April 28, 2020 / 5:38 AM / a month ago

BRIEF-Elekta Changes Outlook For 2019/20; Comments On Covid-19 Impact

April 28 (Reuters) - Elekta AB (publ):

* ELEKTA CHANGES OUTLOOK FOR 2019/20 AND ADDRESSES CHALLENGES RELATED TO COVID-19

* SAYS AS A RESULT OF IMPACT OF COVID-19 PANDEMIC ON OUR LAST QUARTER (ENDING APRIL 30), ELEKTA (EKTA-B.ST) CHANGES OUTLOOK FOR FISCAL YEAR 2019/20

* SAYS WE EXPECT NET SALES GROWTH OF AROUND 1 PERCENT COMPARED TO LAST YEAR BASED ON CONSTANT CURRENCY, AND AN EBITA MARGIN BETWEEN 16 AND 17 PERCENT

* SAYS DUE TO ONGOING UNCERTAINTIES RELATED TO DEVELOPMENT OF COVID-19 PANDEMIC, WE ALSO WITHDRAW OUR SCENARIO FOR 2020/21 TO 2022/23

* SAYS AN UPDATED OUTLOOK WILL BE PUBLISHED WHEN WE CAN FURTHER QUANTIFY IMPACT OF COVID-19 ON RADIATION THERAPY MARKET AND EFFECT ON OUR BUSINESS

* SAYS COVID-19 PANDEMIC HAS SWEPT LIKE A WAVE OVER WORLD AFFECTING ALL OUR MARKETS AND OUR BUSINESS, WITH AN INCREASING EFFECT IN APRIL

* SAYS IN CHINA ORDERS AND INSTALLATIONS WERE HALTED BUT ARE NOW RECOVERING

* SAYS PRODUCTION IS NOW RUNNING FULLY AT OUR BEIJING SITE AFTER IT RESTARTED ON FEBRUARY 10 ALREADY

* SAYS ORDER INTAKE AND SALES HAVE BEEN NEGATIVELY AFFECTED DURING QUARTER WITH AN INCREASING EFFECT IN APRIL DUE TO LIMITED ACCESS TO HOSPITALS AND DELAYED STARTS OF INSTALLATIONS AS A CONSEQUENCE OF LOCK DOWN OF COUNTRIES

* SAYS WE HAVE NOT EXPERIENCED ANY ORDER CANCELLATION IN QUARTER

* SAYS EBITA MARGIN IN Q4 WILL BE AFFECTED BY LOWER REVENUE, HOWEVER, WE WILL BE ABLE TO LEVERAGE FROM COST AND PRODUCTIVITY MEASURES, SUPPORTING AN INCREASE IN MARGIN COMPARED TO FIRST NINE MONTHS

* SAYS WE WILL CONTINUE AND STRENGTHEN PRODUCTIVITY INITIATIVES IN NEXT FISCAL YEAR TO MITIGATE EFFECTS OF COVID-19

* SAYS WE EXPECT OUR AVAILABLE CASH AT END OF APRIL 2020 TO AMOUNT TO APPROXIMATELY SEK 6 BILLION WITH BALANCED AND LONG MATURITIES Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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