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GETI B - Getinge AB News Story

SEK191.5 0.0  0.0%

Last Trade - 28/09/20

Sector
Healthcare
Size
Large Cap
Market Cap £4.50bn
Enterprise Value £5.18bn
Revenue £2.39bn
Position in Universe 129th / 1785

UPDATE 1-Getinge profits jump as pandemic fuels scramble for ventilators

Thu 16th July, 2020 8:08am
* Q2 Adjusted EBITA SEK 1.22 bln vs year-ago 591 mln
    * Like-for-like order bookings surge 17.5% yr/yr
    * Company issues no sales outlook amid pandemic uncertainty
    * Shares rise 4.5% 

 (Adds detail, background)
    STOCKHOLM, July 16 (Reuters) - Swedish medical equipment
maker Getinge  GETIb.ST  reported on Thursday a jump in core
profit and order intake in the second quarter as demand for
ventilators and other life support equipment surged due to the
still raging pandemic. 
    Getinge, one of the world's biggest makers of medical
ventilators, is increasing ventilator production capacity as it
expects its high delivery rate to continue into next year before
gradually returning to previous levels.  urn:newsml:reuters.com:*:nL5N2CA1NC
    Adjusted operating profit before amortisation grew to 1.22
billion crowns ($134.3 million) from a year-earlier 591 million,
with the margin nearly doubling to 17.5% from 9.4% while order
intake jumped 17.5% on a like-for-like basis. 
    "The high volumes, combined with the productivity measures
in recent years, resulted in increased profitability,
strengthened free cash flow and lower net debt," Chief Executive
Mattias Perjos said in a statement.
    Handelsbanken said in a research note it expected Getinge
shares to rise at least 5% on the back of higher-than-expected
earnings and order intake in the quarter. The stock was up 4.5%
in the first few minutes of trading in Stockholm. 
    The maker of products for surgery, intensive care, infection
control and sterilisation still held off on providing sales
guidance for the year, citing the uncertainty caused by the
COVID-19 pandemic.
    While the spread of the disease has seen demand for products
such as the ventilators rocket, hospitals have scaled back
purchases in other less urgent categories and Getinge said it
expected a slow recovery for these capital goods.
    Rival Draegerwerk on Tuesday reported preliminary results
and said full-year sales and profit would rise considerably this
year due to demand resulting from the pandemic, sending its
shares up.  urn:newsml:reuters.com:*:nL5N2EL5SC 
    
   ($1 = 9.0869 Swedish crowns)

 (Reporting by Anna Ringstrom; editing by Niklas Pollard)
 ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters
Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))
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