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REFILE-UPDATE 2-Getinge hopes to spin off PPAC division this year after Q3 profit dives
18. Oktober 2017 / 11:58 / vor einem Monat

REFILE-UPDATE 2-Getinge hopes to spin off PPAC division this year after Q3 profit dives

(Adds full name of CEO in 4th bullet point)

STOCKHOLM, Oct 18 (Reuters) - Medical technology firm Getinge reported on Wednesday quarterly core profits below expectations, sending its shares down, and said it now hoped to spin off and list its smallest division by year-end.

* Profit before interest, tax, amortisation and acquisition, restructuring and integration costs fell 32 pct yr/yr to 659 mln SEK ($81 mln) vs Reuters’ poll forecast 904 mln

* Sweden’s Getinge said a 3 pct sales drop and higher operating expenses and other costs negatively affected profits

* New CEO Mattias Perjos to Reuters: costs were related primarily to the spin-off preparations, secondly to production quality control improvements required by U.S. authorities and thirdly to growing Getinge’s sales force after it was slashed too much in 2016

* Order intake increased slightly more than expected, by 2 pct to 7.3 bln SEK vs a forecast ​7.2 bln

* Getinge stood by a forecast from January for slightly positive organic sales growth in 2017

* Getinge said it plans to spin off and list its Patient & Post-Acute Care division by year-end, depending on approval by owners at an extraordinary meeting, the time for which had not been decided

* It has earlier said it aimed to list PPAC in Q1 2018 at the latest

* CEO Perjos to Reuters: Costs related to the planned spin-off will land at the high end of a previously guided 400-500 mln SEK range, with a large share of this booked in Q3

* CEO Perjos to Reuters: will present new financial targets for spun-off PPAC and remaining Getinge in connection with a strategy update mid-November

* The past couple of years have been turbulent for Getinge with several forecast cuts, profit misses, management changes and authority probes, and in September the firm raised 4.3 bln SEK from owners through a rights issue

* Getinge said: “The remainder of 2017 will be challenging, partly because the fourth quarter is our most important quarter in terms of sales and profitability, and partly because we have large-scale projects to complete before the start of 2018”

* Getinge’s shares fell 5.5 pct at 1308 GMT, reducing a YTD rise to 2.9 pct. The STOXX Europe 600 Health Care Index is up 6.4 pct YTD (Reporting By Anna Ringstrom; editing by Niklas Pollard and Terje Solsvik)

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