Substantial Revenues and Earnings Plus for Gerresheimer

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Jul 14, 2010, 03:19 ET

    DUSSELDORF, Germany, July 14, 2010 /PRNewswire-FirstCall/ --

    - Group Revenues in the Second Quarter up by 6.8% (Excluding
      Technical Plastic Systems)

    - Further Solid Growth of the Pharma Business - Improvement in
      the Cosmetics and Life Science Research Segments

    - Operating (Adjusted EBITDA) Margin at High Level of 20.9%

    - Profit From Operations More Than Doubled to EUR 24.8m

    - Revenue Guidance for 2010 Specified and Margin Guidance
      Raised

Gerresheimer AG, one of the leading worldwide suppliers to the pharma and healthcare industry, remained on its growth path during the second quarter of the financial year 2010. "Our business developed very well in the second quarter. The demand for our products in the pharma industry has grown and there has also been an improvement recently in the Cosmetics and Life Science Research businesses," says Uwe Rohrhoff, the new CEO of Gerresheimer AG since June 22, 2010.

In the period from March to May 2010, the company increased its revenues (excluding the Technical Plastic Systems business which has been sold) by 6.8% compared with the prior year. At constant exchange rates the growth rate in the second quarter was 5.6%. During the first six months of the financial year 2010, the revenue growth at constant exchange rates was 3.6%. Revenues in the second quarter totaled EUR 268.8m (second quarter of 2009 excl. Technical Plastic Systems: EUR 251.6m). In addition to sales growth in the segment of primary pharmaceutical packaging, Gerresheimer profited from the improvement in the more cyclical Cosmetics and Life Science Research businesses in the second quarter.

The operating margin (Adjusted EBITDA margin) improved by 2.9 percentage points on the prior year to 20.9% (Adjusted EBITDA margin first six months 19.2%). As a result of the revenues and margin increase, Adjusted EBITDA improved to EUR 56.3m (prior year EUR 47.5m). The profit from operations also improved substantially to EUR 24.8m (prior year: EUR 11.8m). Adjusted earnings per share increased significantly from EUR 0.44 to EUR 0.59.

"We want to remain on our profitable growth path. To this end we will push ahead with the globalization of our business. We therefore want to be an attractive investment for our shareholders and the financial markets. And we take our corporate responsibility towards all stakeholder groups very seriously," says the new CEO Uwe Rohrhoff, outlining his objectives for the company.

Outlook

For the financial year 2010, Gerresheimer AG continues to expect revenues growth in the pharma business, also supported by the emerging markets. The market trend in the more cyclical segments of Cosmetics and Life Science Research (laboratory glassware) is despite first signs of recovery on the other hand more difficult to assess.

On the basis of the good results in the second quarter, Gerresheimer is slightly raising the lower limit of the guidance for the revenues for the financial year 2010. The company assumes revenues, excluding Technical Plastic Systems and at constant exchange rates, to grow by 3% to 4%, compared with 2% to 4% previously. Due to the stronger US Dollar this equivalents a nominal growth rate of 5% to 6% compared with 2% to 4% previously. The forecast for the Adjusted EBITDA margin is raised to 19.5% to 20% (previously around 19.5%). The planned total volume of investment is confirmed at EUR 75 to 80 million.

About Gerresheimer

Gerresheimer is an internationally leading manufacturer of high-quality specialty products made of glass and plastic for the global pharma & healthcare industry. Our wide product spectrum ranges from pharma-ceutical vials to complex drug delivery systems, such as syringe systems, insulin pens and inhalers, for safe dosage and appli-cation. Together with our partners we develop solutions which set standards and have role-model status throughout their respective business sectors.

Our Group of companies achieves in Europe, North and South America and Asia sales of about EUR 1 billion and employs around 9,500 people. Through top-class technologies, convincing innovations and targeted invest-ments we are systematically expanding our strong market position.

    Group Key Figures (IFRS; Financial Year end November 30)

    in EUR million              Q2 2010 Q2 2009 Change % FY 2009
    Revenues                     268.8   264.4    +1.7   1,000.2
      Group revenues excluding   268.8   251.6    +6.8     970.8

      Technical Plastics(1)                       +5.6(5)
    Adjusted EBITDA(2)            56.3    47.5   +18.5     185.9
      in % of revenues            20.9    18.0              18.6
    Adjusted EBITDA(2) excluding  56.3    47.5   +18.5     186.2
    Technical Plastics
      in % of revenues            20.9    18.9              19.2
    Profit from operations
    (EBIT)                        24.8    11.8    >100      60.5
    Net income                    11.2     0.9    >100       7.0
    Adjusted net income(3)        17.9    14.3   +25.2      45.2
    Earnings per share in EUR     0.38    0.02    >100      0.18
    Adjusted earnings per
    Share(4) in EUR               0.59    0.44   +34.1      1.34
    Equity ratio in %             36.0    34.0              35.8
    Net Financial Debt           408.7   451.1    -9.4     373.3
    Capital expenditure           13.6    20.4   -33.3      86.4

1 The Technical Plastic Systems segment was sold with effect from July 1, 2009.

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 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.

    4 Adjusted net income after minorities divided by 31.4m shares.
    5 Revenue growth rate at constant exchange rates.

    Media contact
    Jens Kurten
    Director Corporate Communication & Marketing
    Telefon +49-211-6181-250
    Telefax +49-211-6181-241
    E-Mail [email protected]

    Investor Relations contact
    Anke Linnartz
    Director Investor Relations
    Telefon +49-211-6181-314
    Telefax +49-211-6181-121
    E-Mail [email protected]

SOURCE Gerresheimer AG