Results for 2007: Sartorius Achieves Targets in Both Divisions
04 March 2008 - 11:09PM
Business Wire
In 2007, the Sartorius Group (FWB:SRT) met its sales revenue and
earnings targets, which were adjusted in October 2007 essentially
because of the weakened dollar exchange rate. Despite the negative
exchange rate impact, the Group further increased its operating
profitability. Again, business with disposables for biotech
applications and the industrial weighing equipment sector were the
key growth drivers for sales and earnings. General Information
about the Annual Financial Statements After already announcing the
preliminary sales revenue figures on February 13, 2008, we are now
publishing the audited results that will be submitted to the
Supervisory Board on March 11, 2008, for approval of the annual
financial statements. To provide a complete and transparent picture
of the financial situation of the Sartorius Group, we report sales
revenue and profit on a pro forma basis as well as profit
additionally adjusted for non-operating and other non-permanent
effects, as already given in our earlier six- and nine-month
reports. The pro forma presentation means that our calculations
include both companies Stedim and Toha Plast, which we acquired in
2007, as of the outset of 2006 and exclude our hydrodynamic
bearings business, sold last year, as well as the profit from the
sale of this business. The great majority of the adjustments made
relate to the Stedim transaction and integration as well as to
wider-ranging reorganization measures taken, especially in the
Biotechnology Division. Amortization relates exclusively to the
assignment of the purchase price to intangible assets acquired as
carried out in accordance with IFRS 3. Group Business Development
For the Sartorius Group, we achieved an adjusted (underlying) EBITA
of 71.1 million euros on a pro forma basis (2006: 67.2 mn euros),
with currency-adjusted sales revenue up 5.9 percent to 622.7
million euros. The corresponding EBITA margin rose to 11.4 percent
from 11.1 percent a year ago and is thus within the target corridor
of 11.0 to 11.5 percent that we had forecasted. If this figure
would have been calculated based on the exchange rates of the
previous years, we would have increased the year-on-year
profitability of the Group by one solid percentage point. Pro forma
underlying EBITDA of the Sartorius Group was 95.1 million euros, up
from 89.5 million euros a year earlier. Pro forma underlying annual
net profit after minority interest and excluding non-cash
amortization was 30.4 million euros; the corresponding earnings per
share amounted to 1.78 euros. Business Development of the
Biotechnology Division The Biotechnology Division achieved
currency-adjusted sales growth of 5.6 percent, which equates to
375.9 million euros. In this context, the growth momentum
originally forecasted was not attained because of the unfavorable
exchange rate development and, in the second half of the year,
weakened demand from individual key biopharmaceutical customers in
North America. Adjusted pro forma underlying EBITA was 49.7 million
euros, up from 46.1 million euros a year ago. The corresponding
EBITA margin rose to 13.2 percent from 12.6 percent in 2006. As a
result, we achieved our target range of 13.0 to 13.5 percent that
was adjusted in October 2007. If this figure had been calculated
based on the exchange rates of the previous years, we would have
increased the year-on-year pro forma underlying EBITA margin by
more than one solid percentage point, especially due to economies
of scale in our disposables business. Business Development of the
Mechatronics Division The Mechatronics Division attained a pro
forma underlying EBITA of 21.3 million euros (2006: 21.1 mn euros),
with currency-adjusted sales revenue up 6.4 percent to 246.8
million euros. The corresponding EBITA margin was at 8.6 percent
(2006: 8.9 percent) and thus reached the target range of 8.5 to 9.0
percent that we had adjusted in October 2007. Above all, the
further improved profitability of our industrial weighing business
would have resulted in a year-on-year increase in our pro forma
underlying EBITA margin by approximately half of a percentage
point, if the previous years� exchange rates had been applied.
Dividends On the basis of the results available, the Executive
Board will submit a proposal to the Supervisory Board at the
meeting on March 11, 2008, to raise dividends to 0.68 euro per
preference share and 0.66 euro per ordinary share (2006: 0.64 euro
prf. and 0.62 euro ord., resp.). Balance Sheet Even after the
Stedim transaction, the Sartorius Group reports very robust key
figures on the balance sheet. Thus, the equity ratio of the
Sartorius Group is at 42.6 percent (previous year: 44.8 percent)
and the ratio of net debt to pro forma underlying EBITDA was 2.0
(previous year: 0.6). Assessment and Outlook CEO and Executive
Board Chairman Dr. Joachim Kreuzburg said that he was satisfied
with the company�s performance: �For the Sartorius Group, 2007 was
an exceptionally intense and successful year. We reached our
targets in most of the business areas of our Group, and continued
to post overall gains in sales revenue and profitability in a
difficult currency environment. Even more important, we have
implemented an extensive number of strategic projects: in
particular, we reorganized our global Group structures, acquired
Stedim and Toha Plast, sold our hydrodynamic bearing business,
initiated reorganization measures in the USA and carried out global
infrastructure projects. By spearheading these projects, we have
strengthened our basis for the long-term positive development of
the Group." For fiscal 2008, we are targeting an increase in sales
revenue by more than 9 percent in constant currencies, relative to
the pro forma sales revenue posted for fiscal 2007. In this
context, we expect that our businesses with disposables and
industrial weighing equipment will generate the strongest growth
momentum. Based on this sales forecast on an average USD/EUR
exchange rate of 1.40, we anticipate that the Group EBITA margin
will rise to about 12 percent. � in millions(unless otherwise
specified) � Group � Biotechnology � Mechatronics � 2007 � 2006 �
Change 2007 � 2006 � Change 2007 � 2006 � Change Sales revenue (pro
forma) 622.7 602.6 3.,3% 375.9 365.5 2.8% 246.8 237.1 4.1% Sales
revenue (actual) 589.0 521.1 13.0% 329.8 271.0 21.7% 259.2 250.0
3.7% Pro forma underlying EBITA 71.1 67.2 5.8% 49.7 46.1 7.8% 21.3
21.1 1.3% EBITA (actual) 59.2 52.1 13.7% 26.0 31.8 -18.3% 33.2 20.2
63.9% Pro forma underlyingnet profit (1)(2) 30.4 - - Net profit
(actual) 30.1 29.0 3.8% Pro forma underlyingearnings per share (2)
in � 1.78 - - Earnings per share (actual) in � 1.77 1.70 3.8% (1)
After minority interest (2) Excluding non-cash amortization
Conference Call and Webcast: Dr. Joachim Kreuzburg, CEO and
Executive Board Chairman of Sartorius, will provide information on
the results to analysts and investors today, March 4, 2008, at 3:00
pm Central European Time (CET) in a telephone conference. You may
dial into the telephone conference starting at 2:45 pm CET at the
following numbers: Germany: +49 (0)69 5007 1316; France: +33 (0)1
70 99 42 99; UK: +44 (0)20 7806 1967; USA: +1 718 354 1388. The
dial-in code is 6360347; you can access the webcast at
www.sartorius.com or
http://www.livemeeting.com/cc/premconfeurope/join?id=6360347&role
=attend&pw=pw3216 Current image files: Company headquarters in
Goettingen, Germany:
www.sartorius.com/media/content/press/support/Sartorius_Plant.jpg
Sartorius Stedim Biotech:
www.sartorius-stedim.com/media/content/press/support/
Fluid_Management.jpg Sartorius Mechatronics:
www.sartorius.com/media/content/press/support/Moisture.jpg Upcoming
financial dates: March 13, 2008 � Annual press confernece in
Goettingen, Germany April 23, 2008 Annual Shareholders' Meeting in
Goettingen, Germany A profile of Sartorius The Sartorius Group is
an internationally leading laboratory and process technology
provider covering the segments of biotechnology and mechatronics.
In 2006, the technology group earned sales revenue of 622.7 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 fermentation, filtration,
purification, fluid management 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. Sartorius Corporate Administration GmbH, 37070
Goettingen, Germany http://www.sartorius.com (Due to their lengths,
some of the above URLs may need to be copied/pasted into your
Internet browser's address field. Remove any extra space if one
exists.)
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