Sartorius (TG:SRT)
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The Sartorius Group continued its successful development in the first
half of 2007. Even without including initially consolidated French-based
Stedim S.A., the Sartorius Group again increased its order intake, sales
revenue and earnings. Both divisions and all business regions of the
Group contributed to the positive results. In particular, business with
disposable products for biotechnological applications as well as with
industrial weighing equipment was especially encouraging, generating
double-digit growth rates.
On a pro forma(1) basis, i.e., by mathematically including Stedim,
first-half order intake of the Group climbed 8.6% to 331.6 million euros
(1st half 2006: without Stedim 261.3 million
euros; pro forma 305.4 million euros). This corresponds to a
currency-adjusted gain of pro forma 11.4%. First-half sales revenue for
the Group in 2007 was pro forma 312.2 million euros (1st
half 2006: without Stedim 257.1 million euros; pro forma 302.9 million
euros).
This corresponds to an increase of pro forma 3.1% or a currency-adjusted
gain of 5.5%. Sartorius posted strong increases in North America and
Asia Pacific. In Europe, moderate growth was achieved. Excluding Stedim,
the Group achieved growth in constant currencies of 12.4% in order
intake and 5.6% in sales revenue.
EBITA of the Group rose to 24.4 million euros from 22.0 million euros
reported for the previous year. On a pro forma basis, earnings are at a
substantially higher level. Adjusted for extraordinary expenses,
earnings were 29.9 million euros, up from 29.5 million euros a year ago.
Thus, the pro forma operating EBITA margin was 9.6% (1st
half 2006: 9.7%).
“By combining our Biotechnology Division with
Stedim, we are boosting the Group to new levels in sales revenue and
earnings,“ commented Dr. Joachim Kreuzburg,
Executive Board Chairman and CEO of Sartorius AG, concerning the first
interim report following the closing of the Stedim transaction. “For
2007, we expect to generate pro forma sales revenue of more than 25
percent above the actual 2006 sales revenue figure as well as pro forma
operating earnings of more than 50 percent above actual 2006 earnings.”
Overall, 2007 for Sartorius has been shaped by the guiding policy of
acceleration. In addition to key strategic steps, such as the
combination of the Biotechnology Division with publicly listed Stedim
and the acquisition of the plastic-processing manufacturer toha-plast,
expansion of laboratory capacity in Goettingen, Germany, and extension
of the Group facilities in Beijing, China, were completed in the first
half.
This is also reflected in the total of capital expenditures: during the
first months of fiscal 2007, the Group invested 18.4 million euros
(without Stedim), considerably more than in the previous year (11.2
million euros). Also, as of the first half, the number of employees
increased significantly to a total of 4,505 (December 31, 2006: 3,749).
Above all, this can be attributed to the incorporation of some 500
Stedim employees and about 80 staff members of Sartorius toha-plast into
the Group workforce.
R&D costs were 20.6 million euros (without Stedim), thus 7.7% of sales
revenue, and were essentially due to the additional employment of
specialized personnel and the expansion of our research and development
facilities.
Relative to December 31, 2006, the balance sheet total of the Sartorius
Group approximately doubled to 765.3 million euros, primarily on account
of the Stedim transaction. After completion of the Stedim transaction,
the equity ratio was at 42.2% (December 31, 2006: 44.8%) and thus has
continued to remain at a very comfortable level.
Business Development of the Divisions
Since its combination on June 29, 2007, with Stedim, the Biotechnology
Division, which is now renamed Sartorius Stedim Biotech, reported
a substantial first-half 2007 gain of pro forma 10.1% in order intake
(currency-adjusted: 13.1%) to 198.3 million euros (1st
half 2006: pro forma 180.1 million euros; without Stedim 136.1 million
euros). Pro forma sales revenue rose 2.7% (currency-adjusted: 5.3%) to
186.6 million euros (1st half 2006: pro forma 181.7 million euros;
without Stedim 135.9 million euros). Here, growth was fueled in
particular by considerable double-digit growth rates generated by
single-use products.
Pro forma operating EBITA for the Biotechnology Division was 21.3
million euros. This corresponds to an EBITA margin of 11.4%. In the
reporting period, the Biotechnology Division incurred pro forma
extraordinary expenses totaling 3.2 million euros, which essentially
consisted of extraordinary expenses at Stedim as well as transaction and
integration expenses.
The Mechatronics Division substantially increased its first-half order
intake
by 6.4% (currency-adjusted: 8.9%) to 133.3 million euros from 125.3
million euros a year ago. Its sales revenue grew 3.7%
(currency-adjusted: 5.9%) to 125.6 million euros from 121.2 million
euros a year earlier. In particular, business with industrial weighing
equipment showed highly positive development, generating double-digit
growth rates.
EBITA for the Mechatronics Division rose from 7.2 million euros to 8.6
million euros. Accordingly, its EBITA margin climbed from 5.9% to 6.9%.
Assessment and Outlook
Group chief executive Dr. Kreuzburg was satisfied with the progress of
the first half and with that of the integration of the two acquisitions: “In
the first half, we really moved forward and accomplished quite a lot
through our acquisitions and investments as well as implementation of
the new group structure, laying the groundwork for accelerated growth in
sales revenue and earnings. Considerable progress has already been made
with the integration of Stedim, and that involving toha-plast has
already been completed.” Dr. Kreuzburg
assessed the future prospects of the Group as positive as well: “In
both divisions, we see ourselves on track for achieving our ambitious
mid-range financial targets.”
Based on the strong order intake trend in the first half of 2007 and the
further business expectations, the Group confirms its pro forma
operating sales forecast to date. However, due to the unfavorable
development of the exchange rates during the past months, it has
adjusted its pro forma sales forecast in the reporting currency to 650
to 670 million euros (previous forecast 660 to 680 million euros;
year-earlier period: without Stedim 521.1 million euros). For the
Biotechnology Division, the Group anticipates that it will generate pro
forma sales revenue of 390 to 410 million euros (year-earlier period:
without Stedim 271.0 million euros). For the Mechatronics Division, the
Group expects to earn sales revenue of about 260 million euros
(year-earlier period: 250.0 million euros).
On the basis of these sales revenue expectations, Sartorius (FWB:SRT) is
continuing to pursue its target for fiscal 2007 of increasing the pro
forma underlying EBITA margin to approximately 12% (year-earlier period:
without Stedim 10.0%). For the Biotechnology Division, the full-year pro
forma underlying EBITA margin is expected to reach about 14%; for the
Mechatronics Division, roughly 9%. For fiscal 2007, the Group estimates
that the sum of extraordinary expenses resulting from the Stedim
transaction and integration within the Biotechnology Division will be
about 10 million euros.
(1)For the Biotechnology Division and thus for the Sartorius Group as
well, so-called pro forma disclosures are made that mathematically
include Stedim and that are for the purpose of ensuring better
comparability of the figures under the technical assumption that Stedim
was already consolidated for the first time as of January 1, 2006. For
the Mechatronics Division, it is not necessary to provide pro forma
numbers for the key figures. You will find an in-depth first-half report
along with detailed pro forma and actual figures at www.sartorius.com.
Current image files:
Joachim Kreuzburg, Executive Board Chairman and CEO of Sartorius AG:
www.sartorius-stedim.com/media/content/press/support/
Dr_Kreuzburg.jpg
(Due to its length, this URL may need to be copied/pasted into your
Internet browser's address field. Remove the extra space if one exists.)
Working in the laboratory with equipment from Sartorius:
http://www.sartorius.com/fileadmin/presse/Sartorius.jpg
Biopharmaceutical filtration process using Sartorius disposable products:
http://www.sartorius.com/media/content/press/support/Sartorius.jpg
Upcoming financial dates:
October 31, 2007(a)
Nine-month report 2007
March 13, 2008(a)
Annual press conference in Goettingen, Germany
April 23, 2008(a)
Annual Shareholders' Meeting in Goettingen, Germany
(a) tentative date
This press release contains statements about the future development of
the Sartorius Group. We cannot guarantee that the content of these
statements will actually apply because these statements are based upon
assumptions and estimates that harbor certain risks and uncertainties.
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
521.1 million euros. The Goettingen-based company founded in 1870
currently employs approximately 4,500 persons. Its biotechnology segment
covers major areas of focus on fermentation, filtration, purification,
fluid management and laboratory applications. For the mechatronics
segment in particular, the company manufactures equipment and systems
featuring weighing, measurement and automation technology for laboratory
and industrial applications, as well as hydrodynamic bearings. 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.
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.