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Nine-Month Figures for 2011: Dynamic, Profitable Growth at Sartorius AG


10/21/2011 11:10:20 AM

GOETTINGEN, Germany, October 21, 2011 /PRNewswire/ --

  • Consolidated sales revenue rises 12.2% to 541.4 million euros
  • Operating profit soars 38.3 % to 81.5 million euros;
    profit margin up 15.0%
  • Management raises full-year guidance yet again

Sartorius, a leading international laboratory and process equipment provider, successfully closed the first nine months of 2011, with double-digit growth rates in sales revenue and earnings. Group CEO Dr. Joachim Kreuzburg, satisfied with good business development shown by the company's quarterly figures released, stated, "Both divisions and all regions have delivered growth and significant profit gains. Asia, in particular, has continued to show outstanding development."

Looking ahead to the final quarter of the year, Dr. Kreuzburg anticipates that the exceptionally high growth rates in the more cyclical Mechatronics Division will continue to return to normal. The reason is that the catch-up effects resulting from economic recovery are expected to tail off as the year progresses. By contrast, for the Biotechnology Division that generates a good two-thirds of consolidated sales, Dr. Kreuzburg projects dynamic growth.

Full-year 2011 sales guidance, which had already been raised at the end of first half, was increased by management yet again. Consolidated sales revenue is thus expected to grow on the basis of constant currencies from 6.4% in 2010 to 10% to 11% (former guidance: 8% to 10%). The company's outlook for the operating margin remains unchanged for 2011: This figure is projected to increase from 13.0% in 2010 to 14.5% to 15.5%.

Development of Order Intake and Sales Revenue

Sartorius increased its order intake over the year-earlier period by 8.5% (in constant currencies: +10.0%) to 551.3 million euros. In the same period, sales revenue rose 12.2% (in constant currencies: +13.8%) to 541.4 million euros.

Strong growth was fueled by both Group divisions: The larger Biotechnology Division increased its order volume by 10.5% (in constant currencies: +12.4%) to 365.7 million euros and its sales revenue by 10.9% (in constant currencies: +12.6%) to 353.5 million euros. Especially in demand were single-use products that pharma customers use in their production processes, such as special filters and bags, for instance. The Mechatronics Division, which generates around a third of consolidated revenue, also experienced dynamic development. Its order intake was up 4.6% (in constant currencies: +5.6%), to 185.7 million euros; sales revenue climbed 14.9% (in constant currencies: +16.0%) to 188.0 million euros. Both of the division's businesses with laboratory instruments and industrial weighing and control equipment, respectively, contributed to this positive development.

The regional pattern shows that Sartorius posted the highest gains in Asia/Pacific, as it had in the previous quarters. There, sales revenue jumped by nearly one-third (+30.6%) to 126.6 million euros as a result and was thus the highest growth region for both Group divisions. For the Biotechnology Division, revenue in Asia/Pacific was up 37.8%; the Mechatronics Division expanded sales there by 22.6%. In Europe as well, business developed dynamically, with sales up 10.8%. The Biotechnology Division contributed 8.2% and the Mechatronics Division 15.7% to this figure. In North America, growth was at 6.6% (Biotechnology Division: 7.4%; Mechatronics Division: 4.0%; all regional growth rates given in constant currencies).

Earnings Development

The gain in profit was even stronger than in sales revenue: Operating earnings* rose overproportionately in the first nine months and, at 81.5 million euros, were 38.3% higher than the year-earlier figure. The respective EBITA margin improved from 12.2% to 15.0%.

The Biotechnology Division contributed to this increase in earnings, reporting 60.9 million euros, which were up 21.7%. Its margin rose from 15.7% to 17.2%. The Mechatronics Division achieved especially vigorous growth in profitability: its earnings surged 132.8% to 20.6 million euros. Accordingly, the division's EBITA margin improved significantly, jumping from 5.4% a year ago to 10.9%. This considerable jump in earnings was due to the optimized cost structures of the Mechatronics Division, besides its increase in sales revenue.

Relevant net profit for the period** was 38.0 million euros, up from 26.4 million euros a year ago, which represents a gain of 43.8%. The corresponding earnings per share were at 2.23 euros, up from 1.55 euros a year earlier.

Outlook

Based on the Group's strong business performance, management has again revised its full-year 2011 guidance slightly upward: Sales in constant currencies are projected to grow for both divisions and thus also for the Group between 10% and 11% (former guidance: 8% to 10%). Earnings guidance is confirmed both for the two divisions and for the Group. Management therefore continues to expect that the Biotechnology Division and the Mechatronics Division will achieve an underlying EBITA margin of 17% to 18% and of 10% to 11% in constant currencies, respectively. At Group level, guidance remains unchanged for the operating EBITA margin, which is forecasted to improve to between 14.5% and 15.5%. Moreover, management continues to expect that operating cash flow will be significantly positive in 2011.

- - -

* Earnings before interest, taxes and amortization and adjusted for extraordinary expenses = underlying EBITA

** Relevant net profit = Earnings yielded by adjusting for extraordinary items, eliminating non-cash amortization and by taking non-controlling interest as well as tax effects into account

    EUR in
    millions
    (unless
    otherwise                         Biotechnology       Mechatronics
    specified)    Sartorius Group     Division            Division
                  9      9      Change  9     9      Change 9      9   Change
                  months months       months months       months months in %
                   2011  2010   in %   2011   2010   in %  2011  2010   
    Order intake  551.3  508.3   8.5  365.7  330.9  10.5  185.7 177.4    4.6
    Sales revenue 541.4  482.3  12.2  353.5  318.8  10.9  188.0 163.6   14.9
    EBITA[1]       81.5   58.9  38.3   60.9   50.1  21.7   20.6   8.8  132.8
    EBITA
    margin[1]      15.0%  12.2%        17.2%  15.7%        10.9%  5.4%
    Extraordinary
    expenses        7.7    3.3          3.6    0.9          4.1   2.4
    Net profit[1,2]38.0   26.4  43.8
    Earnings per
    share in EUR
    [1,2]          2.23   1.55  43.8


[1] Adjusted for extraordinary items (underlying)

[2] Excluding non-cash expenses for amortization

Current Image Files:

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG:

http://www.sartorius.com/media/content/press/support/Kreuzburg_2011.jpg

Sartorius | Biotechnology Division (Sartorius Stedim Biotech):

http://www.sartorius.com/media/content/press/support/Bioprocess_2011.jpg

Sartorius | Mechatronics Division:

http://www.sartorius.com/media/content/press/support/Laboratory_2011.jpg

Conference Call and Webcast:

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the nine-month results with analysts and investors today, October 21, 2011, at 3:30 p.m. Central European Time (CET), in a webcast teleconference. You may dial into the teleconference starting at 3:15 p.m. CET at the following numbers:

Germany: +49(0)69-2999-3285
France: +33(0)1-70-48-01-63
UK: +44(0)20-7660-0009
USA: +1-646-254-3375
The dial-in code is: 3684539

To view the webcast and presentation, log onto http://www.sartorius.com.

Upcoming Financial Date:

February 2012 Publication of the preliminary full-year figures for fiscal 2011

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 biotechnology and mechatronics. In 2010, the technology group earned sales revenue of 659.3 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 filtration, fluid management, cell cultivation, fermentation, purification 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 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.

Contact:Petra Kirchhoff, Vice President of Group Corporate Communications, Sartorius Corporate Administration GmbH; 37070 Goettingen, Germany, Phone: +49(0)551-308-1686; fax: +49(0)551-308-3572, E-mail: petra.kirchhoff@sartorius.com; http://www.sartorius.com

SOURCE Sartorius AG


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