* North American pharma customers reluctant to place orders
* 2017 revenue seen at lower end of guidance range
* Shares drop almost 6 percent
(Adds details on outlook, shares, analyst comment)
FRANKFURT, April 6 German drugs-packaging firm
Gerresheimer on Thursday said its major pharmaceutical
customers had been more cautious in placing orders due to
uncertainty over the new U.S. administration's policies, sending
its shares lower.
Revenues at Gerresheimer's business division that makes
glass bottles and vials for drugs fell 2.9 percent in its fiscal
first quarter through the end of February as sales in North
"Greater uncertainty with regard to the new U.S. government
triggered a relatively pronounced reticence among a number of
large pharma customers to place orders," Gerresheimer said in a
statement, adding that European cosmetic glass sales had risen.
President Donald Trump has promised to increase competition
in the pharmaceutical industry without giving details, while
promised healthcare reform has been delayed, leaving drugmakers
uncertain as to how pricing and demand may be affected.
Overall, Gerresheimer's revenues were down more than 5
percent at 302.8 million euros ($323.1 million) in the quarter,
missing analyst consensus of 307 million euros in a Reuters
The group said it expected full-year revenues at the lower
end of its forecast range of 1.405 billion to 1.455 billion
euros. Analysts on average see 2017 revenues of 1.43 billion
Shares in Gerresheimer fell 5.9 percent in early trading to
the bottom of the German mid-cap index, which slipped
"The fact that the management currently sees just the lower
end of the FY revenue guidance should not come as a major
negative surprise after the expected slow start to the year,"
said DZ Bank analyst Sven Kuerten, reiterating his "buy" rating.
Gerresheimer reiterated that adjusted earnings before
interest, tax, depreciation and amortisation (EBITDA) should
rise to around 320 million euros this year from 308 million in
2016, after a 6 percent slide in the first quarter.
($1 = 0.9366 euros)
(Reporting by Maria Sheahan and Georgina Prodhan; Editing by