STOCKHOLM, Sweden, July 15, 2004 (PRIMEZONE) -- Getinge:
-- Orders received climbed 25% to SEK 5,260.6 million (4,202.2) -- Net sales rose 23% to SEK 5,079.7 million (4,140.6) -- Profit before tax climbed 21% to SEK 540.4 million (447.7) -- Net profit went up 19% to SEK 378.3 million (317.9) -- EPS rose19% to SEK 1.87 (1.57) -- The growth in organic orders received rose 7.8% over the quarter -- Positive operating cash flow in the quarter -- Profit outlook remains good
Q2 2004
Orders received
The Group's total orders received rose organically by a good 7.8% over the quarter. A certain improvement in demand in Western Europe can be seen coupled with demand remaining good on the North American and developing markets.
Organic orders received rose 19% for Infection Control with good increases in most geographic regions.
Medical Systems' orders received fell somewhat, mainly on the back of quotations not being finalized on the developing markets. On the business area's important Western European market orders received climbed organically by 6%.
Extended Care's orders received rose organically in Q2 by 3.4%. Western Europe performed well while North America was weaker, which was expected.
Results
The Group's profit before tax rose by 9.5%, which should be compared with a strong Q2 last year when profit growth was 53%. The improvement in Q2 is primarily an effect of good cost controls and earnings from the Jostra and Siemens LSS acquisitions. Exchange rate effects had an impact of around SEK 40 million on Q2's profits.
Infection Control's profit is somewhat lower than last year's figure due to low invoicing volumes and negative exchange rate effects.
Continued good pricing discipline and cost controls, coupled with the earnings from the new acquisitions have meant good profit growth for Medical Systems.
Extended Care's profit improvement is an effect of good cost control and some volume growth.
The Group's operating cash flow continued to develop well and stood at SEK 502 million in Q2 (406 m).
Outlook
Demand on the North American market and developing markets is expected to continue to be positive while demand in Western Europe should improve gradually.
Extended Care's demand and growth in both Western Europe and North America is expected to be good. The cost structure established in 2003 and several product launches in the coming year are expected to boost profit growth.
Infection Control is expected to underpin its operating profit and operating margin in the current year. Exchange rate effects will diminish in the second half of the year at the same time as invoicing volumes are expected to climb.
Medical Systems' volume growth in Surgical Workplaces is expected to be lacklustre in the coming year, which will be compensated by a better cost structure and synergy effects. Earnings from Jostra and Siemens LSS are expected to boost the Group's profit before tax by around SEK 150 million.
In summary and similar to the position at the end of Q1, the profit outlook after the second 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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