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Announcement of the financial statement for 1999

THE GETINGE GROUP PRESS RELEASE FROM GETINGE INDUSTRIER AB ANNOUNCEMENT OF THE FINANCIAL STATEMENT FOR 1999 31 JANUARY 2000 * ORDERS RECEIVED TOTALLED SEK 4,932.2 MILLION (SEK 4,304.0 M) -AN INCREASE OF 14.6% * NET SALES TOTALLED SEK 4,884.7 MILLION (SEK 4,345.0 M) - AN INCREASE OF 12.4% * THE OPERATING PROFIT PRIOR TO ITEMS AFFECTING COMPARABILITY ROSE 6.0% TO SEK 692.2 MILLION (SEK 652.9 M) * THE PROFIT BEFORE TAX WENT UP 5.6% TO SEK 636.2 MILLION (SEK 602.6 M) * SIGNIFICANTLY IMPROVED OPERATING CASH FLOW * EPS AFTER FULL TAX WAS SEK 10.52 (SEK 10.50) * PROPOSED DIVIDEND OF SEK 3.50 PER SHARE (SEK 3.25) The Getinge Group Getinge Industrier is an expanding medical-technical group that works in two areas, namely products and systems for combating infection and products and accessories for the lifting and hygiene of the elderly and disabled. The description of business is divided into these two areas as of this financial statement. Sterilisation and Disinfection constitute the Infection Control business area. The activities aimed at care of the elderly come under the Geriatrics business area. This new form reflects a better way of showing how the Group works with its customers, and at the same time simplifies comparisons with other companies. Orders received Orders received by the Getinge Group rose by 14.6% totalling SEK 4,932.2 million (SEK 4,304.0 m). Adjusted for company acquisitions and exchange rate fluctuations, orders received increased by 4.4%. During Q4, orders received totalled SEK 1,268.3 million (SEK 1,229.6 m) - a rise of 3.1%. Demand for the Group's products has been good over the past year with the exception of the North American market. The Geriatrics business area has seen a majority of the European markets develop significantly, above all Southern Europe and the important markets in Germany and the UK. As far as the developing markets are concerned, which make up a smaller part of the business area's sales, volume growth has been very strong. The Infection Control business area has seen a more stable performance on the Western European industrial and hospital markets, whereas the geriatric care market has seen robust progress. The developing markets that constitute about 15% of the business area's volumes have performed well and above all, demand in the Far East and Latin America was good. Excluding the North American market the Group's orders received rose 19.6%. Adjusted for company acquisitions and exchange rate fluctuations, the increase was 8.2%. The North American market, which represents 40% of the Group's sales, has stagnated over the past year. In the Infection Control business area a stronger industrial market has compensated for a weak hospital market. Demand in the Geriatrics business area was somewhat below last year's level. The changes and reductions introduced under the new federal reimbursement system for Medicare have had a major impact this year. A majority of suppliers in the geriatric care sector have seen a slump in volumes, which means that this year's level of orders received was satisfactory as it was similar to last year's. Net sales Net sales climbed 12.4% to SEK 4,884.7 million (SEK 4,345.0 m). Adjusted for company acquisitions and exchange rate fluctuations, net sales rose 2.7%. Profits The Getinge Group's operating profit prior to items affecting comparability rose 6.0% to SEK 692.2 million (SEK 652.9 m), which is equivalent to 14.2% (15.0%) of net sales. Net financial items totalled -SEK 55.0 million (-SEK 65.0 m), of which net interest income/expense made up -SEK 51.7 million (-SEK 62.7 m). The Group's profit before tax rose 5.6% to SEK 636.2 million (SEK 602.6 m), which is equivalent to 13.0% (13.9%) of net sales. The return on capital employed was 23.2% (25.0%). Financial position and equity/assets ratio The Group's net debt was SEK 1,514.9 million (SEK 1,722.4 m). The Group's operating cash flow significantly improved and was SEK 437.1 million (-SEK 13.5 m). Shareholders' equity at the period's end was SEK 1,560.8 million (SEK 1,221.0 m), giving an equity/assets ratio of 35.7% (27.6%). Investments Net investments in machinery, equipment and buildings, but excluding rental equipment, totalled SEK 167.4 million (SEK 131.8 m). The year's increase is mainly due to investment in production facilities and production tools, as well as IT investments. Staff The number of employees was 3,812 (3,724), of whom 824 (794) are in Sweden. Effect of the Y2K problem The Getinge Group has not had any Y2K-related disruptions. The changeover to the new millennium was problem-free for the Group's own activities and the products it manufactures. Infection Control business area The business area provides customers in industry and in the health and geriatric care sectors with comprehensive solutions for preventing the emergence and spread of infections. Products are marketed under the brand name "Getinge". The business area consists of two product lines, Sterilisation and Disinfection. INFECTION CONTROL 1999 1998Change Q4 1999 Q4 1998Change Orders received, SEK 2.884,6 2.524,1 14,3% 755,5 725,8 4,1% Million Net sales 2.811,1 2.615,7 7,5% 894,6 879,4 1,7% Gross profit 1.108,7 1.028,8 7,8% 363,9 345,8 5,2% Gross margin, % 39,4% 39,3% 0,1% 40,7% 39,3% 1,4% Operating cost, SEK -743,3 -665,8 11,6% -213,8 -208,1 2,7% Million Operating profit 365,4 363,0 0,7% 150,1 137,7 9,0% Operating margin, % 13,0% 13,9% -0,9% 16,8% 15,7% 1,1% Adjusted for corporate acquisitions and currency fluctuations, the business area's orders received rose 5.9%, while net sales were at last year's level. In the largest customer sector, health care, there was a weak start to the year on all markets. After this, demand gradually improved and for the year as a whole organic growth was at a satisfactory level. There was a good start to the year for the orders received figure on the industrial market but it got weaker towards the end of the year. The amount of inquiries from industrial customers continued to be very good, but a number of decisions about orders and deliveries have been put on hold. The volume trend has been good in the geriatric care customer segment. The operating profit is at last year's level. Inferior results from the American activities and a weaker industrial market have been compensated by strong volume growth in the Disinfection product line, as well as a profit contribution from last year's acquisitions. ------------------------------------------------------------ Please visit for further information The following files are available for download: Full Report Full Report