Today Sartorius (FWB:SRT), a leading international laboratory
and process technology provider, published its nine-month results
for 2010. Both Group divisions posted strong gains in order intake,
reporting a solid order backlog in light of the last quarter of
this year. Sales revenue also showed strong development that was
reflected by the overproportionate increase in operating earnings,
which were around a third higher than a year ago. On the basis of
these positive results, management reaffirms its 2010 growth
forecast for the Group and has slightly raised its profit guidance
for the full year.
Business Development of Both Group Divisions
Sartorius Stedim Biotech
The Biotechnology Division, which operates under the name of
Sartorius Stedim Biotech, increased its order intake in the first
nine months by 9.1% (constant currencies: +6.4%) to 330.9 million
euros, up from 303.4 million euros a year earlier. Sales revenue
rose in the same period by 7.0% (constant currencies: +4.6%) to
318.8 million euros from 298.0 million euros a year ago. As
expected, orders for bioreactors and other biotechnological
production systems, defined as equipment business, from the
Asia/Pacific region in particular contributed to the positive
development of order intake, where currently the pharmaceutical
industry is strongly investing in setting up new plant equipment.
Also, business with single-use products for biopharmaceutical
manufacturing again proved to be a growth driver; the highest
growth rates were generated by this segment in North America and
Asia/Pacific. In Europe, growth turned out to be more moderate.
However, development in this region is impacted by the extra
year-earlier revenue that the division had earned in connection
with the swine flu in 2009.
The Biotechnology Division increased its operating earnings
(earnings before interest, taxes and amortization and adjusted for
extraordinary expenses = underlying EBITA) from 46.3 million euros
a year ago to 50.1 million euros. Its respective margin improved
from 15.5% to 15.7%.
Sartorius Mechatronics
In the first nine months of 2010, the Mechatronics Division
received orders valued at 177.4 million euros, up from 151.4
million euros a year earlier. Thus, the division considerably
boosted its order intake by 17.2% (constant currencies: +14.1%)
over its weak year-earlier figure that was due to the crisis. The
Mechatronics Division’s sales revenue also recovered significantly
by 11.4%, rising from 146.8 million euros to 163.6 million euros
(constant currencies: +8.5%). Both its laboratory products and its
industrial weighing and control technology products contributed to
this positive development. In addition, substantial growth momentum
was generated by all the division’s business regions; the highest
rates of increase were reported in the Asia/Pacific region.
At 8.8 million euros, the Mechatronics Division achieved
significantly positive operating earnings (underlying EBITA) during
the first nine months of the year following an operating loss of
2.4 million in the year-earlier period. The division’s respective
margin improved from -1.6% to 5.4%.
“It is encouraging that business is continuing to recover in our
Mechatronics Division. In addition to the substantially improved
economic environment, our extensive restructuring program
decisively contributed to the positive earnings development
reported by this division. We are continuing to focus on executing
the strategic realignment of this division and are now setting the
course for future sales and profit growth,” commented CEO
Dr. Joachim Kreuzburg.
Business Development of the Sartorius Group
On the whole, the Sartorius Group received orders valued at
508.3 million euros in the first nine months, up from 454.8 million
euros a year earlier. This equates to a gain of 11.8% (constant
currencies: +9.0%). Consolidated nine-month sales revenue rose 8.5%
(constant currencies: +5.9%) to 482.3 million euros, up from 444.7
million euros a year ago. From January to September, the Group’s
operating earnings (underlying EBITA) surged 34.1% from 43.9
million euros to 58.9 million euros. Accordingly, its respective
margin improved from 9.9% a year earlier to 12.2%. The Group’s
relevant net profit totals 26.4 million euros, up from 13.9 million
euros a year ago. This profit is calculated by excluding
extraordinary expenses (3.3 million euros; previous year: 24.7
million euros) and non-cash amortization (5.3 million euros;
previous year: 5.3 million euros). The corresponding earnings per
share amount to 1.55 euros, up from 0.81 euro in the year
before.
Moreover, the Group achieved a significantly positive cash flow
from operating activities at 60.8 million euros. The even higher
year-earlier figure of 104.8 million euros was impacted by positive
one-time items, in particular by around 36 million euros from the
international factoring program initially implemented in the
previous period.
Outlook for the Sartorius Group
Based on the company’s nine-month results, management reaffirms
its growth forecast for the full year of 2010 and has slightly
raised its profit guidance. Accordingly, the company expects that
in constant currencies, sales revenue at Group level will be
slightly above 5%. Concerning profitability, management now expects
that the operating EBITA margin will improve by around 2.5
percentage points, after having anticipated so far that this margin
would improve by one to two percentage points. Furthermore,
management’s forecast of achieving a significantly positive
operating cash flow remains unchanged.
"With regard to all key financials, 2010 will be a successful
year for the Sartorius Group in all probability. Working from this
basis, we will fully concentrate on achieving further growth
in sales revenue and profit. In this effort, new products and
operational excellence will play an important role, but so will
opening up new strategic business fields," said Dr. Kreuzburg. "For
this reason, we are also exploring options for further developing
our Group organization with respect to its efficiency and
flexibility, such as moving in the direction of a holding
structure."
Key Figures at a Glance
€ in millions(unless
otherwise
specified)
Sartorius Group Biotechnology Division
Mechatronics Division 9 9
Change
9 9 Change
9 9 Change
months months
in %
months months in %
months months
in %
2010 2009
2010 2009
2010 2009 Order intake
508.3 454.8 11.8
330.9
303.4 9.1
177.4 151.4 17.2 Sales
revenue
482.3 444.7 8.5
318.8 298.0 7.0
163.6
146.8 11.4 Operating earnings
(underlying EBITA)1)
58.9 43.9 34.1
50.1
46.3 8.1
8.8 -2.4
EBITA margin)
12.2% 9.9%
15.7% 15.5%
5.4%
-1.6% Extraordinary expenses
3.3
24.7
Net profit)2)
26.4
13.9 90.8
Earnings per share1)2) in
€
1.55 0.81 90.8
1) Adjusted for extraordinary items
2) Excluding non-cash expenses for
amortization and, in 2009, additionally excluding interest for
share price warrants
Current Image Files:
Dr. Joachim Kreuzburg, Sartorius CEO and Executive Board
Chairman of Sartorius:
http://www.sartorius.com/media/content/press/support/Dr_Kreuzburg_4.jpg
Biotechnology Division/Sartorius Stedim Biotech:
http://www.sartorius.com/media/content/press/support/SSB_Integrated_Solutions.jpg
Mechatronics Division:
http://www.sartorius.com/media/content/press/support/Sartorius_Kontrolltechnik.jpg
Conference Call and Webcast:
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of
Sartorius, will discuss the nine-month figures with analysts and
investors on Friday, October 22, 2010, at 2:00 p.m. Central
European Time (CET), in a webcast teleconference. You may dial into
the teleconference starting at 1:45 p.m. CET at the following
numbers:
Germany: +49 (0)69 2222 2245France: +33 (0)1 70 99 42 66UK: +44
(0)20 7138 0825USA: +1 212 444 0481The dial-in code is as follows:
4240400; to view the webcast, log onto: www.sartorius.com
Upcoming Financial Date:
February 2011 Publication of the preliminary business figures
for 2010
This press release contains statements about the future
development of the Sartorius Group. The content of these statements
cannot be guaranteed as they are based on assumptions and estimates
that harbor certain risks and uncertainties.
This is a translation of the original German-language press
release. Sartorius shall not assume any liability for the
correctness of this translation. The original German press release
is the legally binding version. Furthermore, Sartorius reserves the
right not to be responsible for the topicality, correctness,
completeness or quality of the information provided. Liability
claims regarding damage caused by the use of any information
provided, including any kind of information which is incomplete or
incorrect, will therefore be rejected.
A Profile of Sartorius
The Sartorius Group is a leading international laboratory and
process technology provider covering the segments of biotechnology
and mechatronics. In 2009, the technology group earned sales
revenue of 602.1 million euros. Founded in 1870, the
Goettingen-based company currently employs approximately 4,350
persons. The major areas of activity in its biotechnology segment
focus on filtration, fluid management, fermentation, purification
and laboratory applications. In the mechatronics segment, the
company primarily manufactures equipment and systems featuring
weighing, measurement and automation technology for laboratory and
industrial applications. Key Sartorius customers are from the
pharmaceutical, chemical and food and beverage industries and from
numerous research and educational institutes of the public sector.
Sartorius has its own production facilities in Europe, Asia and
America as well as sales subsidiaries and local commercial agencies
in more than 110 countries.
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