|[March 07, 2014]
Getinge Group: Getinge Announces Outlook for First Quarter 2014
GETINGE, Sweden --(Business Wire)--
Medical Systems business area makes significant investments in quality
As announced earlier, the Medical Systems business area is currently
implementing significant efforts to strengthen its quality management
system. The measures are the result of observations received in
connection with several inspections by the US Food and Drug
Administration (FDA) during the second half of 2013 and the business
area's own internal evaluations and observations.
External consultants have been retained to enhance the quality
management system for the business area at its manufacturing facilities
around the world. The costs of consultant support for both the business
area management and the manufacturing units affected are expected to
amount to approximately SEK 125 million per quarter from the first
quarter of 2014. Consulting costs are anticipated to remain for a period
of six to seven quarters and will be reported separately in future.
Outlook for the first quarter of the year
As well as the additional costs related to the strengthening of Medical
Systems' quality management system, the profit trend for the current
quarter will be weak due to a lower level of invoicing. Gtinge's
invoicing varies considerably between the quarters due to customers'
requests regarding the timing of deliveries of ordered capital goods,
which represent about 50% of Getinge's sales. In addition to the weak
invoicing for capital goods during the quarter, the Cardiovascular
division was impacted by disruptions to production resulting from a
change in raw materials specification from a subcontractor. The negative
earnings effect of the production disruption is estimated to amount to
approximately SEK 60 million.
Taking into consideration the above and the more challenging currency
situation, it is estimated that Getinge's pretax profit for the first
quarter will amount to approximately SEK 160 million (252).
Apart from the additional costs resulting from the strengthening of the
quality management system in Medical Systems and SEK 60 million
pertaining to the disruptions to production in the Cardiovascular
division, the outlook presented in the most recent Year-end Report
This announcement will be followed by a conference call at 11.00 AM CET
today, hosted by Johan Malmquist, CEO Getinge Group and Ulf Grunander,
CFO Getinge Group.
Getinge will issue its full Q1 report for 2014 on April 16.
To participate, please call:
Sweden: +46 (0)8 5065 3936 UK: +44 (0)20 3427 1909 US: +1 212 444 0896
10.45 Call the conference number 11.00 Introduction 11.10 Q&A12.00 End
A recorded version of the conference will be accessible for five working
days at the following number:
Sweden: +46 (0)8 5051 3897 UK: +44 (0)20 3427 0598 US: +1 347 366 9565
The Getinge Group is a global leading medical technology company that
operates in the areas of surgery, intensive care, infection control,
care ergonomics and wound care. The Group is divided into three business
areas: Medical Systems, Extended Care and Infection Control and operates
under the brands ArjoHuntleigh, Getinge and Maquet.
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