Sweden's Arjo expects operating profit to rise more than 30% in Q2

Arjo AB (publ)

11/06/2020 06:34

STOCKHOLM, June 11 (Reuters) - Swedish medical equipment
supplier Arjo  ARJOb.ST  expects second-quarter operating
earnings to rise more than 30% year-on-year, significantly
better than market forecasts, it said in a statement on
Thursday.
    Arjo said the expected profit rise was driven by "solid
profitability within rental operations, good cost control
throughout the value chain and some positive currency effects".
    The company, which makes products such as medical beds and
diagnostics gear, said quarterly sales were expected to be flat
compared with the second quarter 2019, but strengthen in the
second half of the year as pandemic restrictions in many
countries are eased.
    "In light of this, Arjo expects a gradually increased growth
where the organic net sales growth for the third and fourth
quarters, respectively, is expected to be within the 2-4% target
interval".
    Arjo said it was currently seeing strong sales of medical
beds, and good demand within its rental operations as well as in
its diagnostics business.
    The company reports second-quarter results on July 17. 

 (Reporting by Johannes Hellstrom)
 ((johannes.hellstrom@thomsonreuters.com; +46850242388; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))