Interim report January - June 2000
INTERIM REPORT JANUARY - JUNE 2000 * Orders received totalled SEK 2,518.7 million (2,447.5) * Net sales totalled SEK 2,419.5 million (2,381.0) * The operating profit was SEK 301.3 million (341.7) * The profit before tax was SEK 260.7 million (316.7) * The acquisitions of Techno-Médic in Canada and Lenken in Ireland underpin Getinge's world leading position Comments on the quarter and outlook The Infection Control business area continues to progress well in North America and in the developing markets, though profitability is not at a satisfactory level. The markets for life science products continue to perform well, while customers within the pharmaceutical industry are requesting fewer products, a situation that experience tells us affects the market during a period of major mergers between pharmaceutical companies. The business area's results are somewhat higher than last year's. The Geriatrics business area has a shorter business cycle and demand continues to be difficult to predict. The lower demand from the health care market in the UK, which was felt in Q1, has remained during Q2. As the business area's gross margins are generally high, the business is volume-sensitive. The pressure sore sector where the gross margins are highest, is the area mainly hit and will not be able to meet expectations. The business area has reason to believe that there is light at the end of the tunnel. The uncertainty that characterised geriatric care activities in the US over the past 18 months as changes to the Medicare system took effect, is now diminishing. Even if it is difficult to see the effects of the promised state aid to the geriatric care sector, customers in this sector have adapted themselves to the new rules. In comparison with last year, 1999's figures for the first six months included a significant one- off order from Beverly Enterprises of the US of around SEK 80 million. This order was concluded during Q2 1999 and will not affect comparisons in Q3 and Q4. We still expect improved results in the Infection Control business area this year. The Geriatrics business area has had a weak introduction to the year on the US market, and continued flat demand for pressure sore products in the UK will mean that the business area will not meet last year's profit levels. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/10/20000810BIT00590/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/10/20000810BIT00590/bit0002.pdf The full report