
498.2 |
33.1% |
2,110.9 |
| adjusted for currency flucs.&
corp.acqs |
|
|
17.4% |
|
| Gross profit |
324.5 |
256.5 |
26.5% |
1,042.3 |
| Gross margin % |
48.9% |
51.5% |
-2.6% |
49.4% |
| Operating cost, SEK Million |
-209.8 |
-175.5 |
19.5% |
-719.4 |
| Operating profit |
114.7 |
81.0 |
41.6% |
322.9 |
| Operating margin % |
17.3% |
16.3% |
1.0% |
15.3% |
The strong volume trend coupled
with the synergy benefits from last year’s acquisitions,
have contributed to the operating profit in Q1 climbing by 41.6%.
The lower gross margin is mainly attributable to lower margins
within the wound care sector.
Activities
The integration of Parker Bath in the business area’s
structure is complete and the business is contributing positively
to results.
The business area’s new
hoists for institutional use – Opera and Tempo – were
successfully launched during Q1.
Bravo, the new ceiling hoist, was
introduced to customers in North America during Q1. Bravo will be
available for European customers during Q4.
Medical
The independent Medical product line that includes the companies
LIC Audio and NeuroMédica reported net sales of SEK 17.3 million
(17.2). The operating profit was SEK 1.5 million (2.2).
Getinge’s new issue
fully subscribed
By utilizing primary preferential rights, 99.7% of the shares
were subscribed for in Getinge’s new issue in 2001. Because
the application for secondary preferential rights over-exceeded
the number of remaining shares, the new issue will be fully
subscribed.
Next report
The next report from the Getinge Group (Q2 2001) will be
published on 16 July 2001.
Getinge 23 April 2001
Johan Malmquist
President
A tele-conference will be held
today at 6 p.m. Swedish time.
To take part please ring +44 (0) 20 82 40 8241, codeword:
Getinge.
| Income
Statements |
2001 |
2000 |
Change |
2000 |
| SEK
Million |
Q1 |
Q1 |
|
FY |
| Net
sales 1) |
1,919.0 |
1,167.9 |
64.3% |
5,253.5 |
| Cost
of goods sold 2) |
-1,080.0 |
-654.5 |
65.0% |
-3,056.2 |
| Gross
profit |
839.0 |
513.4 |
63.4% |
2,197.3 |
| Gross
margin |
43.7% |
44.0% |
-0.3% |
41.8% |
| Selling
expenses 2) |
-376.0 |
-221.6 |
69.7% |
-942.0 |
| Administrative
expenses 2) |
-201.6 |
-125.2 |
61.0% |
-474.4 |
| Research
& development costs 2) |
-53.8 |
-22.1 |
143.4% |
-101.5 |
| Other
operating income 2) |
23.8 |
11.6 |
105.2% |
26.9 |
| Other
operating cost 2) |
-3.2 |
-4.1 |
-22.0% |
-9.3 |
| Items
affecting comp. (SPP) |
– |
– |
– |
23.2 |
| Operating
profit 3) |
228.2 |
152.0 |
50.1% |
720.2 |
| Operating
margin |
11.9% |
13.0% |
-1.1% |
13.7% |
| Interest
income |
4.9 |
4.4 |
|
18.7 |
| Interest
expense |
-63.8 |
-22.4 |
|
-108.3 |
| Other
financial items |
-2.1 |
1.6 |
|
-6.4 |
| Ass.companies'
loss |
– |
– |
|
-0.5 |
| Profit
before tax |
167.2 |
135.6 |
23.3% |
623.7 |
| Taxes |
-50.1 |
-33.9 |
|
-155.9 |
| Net
profit |
117.1 |
101.7 |
15.1% |
467.8 |
| |
|
|
|
|
| 1)
Adjusted for currency fluctuations and company
acquisitions |
| the
net sales' change is 5%. |
|
|
|
|
| 2)
Due to the reclassification of certain costs, some minor
transfers |
| have
been made in the comparison from operating cost to cost
of goods sold. |
| 3)
Operating profit is charged with |
|
|
|
|
| —
amortisation on goodwill |
-37.3 |
-15.1 |
|
-65.8 |
| —
depr. on other fixed assets |
-49.5 |
-32.4 |
|
-129.3 |
| |
-86.8 |
-47.5 |
|
-195.1 |
| |
|
|
|
|
| |
|
|
|
|
| Quarterly
results |
1999 |
1999 |
1999 |
1999 |
2000 |
2000 |
2000 |
2000 |
2001 |
| SEK
Million |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
| Net sales |
1,183.1 |
1,197.9 |
1,074.8 |
1,428.9 |
1,167.9 |
1,251.6 |
1,200.7 |
1,633.3 |
1,919.0 |
| Cost of
goods sold |
-644.5 |
-660.7 |
-622.2 |
-799.6 |
-654.5 |
-745.7 |
-721.2 |
-934.8 |
-1,080.0 |
| Gross profit |
538.6 |
537.2 |
452.6 |
629.3 |
513.4 |
505.9 |
479.5 |
698.5 |
839.0 |
| Operating
cost |
-361.2 |
-372.9 |
-342.7 |
-388.7 |
-361.4 |
-356.6 |
-361.5 |
-420.8 |
-610.8 |
| Items
affecting comp. |
|
|
|
|
|
|
|
23.2 |
|
| Operating
profit |
177.4 |
164.3 |
109.9 |
240.6 |
152.0 |
149.3 |
118.0 |
300.9 |
228.2 |
| Financial
net |
-16.0 |
-8.4 |
-17.8 |
-12.8 |
-16.4 |
-24.2 |
-26.5 |
-28.9 |
-61.0 |
| Ass.comp.s'
profit/loss |
-0.3 |
-0.3 |
-0.3 |
-0.1 |
0.0 |
0.0 |
0.0 |
-0.5 |
0.0 |
| Profit
before tax |
161.1 |
155.6 |
91.8 |
227.7 |
135.6 |
125.1 |
91.5 |
271.5 |
167.2 |
| Tax |
-40.2 |
-39.0 |
-23.0 |
-56.3 |
-33.9 |
-31.3 |
-22.8 |
-67.9 |
-50.1 |
| Net profit |
120.9 |
116.6 |
68.8 |
171.4 |
101.7 |
93.8 |
68.7 |
203.6 |
117.1 |
| |
|
|
|
|
|
|
|
|
|
| Balance
Sheets |
2001 |
2000 |
2000 |
| Assets
SEKMillion |
31 March |
31 March |
31 Dec |
| Subscribed
capital unpaid |
489.5 |
– |
– |
| Intangible
fixed assets |
2,762.0 |
1,001.4 |
2,450.9 |
| Tangible
fixed assets |
1,335.8 |
742.6 |
1,228.1 |
| Financial
assets |
415.3 |
73.4 |
391.4 |
| Stock-in-trade |
1,672.2 |
868.1 |
1,268.7 |
| Current
receivables |
2,688.0 |
1,546.0 |
2,456.9 |
| Liquid funds |
376.9 |
211.4 |
235.4 |
| Total
assets |
9,739.7 |
4,442.9 |
8,031.4 |
| Shareholders'
equity & Liabilities |
|
|
|
| Shareholders'
equity |
2,652.7 |
1,656.9 |
1,931.0 |
| Minority
interests |
8.8 |
– |
8.8 |
| Provisions |
2,077.3 |
103.3 |
1,928.5 |
| Long-term
liabilities |
73.6 |
53.5 |
67.0 |
| Current
liabilities |
4,927.3 |
2,629.2 |
4,096.1 |
| Total
Equity & Liabilities |
9,739.7 |
4,442.9 |
8,031.4 |
| |
|
|
|
| Funds
Statements |
2001 |
2000 |
2000 |
| SEK
Million |
Q1 |
Q1 |
FY |
| Operations |
|
|
|
| Profit
before tax |
167.2 |
135.6 |
623.7 |
| Depreciations
& amortizations |
86.8 |
47.5 |
195.1 |
| |
254.0 |
183.1 |
818.8 |
| Taxes paid |
-58.3 |
-30.0 |
-120.8 |
| Cash flow
before changes in working capital |
195.7 |
153.1 |
698.0 |
| Changes in
working capital |
|
|
|
| Stock-in-trade |
-245.8 |
-102.3 |
-106.4 |
| Rental
equipment |
-6.0 |
-4.3 |
-25.6 |
| Current
receivables |
-26.1 |
79.7 |
-263.3 |
| Current
operating liabilities |
-18.7 |
-45.9 |
-48.4 |
| Restructuring
reserves, utilised |
-43.1 |
-15.5 |
-55.1 |
| Cash flow
from operations |
-144.0 |
64.8 |
199.2 |
| Investments |
|
|
|
| Acquisition
of subsidiaries |
-303.8 |
-2.6 |
-760.7 |
| Investments
in tangible fixed assets |
-38.8 |
-22.4 |
-110.3 |
| Cash flow
from investments |
-342.6 |
-25.0 |
-871.0 |
| Financial
activities |
|
|
|
| New share
issue |
0.2 |
– |
– |
| Change in
interest-bearing debt |
665.7 |
30.1 |
1,027.7 |
| Change in
long-term receivables |
-1.4 |
-10.9 |
-63.0 |
| Dividend
paid |
– |
– |
-159.0 |
| Translation
differences |
-36.4 |
-6.4 |
-57.3 |
| Cash flow
from financial activities |
628.1 |
12.8 |
748.4 |
| Cash flow
for the period |
141.5 |
52.6 |
76.6 |
| Liquid funds
at begin of the year |
235.4 |
158.8 |
158.8 |
| Liquid funds
at end of the period |
376.9 |
211.4 |
235.4 |
| |
|
|
|
| Net
interest-bearing debt |
2001 |
2000 |
2000 |
| SEK
Million |
31 March |
31 March |
31 Dec |
| Debt to
credit institutions |
3,680.3 |
1,677.4 |
2,933.5 |
| Pension
provisions |
1,174.3 |
26.9 |
1,121.7 |
| Less liquid
funds |
-376.9 |
-211.4 |
-235.4 |
| Net
interest-bearing debt |
4,477.7 |
1,492.9 |
3,819.8 |
| |
|
|
|
| Changes
to shareholders' equity |
2001 |
2000 |
2000 |
| SEK
million |
31 March |
31 March |
31 Dec |
| Shareholders'
equity – opening balance |
1,931.0 |
1,560.8 |
1,560.8 |
| New share
issue in progress |
489.7 |
– |
– |
| Dividend
distributed |
– |
– |
-159.0 |
| Translation
differences |
114.9 |
-5.6 |
61.4 |
| Net profit
for the period |
117.1 |
101.7 |
467.8 |
| Shareholders'
equity – closing balance |
2,652.7 |
1,656.9 |
1,931.0 |
| Orders
received |
2001 |
2000 |
Change |
Adj f acq's |
2000 |
| per
business unit |
Q1 |
Q1 |
|
& curr.fluct's |
FY |
| Sterilization |
499.5 |
479.4 |
4.2% |
-9.1% |
1,930.9 |
| Disinfection |
231.4 |
211.4 |
9.5% |
-7.9% |
956.1 |
| Infection
Control total |
730.9 |
690.8 |
5.8% |
-8.7% |
2,887.0 |
| Surgical
Systems |
541.3 |
45.1 |
1100.2% |
-47.3% |
157.8 |
| |
|
|
|
|
|
| Hygiene
Systems |
297.8 |
208.0 |
43.2% |
29.7% |
899.7 |
| Patient
Handling |
258.4 |
191.2 |
35.1% |
19.6% |
797.0 |
| Wound Care |
140.1 |
114.8 |
22.0% |
2.2% |
441.0 |
| Extended
Care total |
696.3 |
514.0 |
35.5% |
19.8% |
2,137.7 |
| Medical |
17.4 |
16.4 |
6.1% |
3.5% |
60.8 |
| Total orders
received |
1,985.9 |
1,266.3 |
56.8% |
1.6% |
5,243.3 |
| |
|
|
|
|
|
| Net sales |
2001 |
2000 |
Change |
Adj f acq's |
2000 |
| per
business unit |
Q1 |
Q1 |
|
& curr.fluct's |
FY |
| Sterilization |
454.3 |
404.0 |
12.5% |
-0.6% |
1,964.7 |
| Disinfection |
228.0 |
214.0 |
6.5% |
-4.8% |
969.9 |
| Infection
Control total |
682.3 |
618.0 |
10.4% |
-2.1% |
2,934.6 |
| Surgical
Systems |
556.1 |
34.5 |
1511.9% |
-43.0% |
146.6 |
| |
|
|
|
|
|
| Hygiene
Systems |
265.1 |
188.7 |
40.5% |
27.1% |
904.8 |
| Patient
Handling |
255.7 |
193.8 |
31.9% |
16.1% |
772.3 |
| Wound Care |
142.5 |
115.7 |
23.2% |
3.5% |
433.8 |
| Extended
Care total |
663.3 |
498.2 |
33.1% |
17.4% |
2,110.9 |
| Medical |
17.3 |
17.2 |
0.6% |
-1.6% |
61.4 |
| Total net
sales |
1,919.0 |
1,167.9 |
64.3% |
5.0% |
5,253.5 |
| |
|
|
|
|
|
| Key
figures |
2001 |
2000 |
Change |
2000 |
| |
Q1 |
Q1 |
|
FY |
| Orders
received, SEK Million |
1,985.9 |
1,266.3 |
56.8% |
5,243.3 |
| adjusted for
currency flucs.& corp.acqs |
|
|
1.6% |
|
| Net sales,
SEK Million |
1,919.0 |
1,167.9 |
64.3% |
5,253.5 |
| adjusted for
currency flucs.& corp.acqs |
|
|
5.0% |
|
| Financial
net |
-61.0 |
-16.4 |
272.0% |
-96.0 |
| Profit
before tax, SEK Million |
167.2 |
135.6 |
23.3% |
623.7 |
| Net profit,
SEK Million |
117.1 |
101.7 |
15.1% |
467.8 |
| Nmb of
shares before 2001 issue |
45,421,632 |
45,421,632 |
0.0% |
45,421,632 |
| Nmb of
shares after 2001 issue 1) |
50,468,480 |
|
0.0% |
|
| Earnings per
share after full tax, SEK 1) |
2.58 |
2.24 |
15.1% |
10.3 |
| Operating
capital, SEK Million |
3,845.9 |
3,029.5 |
26.9% |
3,356.8 |
| Return on
operating capital, per cent |
20.1% |
22.0% |
-1.9% |
20.8% |
| Net
debt/equity ratio, multiple |
1.69 |
0.90 |
0.79 |
1.98 |
| Equity/assets
ratio, per cent |
27.2% |
37.3% |
-10.1% |
24.0% |
| Equity per
share, SEK 1) |
58.40 |
36.48 |
60.1% |
42.51 |
| Cash flow
from operations, SEK Million |
-144.0 |
64.8 |
|
199.2 |
| Investments,
tangible fixed assets, SEK million |
38.8 |
22.4 |
|
-110.3 |
| Number of
employees at the period's end |
5,443 |
3,800 |
|
5,298 |
| |
|
|
|
|
| 1)
At the end of March 2001, only an insignificant part (SEK
0.2 m) of the estimated total liquidity (SEK 489.7 m)
from the current new issue had |
| been
received by the company. For calculating the EPS and
equity per share, the number of shares before the new
issue has been used. After |
| the
new issue has been finalized in April, the translation
factor for historical per-share data, taking into account
the bonus issue element in |
| the new
share issue, will be 0.9717. |
|
|
|
|
| |
|
|
|
|
The accounting principles applied
in this report are the same as in Getinge Industrier’s for
2000.
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