STOCKHOLM, Sweden, April 23, 2003 (PRIMEZONE) -- Getinge (Other OTC:GNGBF)
- Orders received totalled SEK 2,165.4 million (2,167.6) - Invoicing totalled SEK 2,003.0 million (1,909.2) - The profit before tax was up 19% to SEK 174.0 million (145.8) - Continued good profit trend at Infection Control - Acquisition of Copharm by Surgical Systems - Strong profit growth at Surgical Systems - Cash flow continues to be good - Profit outlook continues to be positive for 2003
The quarter
The Group's orders received rose organically by 4.2%. Compared to the same period last year, orders received climbed by 7.5%. The increase in orders received by Infection Control was excellent. The Surgical Systems business area's orders received fell somewhat compared with the strong position in 2002. Extended Care started the year with a modest gain in orders received.
Despite a good increase in invoiced sales in Q1, the Group's book-to- bill remains positive and the Group's order book continues to be very sound.
The profit before tax for the period was up by 19%. Adjusted for activated R&D costs, in the amount of SEK 6.8 million, the increase was 15%. Strong volume increases and synergy effects from the Heraeus acquisition have led to a significant profit improvement by Surgical Systems. Infection Control continued its positive profit trend and profitability has been boosted on the back of structural measures taken in 2002. Extended Care business area's profits fell during the quarter, explained by low invoiced sales and the subsequent poor utilisation of manufacturing resources.
A continued strong cash flow, coupled with lower interest rates has meant improved net financial items.
Outlook
Extended Care started the year sluggishly but expects the rest of the year's performance to improve considerably, although profits for the business area are not expected to reach last year's level. Growth in Surgical Systems has been above expectation for the start of the year. Good volume trends, coupled with solid competitive strength via the restructuring scheme, means that developments are expected to remain very robust.
Infection Control is developing according to plan and the effect of measures taken in production structures and the North American business is contributing to a very good profit trend.
The lacklustre performance by Extended Care is compensated by a better profit outlook for Surgical Systems.
For the whole group of companies, the growth of profit is expected to increase this year in comparison with 2002.
Next report
The next report from the Getinge Group (Q2 2003) will be published on 14 July 2003.
A telephone conference will be held today at 2 p.m. Swedish time. To take part please ring +44 (0)20 7162 0181, codeword: Getinge
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The full report
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