Getinge: Report January - September 2002


STOCKHOLM, Sweden, Oct. 17, 2002 (PRIMEZONE) -- Getinge:

- Profit before tax rose by 30% to 146.0 SEK million (112.3) in Q3, including WSP costs of SEK 25 million

- Cash flow continued to be strong

- Orders received stood at SEK 6 521.8 million (6,058.2)

- Net sales amounted to SEK 6 041.4 million (5,691.7)

- The profit before tax was SEK 470.6 million (425.8)

- Extensive restructuring of Heraeus Med Tec has started

The third quarter

Orders received climbed organically over the quarter by 4.1%. Demand for Surgical Systems improved significantly in comparison to the year's first two quarters. The increase rate of orders received by Infection Control decreased somewhat and should be seen in the light of a very strong volume growth over the last three quarters. Extended Care saw organic growth of 5.2%. In summary the Group's orders received rose organically by 5.6% during the first three quarters and the order book continued to be at a very good level.

The profit before tax rose by 30% compared with the same period last year. Results for the quarter have been charged with one-off costs of SEK 25 million for restructuring Infection Control's manufacturing units in France and the U.S. Excluding the restructuring costs, the consolidated profit before tax soared 52%. All the business areas reported improvements in their operating profits and operating margins. Surgical Systems reported an exceptional increase.

The Group's cash flow development continues to be positive.

Outlook

Good demand for the Group's products and services is expected to continue in all business areas and on all the most important markets.

The Infection Control business area, which has been, and is being significantly reorganized, concerning its production structure and marketing organization, strengthened its operating margin during the quarter if the one-off costs charged to the quarter's results are ignored. The outlook for continued, stable, operating margins is very good when coupled with the effects the restructuring measures will have. Surgical Systems continued to bolster its positions and competitive strength. The acquisition of Heraeus Med Tec, where the restructuring scheme was started in Q3, will significantly contribute to a profit improvement over the coming two years. Simultaneously the potential to continue the volume growth in general is good, not least in the US. Extended Care continued to strengthen its operating profit on a stable, expanding market and by continuing to concentrate on market penetration, geographic expansion and product development, focus more on organic growth.

To sum up: the consolidated profit outlook for both the current year and next, continues to be good.

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