Getinge Q1 report for January-March 2004

STOCKHOLM, Sweden, April 21, 2004 (PRIMEZONE) -- 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 andExtended Care, with the latter noting an upturn in volumes in the finalquarter of 2003.

Medical Systems, with its strong dependence on the Europeanhealthcare market, performed according to plan with a small growth involumes.

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 ofthe Group's exchange rate effects, are at the same level as the previousquarter last year. Extended Care improved earnings significantly on theback 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 ofJostra and Siemens LSS, have led to an impressive growth in earnings.

Outlook

The Group performed well in the first quarter of the year, interms of both earnings and volumes, which forms a strong base forprogress during the year.

Extended Care is benefiting from a better cost structure, whichwas established during 2003. Demand remains good and several productlaunches in the coming quarter are expected to boost volume growth.

The positive development of Infection Control that started in2003 continues. Structural measures will lead to a continued rise inoperating margins, while improved market coverage will mean good volumegrowth. Of the Group's negative exchange rate effects, estimated ataround SEK 135 million for the year, around SEK 80 million will impacton Infection Control, of which most will occur in Q1 and Q2. Theexpected earnings growth will thus be concentrated in the second half ofthe year.

Medical Systems is also advancing positively. The lower volumegrowth announced for Surgical Workplaces is being compensated by goodcost control and pricing discipline, which means that earnings areexpected to rise. The earnings contribution from the Jostra and Siemensacquisitions are expected to boost Group earnings by around SEK 150million annually.

As with the situation at the start of the year, the earningsoutlook 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

Getinge Q1 report for January-March 2004

Tags