Today Sartorius, a leading international process and laboratory
technology provider, released its preliminary unaudited figures for
fiscal 2009. In the reporting period, business in both Group
divisions showed substantially divergent trajectories. The
Biotechnology Division, which contributes a good two thirds to
consolidated sales, reported dynamic growth and attained a new
level in operating profit. By contrast, the Mechatronics Division
posted sales and earnings development that was severely impacted by
the global downturn. Nevertheless, this division achieved a
turnaround during the course of the year and closed 2009 with
positive operating earnings. For the Group, operating profit was
higher than a year ago, despite the difficult economic climate.
Cash flows from operating activities rose by more than two and a
half times compared with the year-earlier figure. For 2010,
management expects sales revenue and profit to increase in both
Divisions.
Business Development of the Divisions
Sartorius Stedim Biotech
The Biotechnology Division, which operates under the name of
Sartorius Stedim Biotech (SSB), increased its sales revenue in the
reporting period by 9.4% from 366.0 million euros to 400.4 million
euros (currency-adjusted: 8.3%). Order intake also considerably
jumped 11.5% from 367.1 million euros to 409.2 million euros
(currency-adjusted: 10.3%). Again, double-digit growth rates
generated by the company’s business with single-use products for
the biopharmaceutical industry substantially fueled this growth. In
the reporting year, this business gained added momentum from
vaccine manufacturers who significantly drove up demand for
single-use bags and filters used in the production of the vaccine
against the H1N1 virus. This effect contributed around two
percentage points to growth. As expected, business with large-scale
bioreactor systems, by contrast, slightly declined, but saw
positive momentum as of the second half of the year.
Regarding regional distribution of sales revenue, all business
regions with their significantly positive growth rates contributed
to the successful development of sales. North America achieved the
highest growth, where sales were up 18.1% (currency-adjusted:
11.6%), followed by Asia|Pacific, with sales up 7.8%
(currency-adjusted: 4.7%), and Europe, up 5.1% (currency-adjusted:
6.5%).
This strong sales development is also reflected by the
Biotechnology Division’s earnings. Its earnings before interest,
taxes and amortization, which were adjusted for special items
(underlying EBITA or operating earnings), showed substantial
overproportionate improvement, surging 51.5% to 60.2 million euros.
In the year-earlier period, underlying earnings were at 39.7
million euros. The corresponding EBITA margin rose from 10.9% to
15.0% and thus marks a new level. Besides the uplift in sales
volume, the division’s enhanced product mix and stringent cost
management were decisive for this boost in profitability.
Sartorius Mechatronics
Amid a climate of pronounced reluctance to invest shared by
nearly all customer sectors, the Mechatronics Division reported a
steep decline in demand for its products in the reporting year.
This impacted its business with industrial weighing and control
equipment slightly more than its business with laboratory
instruments. By contrast, service business proved to be robust.
Compared with a year ago, the division’s sales revenue dropped
17.9% from 245.6 million euros to 201.7 million euros
(currency-adjusted: -19.3%). At 205.9 million euros, order intake
also was down 15.2% from 242.7 million euros a year earlier
(currency-adjusted: -16.6%). Following an especially steep plunge
in first-half demand, business indicated initial signs of recovery
at year-end. The regional pattern shows that the division’s decline
in revenue was somewhat less pronounced in Asia|Pacific at a minus
of 8.2% (currency-adjusted: -12.7%) than in the North American
regions (-14.4%; currency-adjusted: -19.1%) and Europe (-22.4%;
currency-adjusted -21.7%).
Despite the drop in sales, the Mechatronics Division posted
slightly positive operating earnings of 0.7 million euros (previous
year: 17.1 million euros). This increase was due to an extensive
restructuring program, which was implemented in the reporting year
to adapt the division’s structures to the changed market conditions
and which reduced its annual cost base by a good 30 million euros.
The division’s underlying EBITA margin was 0.4% compared with 7.0%
for the year-earlier period.
Business Development of the Sartorius Group
At Group level, the excellent development of the Biotechnology
Division's business compensated for the recession-induced losses in
the Mechatronics Division for the most part. Consolidated sales
revenue in 2009 was 602.1 million euros compared with 611.6 million
euros a year ago, and therefore eased only slightly by 1.6%
(currency-adjusted: -2.7%) relative to the previous reporting
period. At 615.1 million euros, order intake was slightly above the
year-earlier figure of 609.8 million euros (0.9%;
currency-adjusted: -0.4%).
On account of the Biotechnology Division’s significant rise in
profitability, consolidated operating earnings even rose 7.2% from
56.8 million euros to 60.9 million euros. The corresponding
earnings margin climbed from 9.3% to 10.1%. Extraordinary expenses,
which are predominantly comprised of provisions for the
restructuring program in the Mechatronics Division, totaled 30.0
million euros. Unadjusted consolidated EBITA was 30.9 million
euros (previous year: 56.8 million euros).
The Group’s relevant net profit – underlying consolidated net
profit after minority interest without the two non-cash items of
amortization and interest for share price warrants – was also
slightly up from 18.2 million euros a year ago, at 20.8
million euros; this equates to earnings per share of 1.22 euros, up
from 1.07 euros in the previous year. In particular, due to the
significant restructuring charges in the Mechatronics Division the
unadjusted consolidated net profit after minority interest amounts
to -7.3 million euros (12.4 million euros).
Moreover, in the reporting year Sartorius posted a significant
increase in operating cash flow. Because of strong operating
profit, stringent management of working capital and the factoring
program implemented in middle of the reporting year, operating cash
flow surged from 53.0 million euros to 143.4 million euros.
Outlook
For the Biotechnology Division, management expects to achieve
sales growth in the upper single-digit range in 2010. This increase
is forecasted to comprise strong growth for single-use products and
moderate growth for its equipment business. As additional business
with the vaccine industry is not anticipated and equipment business
is likely to contribute a relatively high percentage to sales
growth, the division’s operating EBITA margin expected to rise
rather slightly.
For the Mechatronics Division, which is more strongly dependent
upon business cycles, management assumes that despite the
persistent uncertainty about economic development, there will be a
slight upturn. Against this backdrop, currency-adjusted sales
growth is expected in the lower single-digit percentage range.
Given the division’s significantly reduced cost base as a result of
extensive restructuring measures, its operating EBITA margin should
reach about 5%.
For the entire Group, management accordingly expects sales
growth in constant currencies to be slightly above 5% and its
operating EBITA margin to continue to improve by one to two
percentage points. Furthermore, management anticipates a
significantly positive operating cash flow.
The numbers mentioned above are still subject to final review by
the auditors. The final figures will be announced at the annual
press conference on March 9, 2010.
Current Image Files:
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of
Sartorius:
http://www.sartorius.com/media/content/press/support/Dr_Kreuzburg_4.jpg
Sartorius | Biotechnology Division (Sartorius Stedim
Biotech):
http://www.sartorius.com/media/content/press/support/SSB_Integrated_Solutions.jpg
Sartorius | Mechatronics Division:
http://www.sartorius.com/media/content/press/support/Mechatronics_AR_2008.jpg
Conference Call and Webcast:
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of
Sartorius, will discuss the preliminary figures for 2009 with
analysts and investors on Wednesday, February 10, 2010, at 4:00
p.m. Central European Time (CET), in a teleconference. You may dial
into the teleconference starting at 3:45 p.m. CET at the following
numbers:
Germany: +49 (0)69 2222 2244France: +33 (0)1 70 99 42 74UK: +44
(0)20 7136 2053USA: +1 212 444 0481
The dial-in code is: 841 5130; to view the webcast, log onto:
http://www.sartorius.com
Upcoming Financial Dates:
March 9, 2009 Annual press conference in Goettingen,
GermanyApril 21, 2010 Annual Shareholders’ Meeting in Goettingen,
GermanyApril 2010 Publication of first-quarter figures (Jan. –
March 2010)
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.
A Profile of Sartorius
The Sartorius Group is a leading international laboratory and
process technology provider covering the segments of biotechnology
and mechatronics. In 2009, the technology group earned sales
revenue of 602.1 million euros according to preliminary figures.
Founded in 1870, the Goettingen-based company currently employs
approximately 4,350 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.
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