· Order bookings increased 17* percent to SEK 5,224 M (4,402).
· Net sales increased 22* percent to SEK 4,180 M (3,364).
· Operating result amounted to SEK 480 M (344) before non-recurring items of SEK -17 M (133).
· Net income amounted to SEK 273 M (295). Earnings per share amounted to SEK 0.70 (0.78) before dilution and SEK 0.70 (0.77) after dilution. In September a 4:1 share split was conducted. All data per share is changed retroactively.
· Cash flow after investments was SEK 223 M (182).
· The outlook remains unchanged. For the 2012/13 fiscal year, net sales is expected to grow by more than 15 percent in local currency. Operating profit in SEK is expected to grow by more than 15 percent. Currency is estimated to have a neutral impact including hedging effects on operating profit.
*Compared to last fiscal year based on unchanged exchange rates.
President and CEO comments
I am pleased with Elekta’s performance in the second quarter, which has shown continued good demand, strong deliveries and improved cash flow. Order bookings continued to grow and increased by 12* percent for the first six months. A structural expansion of cancer care is continuing in many emerging markets and by establishing operations at an early stage in these areas, Elekta has a market-leading position. Demand is also generally favorable in established markets where Elekta continues to provide means for high quality and cost-efficient cancer care for an increasing number of patients.
The success of Elekta’s new Agility beam-shaping solution continues and demand for the solution is strong. More than 100 systems have been delivered and it is gratifying that a growing number of patients now have access to treatment with Agility. The unique combination of exceptional resolution, speed and low radiation leakage allows our users to adapt each treatment without compromising conformity.
Deliveries were strong during the second quarter and for the first six months net sales increased by 22** percent. Operating result increased to SEK 480 M (344) before non-recurring items. The decline in reported net income is mainly an effect of last year’s positive non-recurring items.
Our activities aimed at strengthening cash flow are yielding results. Cash flow after investments amounted to SEK 398 M (42) for the quarter. Working capital declined by 18 percent compared with the end of the preceding fiscal year. The cash conversion rate amounted to 51 percent for the first six months. Our aim of achieving a cash conversion rate in excess of 70 percent remains.
The need for cancer care is growing throughout the world and Elekta is positioned better than ever to help more patients live a better life thanks to high-quality and cost-efficient cancer care. Elekta’s growth strategy is continuing and the use of radiation therapy has the potential to increase substantially in most markets in coming years. Our ongoing project aimed at facilitating treatment combined with advanced imaging through magnetic resonance (MR) is proceeding according to plan.
We foresee significant potential for continued growth and believe that market demand will remain favorable. However, in some markets a weak economic development and high levels of public debt might mean less availability of financing and reduced future health care spending by the governments.
The outlook remains unchanged. We anticipate that net sales for full-year 2012/13 will increase by more than 15 percent in local currency. Operating profit in SEK is expected to increase by more than 15 percent. Exchange rate effects, including hedging effects, are estimated to have a neutral impact on operating profit.
President and CEO
*Compared to last fiscal year based on unchanged exchange rates and for comparable units.
**Compared to last fiscal year based on unchanged exchange rates.
Elekta will host a telephone conference 10:00 CET on December 4, with President and CEO Tomas Puusepp and CFO Håkan Bergström.
To take part in the conference call, please dial in about 5-10 minutes in advance and use the access code 925300. 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 the link: http://webeventservices.reg.meeting-stream.com/71577_elekta