SORIN GROUP REPORTS SECOND QUARTER 2012 RESULTS
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Sorin Group expects revenues of €145-150 million. The Company estimates that the product segments impacted by the earthquakes would have generated, under normal conditions, additional revenues in the region of €40-45 million.
Sorin Group confirms its previous outlook:
Therefore the Company is confident with the lower end of the previously communicated €90-100 million range of negative impact of the earthquakes on 2012 revenues.
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Free cash flow: net profit + depreciation, amortization and writedowns ± ∆ working capital – investments. This account is before the impact of special items
See press release dated June 28, 2012
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At a meeting held today and chaired by Rosario Bifulco, Sorin S.p.A. Board of Directors approved the results for the first half of 2012. In this occasion, the Board of Directors expressed his thanks to all employees, suppliers and related parties of the Mirandola area for the extraordinary commitment in addressing the earthquake emergency and in restoring production in a very short time frame.
“The second quarter 2012 has certainly proven to be one of the most challenging but also one of the most active quarters for the Company. The earthquakes in Emilia-Romagna had a significant impact on our Cardiopulmonary manufacturing site, but thanks to the outstanding commitment and extensive repair efforts of all our employees in the Mirandola area together with the strong leadership of the Cardiopulmonary management team, we are confident to fully restore our operations by the beginning of September. On the M&A front, the closing of two business development initiatives announced in July – the acquisition of CalMed and the investment in Cardiosolutions – is a further step forward in our long-term growth strategy,” stated Sorin's Chief Executive Officer André-Michel Ballester, “The second quarter was also characterized by positive signs in the other two Business Units: a gradual improvement in our Cardiac Rhythm Management business and the increasing contribution from Perceval in Heart Valves”.
In the Sorin Group reported of The Company estimates that the negative impact on revenues related to the earthquakes amounted to approximately €17 million. Revenues as reported decreased by -1.9%. Favourable foreign currency translations versus the second quarter 2011 sales amounted to approximately €9 million.
(*) For details, see the table “Consolidated revenues by Business Units”
At comparable exchange rates and perimeter
(*) For details, see the table “Consolidated revenues by Business Units”
At comparable exchange rates and perimeter
(*)For details, see the table “Consolidated revenues by Business Units”
was €116.3 million, or 61.8% of revenues, compared to 59.6% in the second quarter of 2011. The improvement is attributable to a more favourable product mix, ongoing manufacturing cost reduction programs and positive impact of foreign-exchange rates.
expenses totalled €78.7 million compared to €70.7 million in the second quarter 2011, corresponding to an 11.2% increase. At constant foreign-exchange rates, these expenses increased by 2.0% or by €1.4 million in absolute terms. In order to preserve the Company’s ability to execute its medium and long-term growth plan, Sorin Group decided not to reduce its sales and marketing activities in the Cardiopulmonary Business Unit, despite the temporary interruption of production following the earthquakes.
expenses rose by 3.8% to €18.7 million, 9.9% of revenues (9.4% in the second quarter of 2011).
was €29.5 million (15.7% of revenues) compared to €35.1 million (18.3% of revenues) reported in the second quarter of 2011. The decrease reflects the impact of lower revenues in the Cardiopulmonary segments affected by the earthquakes, while expenses in the Business Unit were not reduced accordingly over the period of reference. The Company estimates that the earthquakes had a negative impact on EBITDA equivalent to approximately €6.5 million.
was €11.0 million (5.9% of revenues) compared to the €24.9 million (13.0% of revenues) posted in the second quarter of 2011. EBIT before special items was €18.9 million, or 10.1% of revenues (13.4% of revenues in the second quarter of 2011). Special items include non-recurring charges related to the earthquakes in the amount of €6.4 million, such as inventory write-off and initial costs for demolition. The remaining non-recurring costs are mainly attributable to business development initiatives.
were €6.6 million compared to €0.8 million in the second quarter of 2011. The second quarter of 2012 incorporates a financial charge of €4.4 million for the unwinding of an over-hedging position caused by a lower revenue level following the earthquakes (while this figure was positive for €1.7 million in the second quarter 2011). On a run-rate basis interest expenses decreased by €0.5 million compared to the second quarter of 2011, mostly as a result of lower average debt.
amounted to €7.4 million, or 3.9% of revenues, compared to €17.1 million, or 8.9% of revenues, in the second quarter of 2011. The Company estimates that the negative impact on net profit related to the earthquakes amounted to approximately €11 million. These results do not include any recovery from the insurance policy program.
was €16.4 million, or 8.7% of revenues, compared to €17.6 million, or 9.2% of revenues, in the second quarter of 2011. This figure does not reflect any adjustment for the lower revenues realized following the earthquakes in Emilia-Romagna.
as of June 30, 2012 was down to €80.9 million, compared to €101.7 million as of June 30, 2011 (€102.3 million as of March 31, 2012). Net debt was reduced by €20.8 million in the last 12 months ended June 30, 2012, mainly due to improvement in working capital and growing profitability, partially offset by €47.1 million of special items, including business development initiatives(see attached table for details).
In the second quarter of 2012, the Company's amounted to €37.4 million, mainly thanks to an improvement in working capital for faster collection of receivables and better inventory rotation. Sorin Group estimates that the negative cash impact related to the earthquakes amounted to around €3 million.
With regards to relevant events following the closing of the second quarter, the Company received a partial recovery payment from the insurance in relation to the earthquakes of €10 million.
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Adjusted net profit: net profit before the after-tax treatment of non-recurring income and expenses (special items).
Free cash flow: net profit + depreciation, amortization and writedowns ± ∆ working capital – investments. This account is before the impact of special items
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In the , Sorin Group posted of €379.9 million, reporting a 1.5% increase over the same period last year.
rose by 4.0% to €231.4 million equal to 60.9% of revenues, compared to 59.5% for the first half of 2011. The improvement is due to a more favourable product mix, ongoing manufacturing cost reduction programs and positive impact of foreign-exchange rates.
(SG&A) expenses were €157.7 million compared to €144.5 million for the first half of 2011. Excluding the impact of foreign-exchange rates, SG&A rose by 2.2% or by €3.1 million in absolute terms.
expenses grew 6.1% to € 37.3 million, or 9.8% of revenues (9.4% in the first half of 2011).
was €57.8 million (15.2% of revenues) compared to €62.6 million (16.7% of revenues) for the first half of 2011.
was €27.8 million (7.3% of revenues) compared to €45.9 million (12.3% of revenues) for the first half of 2011. unfavorable for €8.7 million, amounted to €36.5 million, or 9.6% of revenues (11.5% of revenues in the first half of 2011).
were €8.8 million compared to €3.6 million for the first half of 2011, mainly reflecting the unwinding of an over-hedging position caused by a lower revenue level following the earthquakes.
was €18.0 million, or 4.7% of revenues, compared to €29.9 million, or 8.0% of revenues, for the first half of 2011.
was €27.6 million, or 7.3% of revenues, compared to €27.8 million, or 7.4 % of revenues, in the first half of 2011.
For the third quarter of 2012, Sorin Group expects revenues of €145-150 million. The Company estimates that the product segments impacted by the earthquakes would have generated, under normal conditions, additional revenues in the region of €40-45 million.
For full-year 2012, Sorin Group confirms its previous outlook:
Therefore the Company is confident with the lower end of the previously communicated €90-100 million range of negative impact of the earthquakes on 2012 revenues.
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Adjusted net profit: net profit before the after-tax treatment of non-recurring income and expenses (special items). The figure does not reflect any adjustment for the lower revenues realized following the earthquakes in Emilia-Romagna.
See press release dated June 28, 2012
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Today’s Board of Directors also approved the changes to Sorin S.p.A. By Laws pursuant to the recently introduced Law n. 120 of July 12, 2011 which concerns the equality of access to the administrative and controlling bodies of companies listed in regulated markets.
Sorin Group () (MIL:SRN) is a global company and a leader in the treatment of cardiovascular diseases. The company develops, manufactures and markets medical technologies and innovative therapies for cardiac surgery and for the treatment of cardiac rhythm disorders. With 3,750 employees worldwide, the Group focuses on three major therapeutic areas: cardiopulmonary bypass (extra-corporeal circulation and autotransfusion systems), cardiac rhythm management, and repair and substitution of heart valves. Each year, over one million patients are treated with the devices of Sorin Group in more than 80 countries.