Announcement Össur hf. No. 20/2010
Reykjavik, 25 October 2010
GOOD PERFORMANCE
Sales - Overall sales growth was good, 7% measured in local currency and all
segments contributed to growth. Total sales amounted to USD 87 million compared
to USD 84 million in the third quarter of 2009. Sales of bracing and supports
were strong, growing 12% measured in local currency. Sales of prosthetics were
slow in the quarter, growing 3% measured in local currency.
Profitability - EBITDA amounted to USD 19 million or 22% of sales and gross
profit amounted to USD 54 million or 62% of sales. Overall margins remain
stable. Net profit amounted to USD 4 million compared to USD 5 million for the
same period in 2009. Net profit was significantly impacted by negative exchange
rate adjustments related to financial items.
Jon Sigurdsson, President & CEO, comments:
"Performance in the bracing and supports segment continues to be good,
especially in the US. The product pipeline remains strong and we are pleased to
see how the new bracing and supports products are contributing to growth.
Amongst new products launched in the quarter is the PROPRIO FOOT which is the
second product in Össur's bionic platform. The Bionic platform has created
excitement in the market and we are committed to further development within this
field."
Highlights of the quarter:
* PROPRIO Launch - PROPRIO FOOT was launched in the third quarter. PROPRIO
FOOT is the second product in the Bionic Platform to be launched. Össur is
paving the road for Proprio as this is the first product of its kind. Sales
generated from the foot in the third and fourth quarter of 2010 are expected
to have immaterial effect on the Company's total sales for 2010.
* Sales of bracing and supports - The bracing and supports segment is growing
above the market growth rate. The growth trend in the US is positive and
confirms that increased investment in sales coverage in the US is returning.
New products in bracing and supports, such as the Miami Lumbar and Rebound
Walker, have been well received and are contributing to growth.
Guidance - Management estimates LCY organic sales growth for 2010 to be within
the original guided range of 4-6%. EBITDA LCY organic growth is now estimated
to be in the range of 5-7% for the year.
Conference call tomorrow 26 October at 12:00 CET/ 10:00 GMT/ 6:00 EST
Tuesday 26 October 2010 Jon Sigurdsson, President and CEO, and Hjörleifur
Palsson, CFO, will host a conference call for investors, analysts and
shareholders presenting and discussing the results of the third quarter of
2010. The conference call will be conducted in English and can be heard on
Össur's website: www.ossur.com
To participate in the meeting please call one of the following telephone
numbers:
Europe: +44 (0)20 3043 2436 or +46 (0)8 505 598 53
The United States: +1 866 458 40 87
Iceland: 800 8660
Further information
Jon Sigurdsson, President & CEO Tel: +354 515 1300
Hjorleifur Palsson, CFO Tel: +354 515 1300
Sigurborg Arnarsdottir, IR Manager Tel: +354 664-1044
NOTE: This page only includes the highlights of the quarter. For the full press
release please visit www.ossur.com/investors
[HUG#1455123]
