Brief: Arjo Operating Profit For Q2 Estimated To Be Significantly Better Than Expected

Arjo AB (publ)

11/06/2020 06:04

June 11 (Reuters) - Arjo AB (publ)  ARJOb.ST :
    * ARJO'S OPERATING PROFIT FOR THE SECOND QUARTER OF 2020 ESTIMATED TO BE SIGNIFICANTLY
BETTER THAN
EXPECTED
    * SAYS EXPECTS ITS OPERATING PROFIT FOR Q2 OF 2020 TO INCREASE BY MORE THAN 30% COMPARED TO
CORRESPONDING QUARTER IN 2019, WHICH IS SIGNIFICANTLY BETTER THAN CONSENSUS FROM ANALYSTS
    * SAYS NET SALES IN Q2 ARE EXPECTED TO BE IN LINE WITH A STRONG Q2 IN 2019
    * SAYS CONTINUES TO SEE A STRONG DEVELOPMENT IN MEDICAL BEDS, HIGH DEMAND WITHIN RENTAL
OPERATIONS
AND A HEALTHY PERFORMANCE WITHIN DIAGNOSTICS BUSINESS
    * SAYS THIS WHILE GROUP'S RESTRICTED ACCESS TO HOSPITALS AND ELDERLY HOMES IS HOLDING BACK
GROWTH
DURING QUARTER
    * SAYS GROWTH IS FURTHER HELD BACK DUE TO POSTPONED ELECTIVE CARE
    * SAYS PROFITABILITY IS EXPECTED TO INCREASE SIGNIFICANTLY COMPARED TO Q2 IN 2019
    * SAYS EXPECTS AN IMPROVEMENT IN OPERATING PROFIT (EBIT) BEFORE RESTRUCTURING OF MORE THAN
30%
    * SAYS AS AN INCREASINGLY NUMBER OF COUNTRIES ARE LIFTING THEIR RESTRICTIONS, ARJO ESTIMATES
THAT
MARKET SITUATION FOR GROUP'S SEGMENTS WILL GRADUALLY IMPROVE
    * SAYS EXPECTS A GRADUALLY INCREASED GROWTH WHERE ORGANIC NET SALES GROWTH FOR THIRD AND
FOURTH
QUARTERS, RESPECTIVELY, IS EXPECTED TO BE WITHIN 2-4% TARGET INTERVAL
    * SAYS OPERATING EXPENSES ARE EXPECTED TO CONTINUE TO DECLINE AS A PERCENTAGE OF SALES IN
2020

Source text for Eikon:  ID:nWkrbbb7XY 
Further company coverage:  ARJOb.ST 

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