Getinge AB specifies integration and restructuring costs for the second quarter of 2008 and the full year
As part of the integration of Huntleigh into the Extended Care business area and the recently acquired cardiac and vascular surgery divisions within the Medical Systems business area, the current year will be charged with integration and restructuring costs, as announced earlier.
The integration costs for the period, which largely pertain to the relocation of production from Luton, in the UK, to the recently completed plant in China, will be charged to the second quarter in a total amount of SEK 54 million.
For the current full year, the integration costs for Huntleigh are expected to amount to SEK 145 million, which is in line with earlier announcements.
At the end of the year, the total integration costs since the acquisition of Huntleigh in 2007 will amount to approximately SEK 400 million, which is in line with the original plan. Annual savings resulting from cuts and efficiency measures will exceed SEK 300 million annually from 2009, which is an improvement on the original plan.
Integration of cardiac and vascular surgery divisions
During the second quarter of the year, and as has already been announced, a decision was made to transfer the production of the cardiac surgery division from Dorado, in Puerto Rico, to the production unit in Wayne, New Jersey, US. As a result of this decision, earnings for the second quarter of the year will be charged with nonrecurring costs of SEK 43 million.
For the year in its entirety, integration costs are expected to amount to SEK 60 million, which is lower than the announced amount of about SEK 85 million. The remaining restructuring costs of about SEK 25 million are expected to be charged to earnings during the first six months of 2009.
As announced earlier, savings from the announced and planned integration activities will lead to annual cost savings of SEK 100-120 million per year starting in 2010.