· Order bookings increased to SEK 7,186 M (6,041), equivalent to 9* percent calculated excluding Nucletron.
· Net sales increased to SEK 5,929 M (5,328), equivalent to 5* percent calculated excluding Nucletron.
· Operating result amounted to SEK 967 M (751) before non-recurring items of SEK 107 M (−) (see page 4).
· Net income amounted to SEK 687 M (500). Earnings per share amounted to SEK 7.31 (5.37) before dilution and SEK 7.23 (5.30) after dilution.
· Cash flow from operating activities amounted to SEK 476 M (460). Cash flow after investments was SEK -2,795 M (142), including acquisition effects of SEK -3,167 M (-255).
· On September 15, 2011, Elekta completed the acquisition of Nucletron, world leader in brachytherapy treatment planning and delivery.
· On September 30, 2011, Elekta divested its pathology business, PowerPath®.
The net gain amounted to SEK 183 M.
· The outlook regarding net sales has been changed. For the fiscal year 2011/12, net sales is expected to grow by 16-18 percent in local currency (changed from “net sales is expected to grow by more than 20 percent in local currency”). The outlook for operating profit is unchanged. Operating profit is expected to grow by more than 20 percent in SEK for the fiscal year 2011/12. The acquisition of Nucletron is expected to contribute to this increase by approximately 10 percentage points in both net sales and operating profit.
· The Board of Directors of Elekta has decided, subject to approval by an Extraordinary General Meeting, to pursue an issue of convertible bonds of approximately SEK 1.9 bn with preferential rights for Elekta’s shareholders (see page 8).
* Compared to last fiscal year at unchanged exchange rates.
Table included in attached PDF file
President and CEO comments
I am very pleased with Elekta’s performance during the third quarter. Sales were strong and order bookings rose 11* percent, excluding Nucletron.
In North America, we secured substantial orders from leading hospitals and order bookings rose 14* percent in the first nine months, excluding Nucletron. The trend was strong in the northern regions of Europe and the Middle East, while southern regions of Europe and Latin America experienced a weaker trend. In the Asia Pacific region, the third quarter is generally the weakest in seasonal terms, although we expect that the underlying demand remains strong.
Net sales rose 17* percent during the third quarter, excluding Nucletron. Operating profit was strong and amounted to SEK 623 M during the quarter, before non-recurring items, and the operating margin strengthened to 24 percent, compared with 16 percent in the same period last year.
The integration of Nucletron is proceeding as planned. Nucletron has contributed to net sales with SEK 618 M and to operating profit with SEK 175 M, excluding non-recurring costs, since being consolidated on September 15, 2011. Organic net sales growth in Nucletron amounted to 11 percent during the last twelve months.
Elekta’s operations within magnetoencephalography (MEG) have not fully measured up to its financial objectives, thus leading us to initiate a strategic review. Net sales for MEG amounted to about SEK 74 M for the first nine months with a negative result.
Demand in Elekta’s markets is expected to remain strong and the order backlog is at a record level of more than SEK 10 bn. Based on the scheduled deliveries for the fourth quarter, we reiterate our outlook for the operating profit for the fiscal year 2011/12 of an increase of more than 20 percent in SEK. Currencies are expected to have a negative impact on earnings of about SEK 100 M, including the impact of currency hedging.
The net sales outlook is adjusted from an increase of more than 20 percent to an increase of 16-18 percent in local currency. The adjustment is a result of postponement of deliveries to Latin America, a weaker trend in southern Europe and lower-than-expected sales in the MEG area. The acquisition of Nucletron is expected to contribute with about 10 percentage points to the increase in net sales and operating profit.
Elekta sees significant potential for further growth both through expansion in emerging markets and through improved market positions in established markets. To strengthen Elekta’s financial and strategic flexibility and increase the diversification of financing instruments and lower reliance on bank debt, the Board of Directors of Elekta has decided to pursue an issue of convertible bonds, with preferential rights for Elekta’s shareholders, of approximately SEK 1.9 bn. The decision is subject to approval by an Extraordinary General Meeting.
We believe that the recent debt crisis has only had a marginal impact on market conditions in general. Life-saving treatment such as cancer care will remain a prioritized area for healthcare investments and for care providers.
President and CEO
*Based on unchanged exchange rates
Elekta’s nine-month interim report conference call
Elekta will host a telephone conference 10.00-11.00 CET on March 5, 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 911604. Swedish dial-in number: +46 (0)8 5052 0110, UK dial-in number: +44 (0)20 7162 0077, US dial-in number: + 1 334 323 6201.
The telephone conference will also be broadcasted over the Internet (listen only). Please use the link http://webeventservices.reg.meeting-stream.com/58403_elekta/