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Getinge to further streamline its operations and submits an updated earnings outlook for the 2009 financial year

Getinge to further streamline its operations and submits an updated earnings outlook for the 2009 financial year

Getinge, 14 January 2010

During the fourth quarter of 2009, the Getinge Group will be posting additional provisions for planned restructuring activities in addition to the amount previously announced. Restructuring costs in the fourth quarter of 2009 will total SEK 193 million. Of this amount, SEK 84 million pertains primarily to the integration of Datascope and the Cardiac and Vascular Divisions for which, as planned, SEK 227 million will be charged against profit for the year. The remaining SEK 109 million provision for restructuring activities in the fourth quarter pertains to new and additional activities in the Infection Control and Extended Care business areas. In line with Infection Control’s manufacturing strategy, the intention is to discontinue production at the unit in Peiting, Germany, and to relocate portions of the production concerned to the business area’s unit in Växjö, Sweden. The business area also intends to discontinue production in Lynge, Denmark, and transfer this to Getinge, Sweden. Consultation with the employees involved and trade union representatives has been initiated. The costs for the planned activities amount to approximately SEK 85 million and are expected to result in annual savings of approximately SEK 40 million, effective from 2011. Within Extended Care, discussions have been initiated with appropriate employee representatives concerning the merger of the business area’s two sales companies in France. Costs for merging the two sales companies are estimated at SEK 24 million, which will result in annual profit increases of SEK 15 million from 2011. Taking into account the additional restructuring costs of approximately SEK 109 million that will be charged against the 2009 financial year, it is the Group’s assessment that the year’s pre-tax profit will slightly exceed SEK 2,600 million, which is a significant improvement compared with the earnings outlook submitted at Getinge’s Capital Markets Day on 4 December. For further information: Johan Malmquist, CEO Ulf Grunander, CFO +46 (0)35-15 55 00

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