FRANKFURT (Dow Jones )- The increased demand from the pharmaceutical industry as well as recovery trends in cosmetics and laboratory glass have increased the confidence of Gerresheimer AG for the full year. (Photo : Gerresheimer )
The manufacturer of special containers for the pharmaceutical and cosmetic industry does the sales outlook for the full year and the chances for an improvement in operating margin is now more optimistic than before. Excluding the divested Technical Plastic Systems , the company expects 2010 to now , with sales up four percent from three . So far, Gerresheimer had set a revenue growth of two to four percent in prospect.
The operating margin ( EBITDA margin) are now rising to 19.5 % to 20 %. So far, 19.5 % had been forecast , down from 19.2% last year. A further adjustment of the forecast upward , despite the improved business outlook is not currently scheduled , CEO Uwe Röhrhoff said during a conference call. The company had a number of areas where the business cycle was not to estimate clean.
In the second quarter of the current 2009/10 financial year to November, sales fell and the better earnings figures of the Düsseldorf – MDAX group than analysts expected. Revenue climbed 1.7% to 268.8 million EUR. Analysts surveyed by Dow Jones Newswires had on the other hand because of the sale of engineering plastics expected a slight decline to 262 million EUR. Adjusted EBITDA increased by 18.5 % to EUR 56.3 million , had the experts here estimated 52 million EUR. The adjusted EBITDA margin increased by 2.9 percentage points to 20.9%. The consolidated net income in the second quarter to EUR 11.2 million after EUR 0.9 million in the prior year period.
"Our business has developed in the second quarter very encouraging. The demand for our products in the pharmaceutical industry has grown, but also the fields of cosmetics and laboratory glass have improved recently , "said CEO Röhrhoff .
The core business of pharmaceutical clients , which makes up three quarters of sales for Gerresheimer grows , solid , said the manager. Here, the group achieved significantly higher sales in the second quarter in the RTF syringes. Strong had risen in the North American and Chinese markets also , sales of vials and ampoules, the company explained . High growth rates have also shown the parts sales in the Plastic Systems Division , driven by the pen systems and the area Plastic Packaging.
The much smaller areas of cosmetic and laboratory glass, which had in previous quarters, suffered more from the economic crisis as the pharmaceutical business would not have improved in the second quarter , said Röhrhoff . In the laboratory glass sector were in previous quarters, the levels at distributors and end users has been significantly reduced. Röhrhoff but warned against exaggerated expectations of business in the division. The business had an extremely short lead- in orders, as these are mostly stock products acting and not customer-specific products. It is not therefore currently unclear whether trends continue to recover , he said.
For the full year, the company expects further sales growth in the pharmaceuticals, also supported by the Emerging Markets. There Gerresheimer sees clear growth opportunity as a result of the expansion of health care in the emerging markets and the growing importance of generic products. Market developments in the fields of cosmetics and konjunkturnäheren Life Science Research ( laboratory glassware ) was first to assess , despite signs of recovery , however difficult.
In the cosmetics sector , which is heavily dependent on consumer confidence , Gerresheimer expects more with a gradual recovery in demand and with a quick upward movement. In the life science research remains to be seen in what form the financial and economic crisis would be on the budget and thus on the ordering behavior of customers, the company explained . Gerresheimer expects , however, that inventory reductions are part of the distributors and consumers continue to decline .
After acquisition opportunities , particularly in North America and emerging markets, the company provides for a two-year break from this year to return . " Whether this can be realized in this year can say never, " Chief Financial Officer Hans -Jürgen Wiecha said during the conference call. But there was a number of occasions. In aiming for the company, as previously announced acquisitions in the sales volume of 30 million to 100 million EUR. It constitutes significant regional differences often family businesses with interesting technology , said the manager.
For investments , the company plans a more 75 million to 80 million EUR in 2010. Today we have no reason to assume that we will increase investment , "said Röhrhoff . The company had enough money for planned projects in the second half.
Analysts at UniCredit said in initial assessments of strong
Zweitquartalszahlen for Gerresheimer . They were driven , among other things from the good business with pharmaceutical clients and customers from the cosmetics industry. The analysts confirmed its buy recommendation . The share stood at 11.42 clock with 1.3 % in the negative and was quoted at 28.12 EUR and the MDAX yielded a total of 0.4%.
Website: www . gerresheimer.com
By Heide Oberhauser -Aslan – , Dow Jones Newswires
+49 (0)69 29725 113, heide.oberhauser @ dowjones.com
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