Getinge (GETI) Q1 2009 earnings summary

Executive summary

• Q1 orders received rose 17.2% to SEK 5,467M and net sales rose 25.5% to SEK 5,153M; organic sales growth was 0.7%.

• Profit before tax increased 46.0% to SEK 530M, including a SEK 228M currency hedge gain; net profit rose 46.9% to SEK 382M and EPS to SEK 1.60.

• Datascope was consolidated from February; management lowered growth ambitions amid recessionary demand but maintained a favourable full-year profit outlook.

Financial highlights

• Gross profit was SEK 2,531M, up 22.4%; gross margin was 49.1%, down 1.2 percentage points YoY.

• Operating profit was SEK 484M, down 11.2%, and operating margin was 9.4%, versus 13.3% YoY; restructuring and integration costs were SEK 37M.

• EBITA before restructuring and integration costs was SEK 652M, up 0.5%; adjusted EBITA margin was 12.7%, versus 15.8% YoY.

• Operating cash flow excluding restructuring costs increased 12% to SEK 1,040M; after restructuring cash costs it was SEK 1,026M.

Outlook and guidance

• FY organic sales growth expected at 2–3%; Datascope, excluded from organic growth, expected to grow faster.

• FY profit before tax expected to rise ~15% at prevailing exchange rates, including ~SEK 200M in Datascope acquisition restructuring costs; excluding Datascope integration costs, expected growth is ~25%.

• The outlook anticipated improving orders in Europe and Latin America in the coming quarter, while demand in certain emerging markets, including Russia, was expected to weaken during the year.