STOCKHOLM, Sweden, Jan. 28, 2002 (PRIMEZONE) -- Getinge:
-- Orders received increased organically by 10% during Q4
-- Strong profit performance in the quarter. The operating profit
climbed by 35% to SEK 373.6 million (277.7)(1)
-- The acquisition of Heraeus strengthens Getinge's position within
Surgical Systems
-- All business areas progressed well during the quarter
-- Orders received soared by 60% to SEK 8,375.7 million (5,243.3)
-- Net sales rose by 55% to SEK 8,148.2 million (5,253.5)
-- The operating profit rose by 40% to SEK 974.0 million (697.0)(1)
-- The profit before tax was up by 25% at SEK 750.4 million
(600.5)(1)
-- Improved cash-flow during the quarter
-- The proposed dividend per share increased to 3:75 kr (3:50)
(1) See note 4 page 6
The Quarter
The Group's orders received were very good for Q4 and organic growth was 10%. For the full year, organic growth was 7.3%, which is above the long- term goal of 5%. Volume growth was good for all business areas and in most markets. The increase in the North American markets was strong, especially for the Infection Control business area. Sizeable invoicing during Q4 boosted profits for all business areas.
Outlook
The order books at the end of 2001 were at a very healthy level and market conditions for all business areas appear favourable. The profit outlook for all business areas is good and the Infection Control business area is expected to report a strong rise in profits. The acquisition of Heraeus, which was announced recently, will mean a significant boost for profits in the Surgical Systems business area from 2003, although the effect on the Group's profit in the current year will be insignificant.
Business Area Surgical Systems Market developments 2001 2000 2001 2000 Orders received per market Q 4 Q 4 12 Mon. 12 Mon. USA and Canada 134,9 43,6 427,9 129,0 Great Britain 25,3 116,3 Germany 126,5 590,8 Other Western Europe 184,1 1,8 620,6 1,8 Rest of the world 112,2 -0,2 507,2 27,0 Business area total 583,0 45,2 2.262,8 157,8
Orders received by the business area continued to be good in most markets. Growth in Q4 was especially good in North America, the Benelux countries and the French market. Further orders were secured during the quarter for the new operating table system, VIWAS.
Results 2001 2000 2001 2000
Q 4 Q 4 12 Mon. 12 Mon.
Net sales, SEK 634,6 37,3 2.223,4 146,6
Million
Gross profit 328,2 14,6 1.108,9 44,4
Gross margin % 51,7% 39,1% 49,9% 30,3%
Operating cost, SEK -252,8 -9,4 -880,5 -45,4
Million
Operating profit 75,4 5,2 228,4 -1,0
Operating margin % 11,9% 13,9% 10,3% -0,7%
The business area's results continued to progress strongly. Good performance in volumes led to good utilisation of capacity, with rising gross margins as a result. Volumes and profits were especially strong for the surgical lights business unit during the period.
Restructuring Programme
The key parts of the previously announced restructuring programme had been completed by the end of the year. Savings of around SEK 140-150 million in the current year will have positive effects for both the Surgical Systems and Infection Control business areas.
Disposal of ALM's Surgical Table Business
The process of divesting ALM's surgical table business is proceeding according to plan. Negotiations with potential buyers will start during the current quarter. The sale will affect the business area's earnings negatively during the current year, but volumes should be recovered by 2003. The negative effect on earnings is estimated at SEK 15 million.
Acquisition of Heraeus
The acquisition of Heraeus Medical Technology significantly strengthens the position of the business area within two segments - surgical lamps and ceiling service units. The acquisition will boost the business area's results considerably from 2003.
Business Area Infection Control
Market developments 2001 2000 Change 2001 2000 Change
Orders received
per market Q 4 Q 4 12 Mon. 12 Mon.
Western Europe 405,6 351,6 15,4% 1.465,1 1.270,9 15,3%
USA and Canada 425,0 310,2 37,0% 1.451,1 1.169,8 24,0%
Asia/Australia 94,9 66,0 43,8% 325,7 265,3 22,8%
Rest of the world 70,9 43,8 61,9% 162,2 181,0 -10,4%
Business area total 996,4 771,6 29,1% 3.404,1 2.887,0 17,9%
adjusted for
currency flucs.
& corp. acqs 17,3% 3,8%
Orders received during the period grew organically by 17% and all regions reported strong growth. In North America organic growth was 19%. Other areas which performed positively were Scandinavia, the Benelux countries, Germany and the developing markets in Central Europe and South East Asia. Volumes grew at a weaker rate in southern Europe.
Results 2001 2000 Change 2001 2000 Change
Q 4 Q 4 12 Mon. 12 Mon.
Net sales,
SEK Million 1.039,7 946,5 9,8% 3.204,3 2.934,6 9,2%
adjusted
for
currency
flucs. &
corp.
acqs. -2,5% -3,7%
Gross profit 407,7 364,8 11,8% 1.153,7 1.090,7 5,8%
Gross margin % 39,2% 38,5% 0,7% 36,0% 37,2% -1,2%
Operating cost,
SEK Million -248,8 -209,1 19,0% -832,9 -722,2 15,3%
Operating profit 158,9 155,7 2,1% 320,8 368,5 -12,9%
Operating
margin % 15,3% 16,5% -1,2% 10,0% 12,6% -2,6%
Invoiced sales after adjustments for exchange rate differences and acquisitions were slightly lower during the quarter, but cost reductions helped to boost profit margins and the operating profit was therefore at around the same level as the previous year.
World Sterilizer Project (WSP)
WSP is progressing as planned. At the start of 2002, it was announced that the labour force at the Rochester, USA, production unit would be cut by around 30%, or 100 jobs. Further measures aimed at reinforcing the competitive strength of the Sterilization business unit will be announced in Q1. When the new production structure is in place in the beginning of the second half of the year, annual savings will be in the region of SEK 60-70 million. Costs for implementing WSP are estimated at around SEK 60 million for the current year. The business area's results for 2002 will be offset by net costs of around SEK 25 million because of the project.
Business area Extended Care
Market developments 2001 2000 Change 2001 2000 Change Orders received per market Q 4 Q 4 12 Mon. 12 Mon. USA and Canada 255,6 214,2 19,3% 962,8 770,5 25,0% Great Britain 203,4 170,9 19,0% 737,2 568,6 29,7% Germany 64,8 60,4 7,3% 271,5 237,2 14,5% Other Western Europe 167,5 159,2 5,2% 579,0 477,7 21,2% Rest of the world 27,1 23,1 17,3% 93,4 83,7 11,6% Business area total 718,4 627,8 14,4% 2.643,9 2.137,7 23,7% adjusted for currency flucs.& corp.acqs 6,8% 12,2%
Orders received for the business area grew organically by 7% during Q4. Organic growth was 9% in North America and 13% in the UK. Growth in Scandinavia and Germany was weaker during Q4, while the trend in Spain, Italy and France continued to be good.
Results 2001 2000 Change 2001 2000 Change
Q 4 Q 4 12 Mon. 12 Mon.
Net sales,
SEK Million 762,4 633,6 20,3% 2.655,5 2.110,9 25,8%
adjusted for
currency
flucs. &
corp.acqs 12,0% 14,2%
Gross profit 379,9 313,6 21,1% 1.307,1 1.042,3 25,4%
Gross margin % 49,8% 49,5% 0,3% 49,2% 49,4% -0,2%
Operating cost,
SEK Million -241,2 -198,6 21,5% -885,8 -719,3 23,1%
Operating profit 138,7 115,0 20,6% 421,3 323,0 30,4%
Operating margin % 18,2% 18,2% 0,0% 15,9% 15,3% 0,6%
The operating profit for the period climbed by 21% due to good growth in volumes. All business units reported improved earnings for the quarter.
Closure of GTTI
A decision was made during the quarter to close down the business area's manufacturing unit in Traverse City, Michigan, USA. Production of the patented Freedom Bath will move to Eslov, Sweden, during Q2. Annual savings will be around SEK 6 million.
Medical
The independent business area Medical that includes the companies LIC Audio and NeuroMedica reported net sales of SEK 19.8 million (15.9 m) for Q4 and SEK 65.0 million (61.4 m) on an annual basis. The operating profit was SEK 0.6 million (1.8 m) for Q4 and SEK 3.5 million (6.5 m) on an annual basis.
Long-Term Financing
As part of a long-term financing plan, Getinge has mandated Nordea and Commerzbank to arrange a 5-year credit facility amounting to EUR 150 million with a bank syndicate. Barclays Bank and Handelsbanken will act as co-arrangers. The new credit facility will enable a better balance between the company's short-term and long-term credit.
Dividend
The Board and President propose an increased dividend per share for 2001 of SEK 3.75 (3.50), a total amount of SEK 189.3 million (159,0). The proposed record date is 23 April 2002. VPC expects to send the dividend to shareholders on 26 April 2002.
AGM
The Annual General Meeting of Shareholders for Getinge AB will be held at 4 p.m. on 18 April 2002 in Getinge. The Annual Report will be sent to shareholders at the latest two weeks before the AGM. Shareholders wishing to attend the meeting must be registered in the share register kept by VPC AB by 8 April 2002 at the latest, and notification of their participation shall have reached Getinge's head office by 12 April 2002 at the latest.
Next Report
The next report from the Getinge Group (Q1 2002) will be published on 18 April 2002.
A tele-conference will be held today at 3 p.m. Swedish time. To take part please ring +44 (0) 20 82 40 8241, codeword: Getinge.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download: www.waymaker.net/bitonline/2002/01/28/20020128BIT00440/bit0002.doc The full Year-end report www.waymaker.net/bitonline/2002/01/28/20020128BIT00440/bit0002.pdf The full Year-end report