Successful First Half of 2011: Sartorius Raises Full-year Guidance
GOETTINGEN, Germany, July 25, 2011 /PRNewswire/ --
- Consolidated Sales Revenue Rises 12.2% to 353.7 Million Euros
- Operating Profit Surges 40.7% to 51.1 Million Euros; the Corresponding Margin Improves to 14.4%
- Management Raises Full-Year Guidance for Sales Revenue and Profit
Sartorius, a leading international laboratory and process equipment provider, successfully closed the first half of 2011, with double-digit growth rates in sales revenue and earnings. "In both Group divisions and in all business regions, we have grown dynamically and profitably," commented CEO Dr. Joachim Kreuzburg on the company's first-half results. "Once again, our Asian business has been the biggest growth driver. We are especially happy about the numbers coming from this region." Looking ahead to the second half of the year, Dr. Kreuzburg expects the outstanding growth rates in the more cyclical Mechatronics Division to gradually return to normal. By contrast, for the Biotechnology Division that generates nearly two-thirds of consolidated revenue, Dr. Kreuzburg projects that growth will continue to remain dynamic.
Based on the company's successful first half, management raised its 2011 full-year guidance for sales revenue and profit. Consolidated sales revenue is thus expected to grow on the basis of constant currencies from 6.4% in 2010 to between 8% and 10% (former guidance: 6% to 8%). The operating margin is forecasted to increase from 13.0% in 2010 to between 14.5% and 15.5% (former guidance: around 14%).
Development of Order Intake and Sales Revenue
In the first half of 2011, Sartorius increased its order intake over the year-earlier period by 13.6% (in constant currencies: +14.6%) to 382.3 million euros. In the same period, sales revenue rose 12.2% (in constant currencies: +13.1%) to 353.7 million euros.
Strong growth was fueled by both Group divisions: The larger Biotechnology Division increased its order volume by 16.2% (in constant currencies: +17.4%) to 257.2 million euros and its sales revenue by 9.7% (in constant currencies: +10.8%) to 229.4 million euros. Especially in demand were single-use products that customers in the pharmaceutical sector use in their production processes, such as special filters and bags, for instance. The Mechatronics Division, which generates around a third of consolidated revenue, also experienced dynamic development. By the end of the first half, its order intake at 125.1 million euros was 8.7% higher than the year-earlier figure (in constant currencies: +9.2%); sales revenue even climbed 17.2% (in constant currencies: +17.6%) to 124.3 million euros. Both of the division's businesses with laboratory instruments and industrial weighing and control equipment, respectively, contributed to this positive development.
The regional pattern shows that Sartorius posted the highest gains in Asia/Pacific, as it had in the previous quarters. There, sales revenue jumped by nearly one-third (+28.7%) to 80.1 million euros as a result and was thus the highest growth region for both Group divisions. For the Biotechnology Division, revenue in Asia/Pacific was up 34.1%; the Mechatronics Division expanded sales there by 22.8%. In Europe as well, business developed dynamically, with sales up 11.9%. The Biotechnology Division contributed 8.8% and the Mechatronics Division 18.2% to this figure. In North America, growth for the six-month period was at 3% (Biotechnology Division: 2.7%; Mechatronics Division: 3.9%; all regional growth rates given in constant currencies).
"Both divisions showed outstanding development in the first half," said Dr. Kreuzburg. "We see that the Biotechnology Division will continue to remain on a stable growth track. For the Mechatronics Division, there is indication that its growth rates will return to normal levels in the second half, once pent-up demand from the rebound has abated. From a regional view, we expect North America to contribute higher growth in the second half than it did in the first half."
Earnings Development
The gain in profit was even stronger than in sales revenue: Operating earnings* rose overproportionately in the first half and, at 51.1 million euros, were 40.7% higher than the year-earlier figure. The respective operating EBITA margin improved from 11.5% to 14.4%.
The Biotechnology Division contributed to this increase in earnings, reporting 38.6 million euros, which were up 22.8%. Its margin rose from 15.0% to 16.8%. Earnings for the Mechatronics Division climbed substantially from 4.8 million euros to 12.4 million euros, which represents a gain of 157.5%. Accordingly, the division's EBITA margin also improved significantly, from 4.5% a year ago to 10.0%. This considerable jump in earnings was due to the optimized cost structures of the Mechatronics Division, besides its increase in sales revenue.
Relevant net profit for the period was 24.0 million euros, up from 15.9 million euros a year ago. This profit is calculated by excluding extraordinary items and eliminating non-cash amortization of 3.8 million euros (H1 2010: 3.5 million euros). The corresponding earnings per share were at 1.41 euros, up from 0.93 euro a year earlier.
"In the first half, we again overproportionately increased our earnings. What is especially encouraging is the strong gain in profitability reported by the Mechatronics Division. This development underscores the good market positioning and successful business model of both divisions. Based on our excellent first-half results, we have raised our forecasts for sales revenue and earnings for both divisions and, therefore, for the entire Group," commented Dr. Kreuzburg.
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* Earnings before interest, taxes and amortization and adjusted for extraordinary expenses = underlying EBITA
Outlook
According to its guidance now raised, Sartorius expects 2011 full-year sales for both divisions, and thus for the entire Group, to grow 8% to 10% in constant currencies (former guidance: 6% to 8%). At the same time, it projects that the increase in profitability will be stronger. The operating EBITA margin at Group level is forecasted to rise to 14.5% to 15.5% (former guidance: around 14%). The Biotechnology Division is expected to contribute an operating margin of approximately 17% to 18% (former guidance: around 17%) and the Mechatronics Division a margin of around 10% to 11% (former guidance: about 8%) to this result. Furthermore, management continues to anticipate that operating cash flow will be significantly positive.
Key Figures at a Glance
EUR in millions
(unless
otherwise Biotechnology Mechatronics
specified) Sartorius Group Division Division
1st 1st 1st 1st 1st 1st
half half Change half half Change half half Change
of of of of of of
2011 2010 in % 2011 2010 in % 2011 2010 in %
Order intake 382.3 336.4 13.6 257.2 221.4 16.2 125.1 115.1 8.7
Sales revenue 353.7 315.2 12.2 229.4 209.1 9.7 124.3 106.1 17.2
EBITA 1) 51.1 36.3 40.7 38.6 31.5 22.8 12.4 4.8 157.5
EBITA margin 1) 14.4% 11.5% 16.8% 15.0% 10.0% 4.5%
Extraordinary
expenses/income 6.7 1.9 2.9 0.5 3.7 1.4
Net profit 1)2) 24.0 15.9 50.6
Earnings per
share
in EUR 1)2) 1.41 0.93 50.6
1) Adjusted for extraordinary items (underlying)
2) Excluding non-cash expenses for amortization
Current Image Files:
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG:
http://www.sartorius.com/media/content/press/support/Kreuzburg_2011.jpg
Sartorius | Biotechnology Division (Sartorius Stedim Biotech):
http://www.sartorius.com/media/content/press/support/Sartoflow_2011.jpg
Sartorius | Mechatronics Division:
http://www.sartorius.com/media/content/press/support/Laboratory_2011.jpg
Conference Call and Webcast:
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the first-half figures with analysts and investors today, July 25, 2011, at 4:00 p.m. Central European Time (CET), in a webcast teleconference. You may dial into the teleconference starting at 3:45 p.m. CET at the following numbers:
Germany: +49(0)69-2222-2244
France: +33(0)1-70-99-42-73
U.K.: +44(0)20-7136-2052
USA: +1-212-444-0481
The dial-in code is as follows: 9817884
To view the webcast and presentation, log onto: http://www.sartorius.com
Upcoming Financial Date:
October 2011 Publication of the nine-month figures (January to September 2011)
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 2010, the technology group earned sales revenue of 659.3 million euros. Founded in 1870, the Goettingen-based company currently employs approximately 4,500 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 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.
__________________________________________________________________________________________
Contact: Petra Kirchhoff, Vice President of Group Corporate Communications
Sartorius Corporate Administration GmbH; 37070 Goettingen, Germany
Phone: +49(0)551-308-1686; fax: +49(0)551-308-3572
E-mail: petra.kirchhoff@sartorius.com; http://www.sartorius.com
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