April 26, 2018 / 9:18 AM / 3 months ago

Getinge to step up cost cuts after deeper-than-expected Q1 loss

STOCKHOLM, April 26 (Reuters) - Swedish medical technology group Getinge said on Thursday it would step up cost cuts after it reported a bigger than expected operating loss for the first quarter, sending its shares down nearly 5 percent.

The company swung to a quarterly operating loss of 161 million Swedish crowns ($18.73 million) from a 302 million profit last year to come in below the 62 million loss forecast in a Reuters poll of analysts.

The results included a previously announced 350 millon crown provision relating to investigations of alleged manipulation in bidding proceedings in Brazil.

Getinge, which sells products used in areas such as surgery, intensive-care, infection control and sterilization, said earnings had been negatively impacted by higher costs in research and development, quality and sales, as well as unfavourable currency swings.

“The work on reducing our total costs to a lower level in relation to sales, while maintaining the positive trend in sales and deliveries, will intensify,” Getinge Chief Executive Mattias Perjos said in a statement.

The company affirmed its previous forecast for organic sales growth to be slightly positive in 2018.

Getinge shares were down 4.5 percent at 0909 GMT, following the release of the results. ($1 = 8.5971 Swedish crowns) (Reporting by Johannes Hellstrom; editing by Niklas Pollard)

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