Elekta announces preliminary results for third quarter and revised outlook for fiscal year 2013/14

STOCKHOLM, February 21 – Elekta's performance in the third quarter was mixed with strong order bookings but EBITA was below expectations.

EBITA for the third quarter 2013/14 was weak and amounted to SEK 340 (454) M and EBIT amounted to SEK 260 (393) M, which materially deviates from Elekta’s expectations. The weaker result was primarily related to:

  • Lower than expected delivery volumes of Leksell Gamma Knife®
  • Substantial negative currency effects

Strong order bookings
Order bookings amounted to SEK 3,224 (2,856) M in the third quarter, an increase of 15* percent compared with last year.

Net sales
Net sales amounted to SEK 2,385 (2,428) M in the third quarter, an increase of 1* percent compared with last year. The third quarter was significantly impacted by lower than expected delivery volumes of Leksell Gamma Knife. In addition, weaker currencies, particularly in some emerging markets, have affected purchasing power and volumes.

Adjusted outlook for the year
Due to lower-than-expected delivery volumes of Leksell Gamma Knife and delays in expected deliveries to emerging markets, the outlook for the full year has been revised.

  • In fiscal year 2013/14, net sales is expected to grow by approximately 7 percent in local currency compared with last year.
  • EBITA is expected to grow by approximately 3 percent in local currency compared with last year. Exchange rate movements are expected to have a negative impact of approximately 5 percentage points on EBITA growth.

The prior outlook, published in the Q2 report, expected net sales to grow by more than 10 percent in local currency. EBITA was expected to grow by approximately 10 percent in local currency. Exchange rate movements were expected to have a negative impact of approximately 5 percentage points on EBITA growth.

Cash flow
Cash flow from operating activities was SEK 153 (258) M and cash flow after continuous investments was SEK -27 (112) M in the third quarter. Compared with the second quarter, inventory increased by almost SEK 250 M ahead of planned deliveries in the fourth quarter.

President and CEO comments
“Overall market development continues to be good and Elekta’s order bookings grew 15* percent in the third quarter. I am very pleased with our order booking trend, however, I am not satisfied with our Q3 results and particularly not with our Leksell Gamma Knife business. We have analyzed the prospects and initiated a number of corrective actions to ensure improved performance. We remain confident that Leksell Gamma Knife will be back on track. However, Elekta is affected by the current currency volatility and developments in certain emerging markets. Our long-term strategy and objectives remain unchanged as does the continued growing need and demand for Elekta’s superior clinical solutions,” says Tomas Puusepp, President and CEO.

* Compared with last fiscal year, based on constant exchange rates.

Elekta will issue its full Q3 report for 2013/14 on February 27 at 07:30 CET.

Conference call
Elekta will host a telephone conference at 10:00–10:30 CET on February 21, with Tomas Puusepp, President and CEO, and Håkan Bergström, CFO.

To take part in the conference call, please dial in about 5-10 minutes in advance and use the access code 942062.

  • Swedish dial-in number: +46 (0)8 5052 0110
  • UK dial-in number: +44 (0)20 7162 0077
  • US dial-in number: + 1 877 491 0064.

The telephone conference will also be broadcasted over the internet (listen only). Please use this link: http://webeventservices.reg.meeting-stream.com/84991_elekta/

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The above information is such that Elekta AB (publ) shall make public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 07:40 CET on February 21, 2014.

About Elekta

Elekta is a human care company pioneering significant innovations and clinical solutions for treating cancer and brain disorders. The company develops sophisticated, state-of-the-art tools and treatment planning systems for radiation therapy, radiosurgery and brachytherapy, as well as workflow enhancing software systems across the spectrum of cancer care. Stretching the boundaries of science and technology, providing intelligent and resource-efficient solutions that offer confidence to both health care providers and patients, Elekta aims to improve, prolong and even save patient lives.Today, Elekta solutions in oncology and neurosurgery are used in over 6,000 hospitals worldwide. Elekta employs around 3,500 employees globally. The corporate headquarters is located in Stockholm, Sweden, and the company is listed on the Nordic Exchange under the ticker STO:EKTAB. Website: www.elekta.com.

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For further information, please contact

Håkan Bergström, CFO, Elekta AB
Tel: +46 8 587 25 547,
E-mail: hakan.bergstrom@elekta.com
Time zone: CET: Central European Time

Gert van Santen, Group Vice President Corporate Communications, Elekta AB
Tel: +31 653 561 242,
E-mail: gert.vansanten@elekta.com
Time zone: CET: Central European Time

Johan Andersson, Director, Investor Relations, Elekta AB
Tel: +46 702 100 451,
E-mail: johan.andersson@elekta.com
Time zone: CET: Central European Time

This press release includes forward-looking statements including, but not limited to, statements relating to operational and financial performance, market conditions, and other similar matters. These forward-looking statements are based on current expectations about future events. Although the expectations described in these statements are assumed to be reasonable, there is no guarantee that such forward-looking statements will materialize or are accurate. Since these statements involve assumptions and estimates that are subject to risks and uncertainties, results could differ materially from those set out in the statement. Elekta undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law or stock exchange regulations.