Nine-month Figures: Sartorius Grows in Double Digits
Order intake and sales revenue up by double digits
Earnings rise by nearly one-fourth
Management slightly upgrades forecast for full-year earnings yet again
GOETTINGEN, Deutschland--(BUSINESS WIRE)-- Sartorius, a leading international laboratory and pharmaceutical equipment provider, successfully closed the first nine months of 2012, with substantial gains in order intake, sales revenue and earnings. The Bioprocess Solutions Division that primarily specializes in single-use products for pharmaceutical drug manufacture performed especially well. In addition, initial consolidation of the Biohit Liquid Handling business substantially boosted growth for the Laboratory Products & Services Division. Based on the company's strong business development in the first nine months, management slightly lifted its full-year guidance for its earnings yet again. Assuming that the currency exchange rates essentially remain favorable as in the first nine months of 2012, Sartorius expects adjusted earnings (operating EBITA) to increase by about 18% (former guidance: about 15%). Full-year guidance for sales remains unchanged: sales revenue is projected to grow by about 11% in constant currencies.
Dynamic Growth of Sales Revenue and Order Intake
In the first nine months of 2012, Sartorius increased its sales revenue year over year by 18.1%, or 13.8% in constant currencies, to 639.4 million euros. The Biohit Liquid Handling business acquired at the end of 2011 added approximately six percentage points to this gain. In the same period, order intake rose 15.8%, or 11.6% in constant currencies, to 636.6 million euros.
The Bioprocess Solutions Division, which accounts for more than half of consolidated revenue, continued on the growth track of the past quarters: it posted strong organic sales growth of 360.3 million euros, up 19.0%, or 14.4% in constant currencies. Order intake for the division also rose significantly by 13.6%, or 9.2% in constant currencies, to 356.6 million euros. Demand was high, especially for single-use products for the manufacture of biopharmaceuticals, such as specialty filters and aseptic bags and tanks.
The Lab Products & Services Division, which provides premium lab instruments and consumables, saw its nine-month sales revenue soar 22.5%, or 17.9% in constant currencies, to 202.5 million euros, and reported a jump in order intake of 27.4%, or 22.4% in constant currencies, to 203.9 million euros. Initial consolidation of the Biohit Liquid Handling business acquired at the end of 2011 contributed around 19 percentage points, based on constant currencies, to growth for this division.
The smallest Group division, Industrial Weighing, showed stable development, as projected. Its sales revenue improved against the moderate year-earlier revenue base by 4.5%, or 2.2% in constant currencies, to 76.7 million euros, while its order intake edged up 0.6% from 75.6 million euros a year ago to 76.1 million euros and thus remained approximately at the previous year's level (currency-adjusted -1.7%).
Regional analysis shows that North America posted the strongest growth in sales revenue, which was considerably up 25.3%. In Asia, business expanded by 11.7%; Europe saw a gain of 10.2% (all regional figures in constant currencies).
Significant Increase in Earnings
Based on its dynamic sales performance, Sartorius further increased its earnings year over year. The Group's operating earnings1) surged 22.7% from 81.5 million euros to 100.0 million euros; the respective margin for the Group climbed from 15.0% to 15.6%.
In the same period, the Bioprocess Solutions Division boosted its earnings 26.1% to 66.8 million euros; its margin rose from 17.5% to 18.5%. The Lab Products & Services Division considerably lifted its operating earnings by 16.2% to 26.4 million euros from 22.8 million euros in the previous period, with a margin of 13.1%, relative to 13.8% a year earlier. The Industrial Weighing Division achieved operating earnings of 6.8 million euros; its margin was 8.9% relative to 7.9% a year ago.
Including extraordinary items of -9.7million euros (9-mo. 2011 period: -7.7 million euros), Group EBITA soared year on year by 22.5% from 73.7 million euros to 90.3 million euros. These extraordinary expenses primarily were related to integration of the Biohit Liquid Handling business, transfer of single-use bag manufacture from California, USA, to Puerto Rico, and to various Group projects. The corresponding EBITA margin was 14.1% (9-mo. 2011 period: 13.6%). The Group's relevant net profit2) surged 22.1% from 38.3 million euros a year ago to 46.8 million euros. The Group's respective earnings per share are at 2.75 euros, up from 2.25 euros in the previous period.
Full-year Earnings Guidance Raised
Based on the company's strong business performance in the first nine months of the current fiscal year, management slightly raised its earnings guidance for the full year of 2012 yet again. Assuming that currency exchange rates remain favorable as in the first nine months of 2012, Sartorius now anticipates that operating EBITA will increase by about 18% (former guidance: about 15%), with its guidance for sales growth remaining unchanged at a projected rate of about 11% in constant currencies.
In view of the three divisions, Sartorius anticipates that currency-adjusted sales revenue for Bioprocess Solutions will grow approximately 11% (former guidance: about 10%). The division's operating EBITA is projected to increase by about 20% (former guidance: approximately 15%).
The company confirms its sales and earnings forecasts for the Lab Products & Services Division and the Industrial Weighing Division. According to the outlook for Lab Products & Services, the company continues to project that sales revenue will expand by approximately 16% to 20%, primarily due to initial consolidation of the Biohit Liquid Handling business. The division's operating EBITA is expected to increase by approximately 20% to 24%.
For the Industrial Weighing Division, the company expects both the currency-adjusted sales revenue and the operating EBITA of this division to show stable development relative to the year-earlier period.
1) Sartorius uses earnings before interest, taxes and amortization, EBITA, as the key profitability measure. To enable a more informative comparison of the figures given for the previous years, the company additionally reports operating earnings adjusted for extraordinary items (= operating EBITA) besides EBITA.
2) Underlying net profit after non-controlling interest, excluding non-cash amortization and effects from valuation adjustments of derivative financial instruments.
Key Figures for the First Nine Months of 2012
Current Image Files
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG:
Sartorius products used in the manufacture of medications:
Sartorius products used in laboratory research:
Conference Call and Webcast
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the figures for the first nine months of 2012 with analysts and investors on October 29, 2012, at 3:30 p.m. Central European Time in a webcast teleconference. You may dial into the teleconference starting at 3:20 p.m. CET at the following numbers:
Germany: +49(0)69 2999 3285
France: +33(0)1 70 48 01 63
UK: +44(0)20 3450 9571
USA: +1646 254 3387
The dial-in code is as follows: 4467739; the webcast and presentation can be viewed at: www.sartorius.com
Upcoming Financial Date:
January 2013 Publication of the preliminary figures for fiscal 2012
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 Bioprocess Solutions, Lab Products & Services and Industrial Weighing. In 2011, the technology group earned sales revenue of 733.1 million euros. Founded in 1870, the Goettingen-based company currently employs more than 5,000 persons. The major areas of activity of its Bioprocess Solutions segment cover filtration, fluid management, fermentation, cell cultivation and purification, and focus on production processes in the biopharmaceutical industry. The Lab Products & Services segment primarily manufactures laboratory instruments and consumables. Industrial Weighing concentrates on weighing, monitoring and control applications in the manufacturing processes of the food, chemical and pharma sectors. 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.
Petra Kirchhoff, +49 (0)551.308.1686
Vice President of Corporate Communications and IR
KEYWORDS: Europe Germany
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