Gerresheimer Starts the Year Successfully in 2008
- CEO Dr. Axel Herberg: "We Have Again Substantially Increased our Salesand Earnings, and Results are Fully in Line With our Forecasts."
Gerresheimer AG has started the financial year 2008 with an outstandingfirst quarter. Sales grew by 18.2% compared with the prior year period toEUR239.1m (2007: EUR202.3m). Excluding exchange-rate effects, sales actuallyrose by 21.8%. The operating result (Adjusted EBITDA) also improved again,increasing by 20.4% to EUR43.0m (prior year period: EUR35.7m). The AdjustedEBITDA margin therefore reached 18.0% in the first quarter (December 2007 -February 2008), which is seasonally the weakest quarter over the course ofthe year. The adjusted net income, which shows the operating strength of thecompany, almost quadrupled to EUR9.9m (prior year period: EUR2.6m). The netincome improved by EUR6.5m to EUR2.5m (prior year period: EUR-4.0m). Overall,Gerresheimer profited primarily from the high level of demand in the pharma &life science segment, where the company achieves three quarters of its totalsales.
"The first quarter was extremely successful for us. We improved ourresults in all divisions and are therefore well ahead of the overall marketdevelopment. Gerresheimer is outstandingly well positioned and we are well onthe way to achieving our ambitious targets for the current financial year,"says Dr. Axel Herberg, CEO of Gerresheimer AG.
Successful development of all divisions
All the divisions contributed to the positive development of the Group.In addition to the sustained high level of demand for Gerresheimer products,this was attributable to the successful integration of the acquisitions made.
In the first quarter of 2008, sales in the Tubular Glass Divisionincreased by 9.1%, or 14.6% on a like-for-like exchange-rate basis, toEUR65.7m (prior year period: EUR60.2m). Adjusted EBITDA totalled EUR15.7m(prior year period: EUR15.0m). The main growth generator in this division wasthe 68% increase in sales of RTF (Ready-to-Fill) syringes. To meet thissustained high level of demand, Gerresheimer plans to install a third RTFproduction line at the start of 2009. Further growth contributors were therise in sales of pharmaceutical vials in the American market and growth inChina.
Sales by the Plastic Systems Division increased by 37.1% to EUR77.2m(prior year period: EUR56.3m). Adjusted EBITDA actually rose by 45.4% toEUR14.1m (prior year period: EUR9.7m). This division profited from the risein demand for inhalers and products for the segment of diabetes care. Also inthis division, integration of the companies EDP (today Gerresheimer ZaragozaS.A.) and Allplas (today Gerresheimer Plasticos Sao Paulo Ltda.), which wereacquired at the start of 2008, is progressing well.
With sales growth of 5.0 % (7.8% on a like-for-like exchange-rate basis)the Moulded Glass Division considerably exceeded the market average. AdjustedEBITDA on the basis of sales of EUR77.6m (prior year period: EUR73.9m)improved by 20.3% to EUR16.0m. Particular contributions were made by thepharmaceutical vials business in the USA and Europe and increased sales ofcosmetics products.
The Life Science Research Division achieved a sales increase of 81.7 % toEUR21.8m (prior year period: EUR12.0m) following the expansion of businessoperations after establishment of the joint venture with Thermo Fisher. Theoperating result improved to EUR2.4m (prior year period: EUR1.3m).
Gerresheimer still on a successful course
"We will continue our successful development in 2008. We havesubstantially improved the results in all divisions and see this as fullconfirmation of our strategy. With its products, Gerresheimer is a reliablepartner for the pharma & life science industry, which is our core business.We benefit from the growth in this sector and will further expand our goodposition in
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