Getinge Q1 report for January-March 2004

Getinge Group Q1 report for January - March 2004 ¨ Orders received climbed 22% to SEK 2,635.2 million (2.165.4) ¨ Net sales climbed 24% to SEK 2,491.6 million (2.003.0) ¨ Profit before tax rose 38% to SEK 240.7 million (174,0) ¨ Net profit rose 36% to SEK 168.5 million (123.5) ¨ EPS rose 36% to SEK 0.83 (0.61) ¨ Organic orders received increased 6.7% ¨ All business areas are performing well ¨ Profit outlook remains good Q1 2004 Orders received Orders received for the Group came in with a solid organic growth by 6.7%. Good market coverage in Western Europe has compensated for weaker demand. Demand remains good on the North American and developing markets. Orders received continued to be good for Infection Control and Extended Care, with the latter noting an upturn in volumes in the final quarter of 2003. Medical Systems, with its strong dependence on the European healthcare market, performed according to plan with a small growth in volumes. Results The Group's profit before tax soared 38% in Q1 to SEK 240.7 million (174.0 m). The improved profit is an effect of good volume growth and earnings from the new acquisitions, Jostra and Siemens LSS. Exchange rate effects had an impact of around SEK 50 million on earnings. Infection Control's earnings, which were affected by most of the Group's exchange rate effects, are at the same level as the previous quarter last year. Extended Care improved earnings significantly on the back of volume increases and good cost control. Within Medical Systems, weak volume growth for Surgical Workplaces were offset by lower costs, which combined with an earnings contribution from the acquisition of Jostra and Siemens LSS, have led to an impressive growth in earnings. Outlook The Group performed well in the first quarter of the year, in terms of both earnings and volumes, which forms a strong base for progress during the year. Extended Care is benefiting from a better cost structure, which was established during 2003. Demand remains good and several product launches in the coming quarter are expected to boost volume growth. The positive development of Infection Control that started in 2003 continues. Structural measures will lead to a continued rise in operating margins, while improved market coverage will mean good volume growth. Of the Group's negative exchange rate effects, estimated at around SEK 135 million for the year, around SEK 80 million will impact on Infection Control, of which most will occur in Q1 and Q2. The expected earnings growth will thus be concentrated in the second half of the year. Medical Systems is also advancing positively. The lower volume growth announced for Surgical Workplaces is being compensated by good cost control and pricing discipline, which means that earnings are expected to rise. The earnings contribution from the Jostra and Siemens acquisitions are expected to boost Group earnings by around SEK 150 million annually. As with the situation at the start of the year, the earnings outlook after the first 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 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/04/21/20040421BIT00430/wkr0001.doc THe Full report http://www.waymaker.net/bitonline/2004/04/21/20040421BIT00430/wkr0002.pdf The Full report