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UPDATE 1-Getinge Q2 core profit lags forecast, makes new provision over Hechingen
July 17, 2017 / 6:59 AM / 2 months ago

UPDATE 1-Getinge Q2 core profit lags forecast, makes new provision over Hechingen

(Adds details, background, shares)

July 17 (Reuters) - Swedish medical technology firm Getinge posted second-quarter core profits and order intake below expectations on Monday and said it had taken a new provision for quality related work at one of its plants.

* Q2 EBITA before acquisition, restructuring and integration costs grew 10 pct yr/yr to 864 mln SEK ($104 mln) vs mean forecast 909 mln in Reuters poll

* Q2 order intake grew by 1.1 pct to 7.54 bln SEK vs mean forecast 7.77 bln

* Q2 order intake fell organically by 3.8 pct

* “Our business performance for the second quarter was not satisfactory,” Getinge CEO Mattias Perjos said in the report, citing the performance in the Surgical Workflows unit as one of the reasons

* Said largest downturn was in the Americas sales region, in the Life Science, Surgical Workplaces and Infection Control product segments, and in Infection Control in the EMEA sales region

* Getinge shares are up 14 pct YTD, compared with a 7 pct rise in the STOXX Europe 600 Health Care Index

* Said restructuring and integration costs amounted to 524 mln SEK (133), of which 488 mln comprised a provision for improvements in Hechingen in accordance with the Consent Decree with the U.S. Food and Drug Administration

* Net sales rose by 4.5 pct to 7.24 bln (6.93). Net sales fell organically by 0.5 pct

* Said expects organic sales growth to be slightly positive in 2017

* Said has appointed Lars Sandstrom Chief Financial Officer Source text for Eikon: Further company coverage: ($1 = 8.3193 Swedish crowns) (Reporting by Johannes Hellstrom)

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