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UPDATE 1-Getinge records biggest order intake rise for two years
October 15, 2015 / 12:30 PM / 2 years ago

UPDATE 1-Getinge records biggest order intake rise for two years

* Third-quarter order intake beats forecasts

* Shares in Swedish med-tech firm rise over 6 pct (Adds FDA costs, share, detail on growth)

STOCKHOLM, Oct 15 (Reuters) - Swedish medical technology group Getinge reported its biggest quarterly order intake increase for almost two years on Wednesday and said costs to resolve U.S. regulatory problems would be lower than previously expected.

The firm, which has seen its profit margins eroded in recent years by slower sales growth, price pressure and quality control problems in the United States.

Order intake was 7.4 billion Swedish crowns ($909 million) in the third quarter, above a mean forecast of 7.2 billion in a Reuters poll of analysts. That represented 5.2 percent rise from the same period a year before, on a like-for-like basis, the biggest increase since the fourth quarter of 2013.

“We saw, for example, continued increased demand on the North American market during the quarter, which is gratifying since it is one of our most important markets,” Getinge said.

The company also said it now expected costs related to an agreement with the U.S. Food and Drug Administration over quality control issues at manufacturing sites to be 375 million crowns, down from its previous estimate of 500 million.

Getinge shares were up 6.3 percent at 1148 GMT, the top performers on the STOXX Europe 600 Health Care Index, which was up 1.4 percent.

Earnings before interest, taxes, amortisation and restructuring costs fell about 10 percent to 828 million Swedish crowns. The mean forecast in the Reuters poll of analysts was 886 million.

Getinge repeated it expected sales growth to improve in 2015.

Link to company’s report:

$1 = 8.1443 Swedish crowns Reporting by Sven Nordenstam; Editing by Niklas Pollard and Pravin Char

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