Navigation Links
Gerresheimer Further Increases its Sales and Earnings Power

Sales in the Second Quarter up by 12.8% to EUR276.3m (First Half: up by

15.2% to EUR515.4m)

Adjusted Group Results in the Second Quarter Tripled From EUR6.3m to


CEO Dr. Axel Herberg Confirms the Prospects for 2008

DUSSELDORF, Germany, July 15 /PRNewswire-FirstCall/ -- Gerresheimer AG again increased its sales and results in the second quarter of 2008. Compared with the second quarter of 2007, sales improved by 12.8%, or 16.5% on a like-for-like exchange-rate basis, to EUR276.3m. Operating results (Adjusted EBITDA) rose by 20.2% to EUR53.6m (second quarter of 2007: EUR44.6m). In the second quarter of 2008 Gerresheimer therefore achieved an adjusted EBITDA margin of 19.4% (second quarter of 2007: 18.2%). Contributions to this gratifying development were made by the positive sales trend in the market segments of pharmaceutics and cosmetics and by the latest acquisitions. Overall, Gerresheimer therefore continued the improvement in its earnings position in the second quarter and thus the first half of 2008 as a whole. Adjusted Group results increased in the second quarter of 2008 to EUR17.6m and in the first half to EUR27.5m. This means a three-fold rise and means adjusted earnings per share of EUR0.53 in the second quarter and EUR0.82 for the first half of 2008.

"Following our record year in 2007 we have again increased our sales and profit in the first half of 2008," says Dr. Axel Herberg, CEO of Gerresheimer AG. "We expect further growth in all divisions during the course of the year and will consistently continue to focus on pharma & life science."

Just recently, Gerresheimer's discontinuation of peripheral operations such as consumer health care confirmed this concentration on pharmaceutics and life science.

Thanks to the positive development in the second quarter a marked improvement in results has also been achieved for the first half of 2008 as a whole. Sales rose by 15.2%, or 18.9% on a like-for-like exchange-rate basis, to EUR515.4m (first half of 2007: EUR447.3m). Operating results (Adjusted EBITDA) increased by 20.3% from EUR80.3m (first half of 2007) to EUR96.6m. This positive development was supported by good performance by all the divisions.

Positive development of all divisions

The Tubular Glass Division improved its sales in the second quarter of 2008 by 10.3 % to EUR78.0m (second quarter of 2007: EUR70.7m). The main contributor was increased demand in the segment of RTF syringe systems. Production capacity here is already fully utilised, so a further RTF facility is therefore being constructed and is to commence production in early 2009. A further contribution to growth was made by the high level of demand for pharmaceutical vials in the USA, marked expansion in the Chinese market and the pharma glass business of Comar Inc. which was acquired in March 2007. Operating results (Adjusted EBITDA) improved by 22.8 % to EUR19.4m.

Sales by the Plastic Systems Division rose to EUR93.6m (second quarter of 2007: EUR79.6m). This is equivalent to an increase of 17.6 %. The high-margin segment of medical plastic systems developed particularly positively. Here sales of inhalers and diabetes-care products and the segment of molecular diagnostics grew substantially. Through the sale of the consumer health care business at the start of the third quarter, Gerresheimer has in addition further focussed the business of the Plastic Systems Division on the pharma and life-science market. Operating results (Adjusted EBITDA) rose by 21.8 % from EUR14.7m (second quarter of 2007) to EUR17.9m.

Sales by the Moulded Glass Division in the second quarter of 2008 totalled EUR85.6m. This is equivalent to an increase of 6.1 % in comparison with the prior year (second quarter of 2007: EUR80.7m), well ahead of the market average. The growth was attributable to higher sales of pharmaceutical vials in the USA and Europe and of cosmetics products. Thanks to targeted investments in productivity improvements and continued high capacity utilisation, Gerresheimer achieved a substantial margin improvement in the Moulded Glass Division. Compared with the prior year (second quarter of 2007: EUR16.7m), operating results (Adjusted EBITDA) increased by 11.4 % to EUR18.6m.

Sales by the Life Science Research Division in the second quarter of 2008 totalled EUR22.6m, an increase of 51.7 % (second quarter of 2007: EUR14.9m). This growth was largely attributable to the life-science research business of Thermo Fisher Scientific which was contributed to the Kimble Chase joint venture in July 2007 and successfully integrated. Major contributions to the positive results were also made by the Division's Chinese operations and cost savings through production relocations. Operating results (Adjusted EBITDA) improved from EUR1.5m (second quarter of 2007) to EUR2.7m in the second quarter of 2008.

Gerresheimer confirms the future prospects

Despite continuing turbulence in the worldwide finance markets and dramatically rising energy costs, Gerresheimer expects a sustained positive trend in the markets in which it operates. Thanks to the positioning of its product portfolio, Gerresheimer will enjoy above-average participation in this. Assuming an exchange rate of USD 1.55 : EUR 1.00, sales growth of 9% to 11% is expected for the current financial year. This is equivalent to a growth rate of 14% to 16% on a like-for-like exchange-rate basis for the businesses which have been continued.

Thanks to the sales growth and productivity increases, Gerresheimer continues to expect that operating results (Adjusted EBITDA) for the financial year 2008 will mean an improvement in the adjusted EBITDA margin to around 19.5 %.

The sound balance sheet structure and equity ratio combined with the significant reduction in financial liabilities after the IPO in 2007 plus the cash flow generated will in the future enable Gerresheimer to achieve further organic growth and successfully continue its strategy of selective acquisitions. The funds available will be invested primarily in the field of pharmaceutics and life science.

About Gerresheimer

Gerresheimer employs more than 10,300 people in 40 locations in Europe, America and Asia. In the financial year 2007, worldwide sales totalled around EUR958m. The product portfolio ranges from pharmaceutical vials made of glass and plastic through to complex drug-delivery systems for the pharma & life science industry. These include sterile syringes, inhalers and other system-based approaches for safe dosage and application of medications. The Group enjoys a leading position in markets which are characterised by high technical and regulatory barriers.

Group Key Figures (IFRS)

(End of Q1: May 31; Financial Year end November 30)

EUR million Q2 2008 Q2 2007 Change % Q1-Q2 Q1-Q2 Change % FY 2007

2008 2007

Net sales 276.3 245.0 +12.8 515.4 447.3 +15.2 957.7

Adjusted EBITDA(1) 53.6 44.6 +20.2 96.6 80.3 +20.3 181.6

in % of net sales 19.4 18.2 18.7 18.0 19.0

Adjusted EBITA 34.9 28.8 +21.2 60.4 50.7 +19.1 116.6

in % of net sales 12.6 11.8 11.7 11.3 12.2

Profit from 18.6 12.4 +50.0 33.5 23.8 +40.8 53.3

operations (EBIT)

Net income 5.6 -4.0 >100 8.1 -8.0 >100 0.8

Adjusted net 17.6 6.3 >100 27.5 9.0 >100 44.3


Earnings per share 0.14 - 0.20 - -0.04

Adjusted earnings 0.53 - 0.82 - 1.34

per share(3)

Segment Key Figures

EUR million Q2 2008 Q2 2007 Change % Q1-Q2 Q1-Q2 Change % FY 2007

2008 2007

Tubular Glas

Net sales 78.0 70.7 +10.3 143.7 130.9 +9.8 271.2

Adjusted EBITDA(1) 19.4 15.8 +22.8 35.1 30.8 +14.0 66.7

Plastic Systems

Net sales 93.6 79.6 +17.6 170.8 135.9 +25.7 299.7

Adjusted EBITDA(1) 17.9 14.7 +21.8 32.0 24.4 +31.1 56.1

Moulded Glass

Net sales 85.6 80.7 +6.1 163.2 154.6 +5.6 318.8

Adjusted EBITDA(1) 18.6 16.7 +11.4 34.6 30.0 +15.3 65.1

Life Science


Net sales 22.6 14.9 +51.7 44.4 26.9 +65.1 72.2

Adjusted EBITDA(1) 2.7 1.5 +80.0 5.1 2.8 +82.1 7.7


(1) Adjusted EBITDA: earnings before income taxes, financial result,

amortization of fair value adjustments, extraordinary depreciation,

depreciation and amortization, restructuring expenses and one-off

income and expenses

(2) Net income before non-cash amortization of fair value adjustments,

special effects from restructuring expenses, extraordinary

depreciation, the balance of one-off income and expenses (including

significant non-cash expenses) and the related tax effects

(3) Adjusted net income after minorities divided by 31.4m shares

Contact Press Contact Investor Relations

Burkhard Lingenberg Anke Linnartz

Director Corporate PR & Marketing Director Corporate Investor Relations

Telephone +49-211-6181-250 Telephone +49-211-6181-314

Telefax +49-211-6181-241 Telefax +49-211-6181-121

E-mail E-mail

SOURCE Gerresheimer AG
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Yves Lionel Assant is New Chairman of Gerresheimers Supervisory Board
2. 2007 Another Record Year in Terms of Sales and Earnings for Gerresheimer
3. Gerresheimer: Record Year in 2007 and Positive Outlook for 2008
4. Moodys Raises Rating for Gerresheimer
5. Gerresheimer Discontinues Marginal Operations
6. Angiotech announces additional diameters of sutures to further expand its Quill(TM) SRS PDO product line
7. China Sky One Medical Receives $1.5 Million Government Grant to Further Develop Six New Cancer Products
8. VaxGen Further Restructures to Preserve Cash as It Pursues Strategic Initiatives
9. Adds Mobile Phone Capability Further Speeding Access to Experienced Monitors
10. New Data Presented on Immunocytokine Fusion Protein Further Supports Broad Anti-Cancer Potential Of Peregrines Anti-PS Technology Platform
11. Organons Asenapine Further Demonstrates Efficacy in Reducing Mania Symptoms for the Treatment of Bipolar I Disorder
Post Your Comments:
(Date:10/10/2017)... Parks Associates announced today that Tom Kerber , Director ... , October 11 in Scottsdale, Arizona . Kerber will ... safety and security products impact the competitive landscape. ... Parks Associates: Smart Home Devices: Main Purchase Driver ... "The residential security market has experienced continued growth, and the introduction of ...
(Date:10/10/2017)... ... October 10, 2017 , ... The Pittcon ... awards honoring scientists who have made outstanding contributions to analytical chemistry ... Pittcon 2018, the world’s leading conference and exposition for laboratory science, which will ...
(Date:10/9/2017)... ... ... At its national board meeting in North Carolina, ARCS® Foundation ... Physics and Astronomy, has been selected for membership in ARCS Alumni Hall of ... Breakthrough Prize in Fundamental physics for the discovery of the accelerating expansion of the ...
(Date:10/7/2017)... ... October 06, 2017 , ... ... for microscopy and surface analysis, Nanoscience Instruments is now expanding into Analytical ... broad range of contract analysis services for advanced applications. Services will leverage ...
Breaking Biology Technology:
(Date:4/4/2017)... NEW YORK , April 4, 2017   ... solutions, today announced that the United States Patent and ... The patent broadly covers the linking of an iris ... the same transaction) and represents the company,s 45 th ... our latest patent is very timely given the multi-modal ...
(Date:3/30/2017)... 2017  On April 6-7, 2017, will host ... hackathon at Microsoft,s headquarters in Redmond, ... on developing health and wellness apps that provide a ... Genome is the first hackathon for personal genomics ... companies in the genomics, tech and health industries are ...
(Date:3/30/2017)... -- Trends, opportunities and forecast in this market to ... AFIS, iris recognition, facial recognition, hand geometry, vein recognition, ... industry (government and law enforcement, commercial and retail, health ... and by region ( North America , ... , and the Rest of the World) ...
Breaking Biology News(10 mins):