· Order bookings increased 2* percent to SEK 1,700 M (1,889).
· Net sales was unchanged* on SEK 1,428 M (1,627).
· Operating result amounted to SEK 92 M (153).
· Net income amounted to SEK 46 M (103).
· Earnings per share amounted to SEK 0.50 (1.11) before dilution and SEK 0.50 (1.09) after dilution.
· Cash flow from operating activities amounted to SEK 159 M (-30). Cash flow after investments was SEK 108 M (-285), including acquisition effects of SEK -32 M (-240).
· Elekta has signed a definitive agreement to acquire Nucletron, the world leader in brachytherapy treatment planning and delivery. The transaction remains subject to regulatory approval and is set for completion in the near future.
· For fiscal year 2011/12, net sales is expected to grow by more than 10 percent in local currency. Operating profit in SEK is expected to grow by more than 10 percent. Currency is estimated to have a negative effect of about SEK 125 M including hedging effects on earnings for fiscal year 2011/12.
Table included in attached PDF file
* Compared to last fiscal year at unchanged exchange rates.
President and CEO comments
I am pleased to report that the first three months of the fiscal year were in line with our expectations, and I am confident of our performance for the rest of the fiscal year.
All regions performed in line with our expectations as far as order bookings were concerned. In region Europe, Middle East and Africa order bookings were lower compared to the corresponding period of last year. However, it is important to keep in mind that this region in particular experienced very strong growth during the first quarter of the previous fiscal year due to a large order in Russia. Activity in the region remained robust.
Order bookings continued to rise rapidly in region Asia Pacific. In Japan, reconstruction work following the earthquake earlier this year, has been the main priority, causing some delays in investment decisions in cancer treatments. The positive trend in demand continued in North and South America with particularly good development in the United States.
Our assessment is that recent financial uncertainty has not affected market conditions. Lifesaving treatment like cancer care will remain a priority area for healthcare investments and for care providers around the world. Nevertheless we are continually monitoring international developments, and we have the preparedness and flexibility to adapt to changing circumstances.
Elekta is a leader in most growth markets, which now account for approximately one-third of net sales. We expect the pace of our geographical expansion to accelerate over the next few years, providing more people with access to cancer care. Moreover, we anticipate that our installed base will continue to broaden in both established and emerging markets.
The Nucletron acquisition, which is set for completion in the near future, further improves our growth prospects. An integrated offering ensures a more complete range of cancer treatment options. Our combination of brachytherapy and external radiation therapy reinforces our leading treatment methods for patients everywhere.
Net sales for the first three months, which also is the weakest period of the fiscal year, was flat in local currency compared to the corresponding period of last fiscal year. This has led to a weaker operating profit. However, we expect a normal seasonal trend for the fiscal year, with a significantly higher operating profit in the second half of the year compared to the first half.
Elekta’s order backlog is on a record level and is another strong indication of the growth prospects for the current fiscal year.
Our outlook for fiscal year 2011/12 is unchanged. For the fiscal year 2011/12, Elekta’s net sales is expected to grow by more than 10 percent in local currency. Operating profit in SEK is expected to grow by more than 10 percent. Currency is estimated to have a negative effect of about SEK 125 M including hedging effects on earnings for fiscal year 2011/12.
President and CEO