Navigation Links
Gerresheimer Holds its own in Difficult Environment
Date:7/15/2009

    - Sales in the First Half of 2009 (Excluding Technical
      Plastics) at Prior Year Level

    - Growth in the Pharma Business

    - Sales Decline in the Cyclical Segments of Cosmetics and
      Laboratory Glassware

In the first half of 2009, Gerresheimer AG achieved sales at the prior year level despite the continuing worldwide economic crisis. This result was mainly attributable to sales growth for pharmaceutical packaging and systems, with which Gerresheimer today makes more than 70% of Group sales. In contrast, sales declines were recorded in the more cyclical segments of cosmetics and laboratory glassware. In comparison with the prior year, sales in the second quarter of 2009 declined by 4.3% on a nominal basis to EUR 264.4m and, excluding the Technical Plastics business just sold, by 2.2% to EUR 251.6m. The operating margin (adjusted EBITDA margin) excluding the business just sold reached a high level in the second quarter of 2009 at 18.9%. For the year as a whole, Gerresheimer expects the sales trend excluding Technical Plastics to be +1% to -3% with an adjusted EBITDA margin of 18.0% to 18.5%.

In the course of its continued focus on the markets of pharma & life science the sale of the Technical Plastics business was successfully completed as per July 1, 2009. The transaction price including debts taken over was around EUR 12m.

"Growth in our core markets of pharma & life science has been and remains the basis of our profitable business development. This applies all the more at a time of economic crisis," says Dr. Axel Herberg, CEO of Gerresheimer AG. "With the successful sale of the peripheral business of Technical Plastics we have taken another important step in focusing the business," Herberg adds.

Growth for pharmaceutical products

Regardless of the continued trend towards inventory reductions by some pharma companies, Gerresheimer achieved sales growth with products for the pharma industry once again in the second quarter of 2009. Major contributions were made by Medical Plastic Systems, which continue to be a particular growth generator, and good sales of pharmaceutical primary packaging such as ampoules and vials in Europe and China. Installation of the third RTF(R) syringe line was completed according to plan so that customer-specific valida­tions could be commenced.

As in the first quarter, however, continuing weak demand in the cosmetics segment led to a decline in sales of cosmetic packaging. A similar situation applies for laboratory glassware products, where a temporary sales decline was experienced because of inven­tory reductions and purchasing cautiousness by customers.

Outlook for 2009

Despite the imponderable factors with regard to further world economic development Gerresheimer continues to expect growth in the field of pharmaceutical packaging and systems. In the more cyclical segments cosmetics and laboratory glassware, Gerresheimer experienced a marked decline in demand in the first half year. Fore­casts for the further course of the financial year are difficult. Gerresheimer AG does not however assume any short-term recovery of these markets. The sound balance sheet and long term financ­ing structure as well as a good operating performance will enable Gerresheimer to continue the growth strategy in the pharma & life science segment going forward.

About Gerresheimer

Gerresheimer employs around 10,000 people in 40 locations in Europe, America and Asia. In the financial year 2008, worldwide sales totaled EUR 1.06bn. 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 characterized by high technical and regulatory barriers.

    Group Key Figures
    (IFRS; End of Q2: May 31; Financial Year end November 30)

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

                            2009  2008           2009  2008
    Net sales              264.4 276.3     -4.3 501.7 515.4     -2.7 1.060.1
    Group net sales
    excluding TPS(1)       251.6 257.2     -2.2 478.0 477.2     +0.2   985.9
    Adjusted EBITDA(2)      47.5  53.6    -11.4  85.8  96.6    -11.2   206.4
    in % of net sales       18.0  19.4           17.1  18.7             19.5
    Adjusted EBITDA(2)      47.5  N/A(3)         86.5  N/A(3)          N/A(3)
    excluding TPS
    in % of net sales       18.9  N/A(3)         18.1  N/A(3)          N/A(3)
    Profit from operations
    (EBIT)                  11.8  18.6    -36.6  21.0  33.5    -37.3    61.0
    Net income               0.9   5.6    -83.9  -0.1   8.2              4.5
    Adjusted net income(4)  14.3  17.6    -18.8  20.7  27.5    -24.7    61.4
    Earnings per share in
    EUR                     0.02  0.14    -85.7 -0.04  0.20             0.02
    Adjusted earnings
    per share(5) in EUR     0.44  0.53    -17.0  0.63  0.82    -23.2    1.83

---------------------------------

(1) Net sales of the recently divested Technical Plastics business (sold with effect from July 1, 2009) include the sales of the Technical Plastics tool business and amounted to EUR 74.2m in FY 2008

(2) 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

(3) The adjusted EBITDA of the Technical Plastic Systems business of the comparative prior year period is not available due to the fact that the divestment was carried out in the course of the financial year and is therefore included in the Plastic Systems segment

(4) Adjusted net income: Consolidated profit 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

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

    Contact Press
    Burkhard Lingenberg
    Director Corporate Communication & Marketing
    Phone +49-211-6181-250
    Fax +49-211-6181-241
    e-mail b.lingenberg@gerresheimer.com

    Contact Investor Relations
    Anke Linnartz
    Director Corporate Investor Relations
    Phone +49-211-6181-314
    Fax +49-211-6181-121
    e-mail a.linnartz@gerresheimer.com



'/>"/>
SOURCE Gerresheimer AG
Copyright©2009 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. Gerresheimer Further Increases its Sales and Earnings Power
7. Gerresheimer Starts Process to Sell off its Business Segment of Technical Plastics
8. Gerresheimer Substantially Increases Quarterly Operating Profit
9. Following a Record Year in 2008 Gerresheimer Again Sets its Sights on Substantial Growth in 2009
10. 2008 a Record Year for Gerresheimer
11. Gerresheimer Opens New High-Tech Production Facility for Pharma Glass in China
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/12/2017)... ... October 12, 2017 , ... AMRI, a global ... industries to improve patient outcomes and quality of life, will now be offering ... being attributed to new regulatory requirements for all new drug products, including the ...
(Date:10/11/2017)... ... October 11, 2017 , ... The CRISPR-Cas9 ... overexpression experiments and avoiding the use of exogenous expression plasmids. The simplicity of ... performing systematic gain-of-function studies. , This complement to loss-of-function studies, such as ...
(Date:10/11/2017)... ... October 11, 2017 , ... Proscia Inc ., ... a Webinar titled, “Pathology is going digital. Is your lab ready?” with Dr. ... best practices and how Proscia improves lab economics and realizes an increase in ...
(Date:10/11/2017)... ... ... Disappearing forests and increased emissions are the main causes of the evolving ... those living in larger cities are affected by air pollution related diseases. , That ... countries globally - decided to take action. , “I knew I had to take ...
Breaking Biology Technology:
(Date:3/30/2017)... , March 30, 2017  On April 6-7, 2017, ... the Genome hackathon at Microsoft,s headquarters in ... competition will focus on developing health and wellness apps ... Hack the Genome is the first hackathon ... The world,s largest companies in the genomics, tech and ...
(Date:3/30/2017)... NEW YORK , March 30, 2017 ... by type (physiological and behavioral), by technology (fingerprint, AFIS, ... recognition, voice recognition, and others), by end use industry ... travel and immigration, financial and banking, and others), and ... Europe , Asia Pacific ...
(Date:3/28/2017)... 2017 The report "Video Surveillance ... Servers, Storage Devices), Software (Video Analytics, VMS), and Service ... Forecast to 2022", published by MarketsandMarkets, the market was ... projected to reach USD 75.64 Billion by 2022, at ... base year considered for the study is 2016 and ...
Breaking Biology News(10 mins):