New financial targets for Getinge AB
12/4/2009 4:59 AM EST
December 4, 2009
In conjunction with the Capital Markets Day that Getinge AB is hosting today, 4 December, some new information regarding the Group’s financial targets and earnings outlook will be presented.
Revised financial targets
The Group’s EBITA margin target is being raised from 18-19% to about 20%. For the Extended Care and Infection Control business areas, the previous EBITA margin targets of 19% and 16%, respectively, will remain in place. For Medical Systems, the EBITA margin target is being increased to 22% from the previous 19-20% target.
Getinge is also implementing a new cash flow target and aims to make operating cash flow comprise 60-70% of the Group’s EBITDA (cash-conversion).
Earnings outlook for 2009
For the current year, Getinge expects organic invoicing growth to total about 1%. Consolidated profit before tax was revised upward and is now expected to increase by about 20%, up from about 15%, compared with the result in 2008.
Earnings outlook for 2010
In the next financial year, Getinge expects organic invoicing growth to improve compared with 2009 as a result of a stabilised demand scenario in North America and continued robust growth in emerging markets. The demand for capital goods in Western Europe is expected to weaken, while the demand for services and disposables will be marginally affected. Getinge expects sales synergies resulting from acquisitions in recent years, and product launches to contribute to growth for the Group.
In terms of consolidated profit before tax for the 2010 financial year, Getinge anticipates double-digit improvement.
Tax rate for 2009 and 2010
Getinge estimates that the rate of tax will be 28% for 2009 and 27-28% for 2010.
Presentations from the Capital Markets Day are available on Getinge’s website
www.getingegroup.com For further information:
Johan Malmquist, CEO
+46 (0)35-15 55 00