Laboratory instruments business contributed the largest share of earnings, and business with industrial weighing and control technology also increased its profitability.
Sartorius reports that it substantially increased its earnings in 2005 yet again.
Based on its preliminary figures, Sartorius boosted earnings before interest and taxes (Ebit) by 34.3% to 43.7 million euros from 32.5 million euros a year ago.
Thus, the Ebit margin rose to 9.0%, up from 7.0% the previous year.
At 62.5 million euros, earnings before interest, taxes, depreciation and amortisation (Ebitda) were 14.1% higher than the year-earlier figure of 54.8 million euros.
Net profit was 22.1 million euros, up from 15.2 million euros in 2004.
Earnings per share climbed from 0.89 euro to 1.30 euros.
Decisive factors for this growth in earnings were the increase in sales revenue, a beneficial enhanced product mix, and a cost base that had improved in the past years.
In addition, as goodwill amortisation ceased to be applied as it was eliminated by the IFRS, this had a positive impact on earnings.
However, this was compensated by nearly the same amount of expenses that were incurred for currency hedging transactions and that had a negative impact on earnings.
In the reporting year, consolidated sales revenue was 484.3 million euros, up from 467.6 million euros in 2004.
This corresponds to a gain of 3.6% (currency-adjusted: 3.5%).
The strongest regional impulses for growth were again generated by Asia; within the product segments, the filter business was particularly successful.
Fueled by both divisions, Sartorius considerably increased order intake, posting a gain of 7.7% from 461.6 million euros to 497.0 million euros (currency-adjusted: + 7.7%).
Key balance sheet ratios and financials further improved in the reporting year.
The equity ratio rose from 38.2% to 40.4%.
The company primarily used its net cash flow of 33.0 million euros (previous year: 36.3 million euros), which was significantly positive again, to continue reducing debt.
Net debt fell from 78.9 million euros to 60.7 million euros.
The Biotechnology Division increased its sales revenue by 4.3% to 249.8 million euros, up from 239.4 million euros the previous year (currency-adjusted: +4.3%).
By boosting Ebit 38.7% from 17.5 million euros to 24.3 million euros, the division overproportionately increased its earnings.
The Ebit margin climbed to 9.7%, up from 7.3% a year ago.
Within the division, business with filters for biopharmaceutical applications, in particular, proved to be the engine driving growth and earnings.
As a result, it more than compensated for the decline in sales revenue and earnings in the fermenter and bioreactor business in North America.
Order intake showed a highly positive development across all business areas and regions.
It surged 9.4% to 257.3 million euros from 235.3 million euros a year ago.
The Mechatronics division grew 2.8% and earned 234.5 million euros in sales revenue, up from 228.1 million euros a year earlier.
In constant currencies, the gain in sales revenue was 2.7%.
All business areas and regions covered by this division showed growth; the largest increases in volume were posted for our business with industrial weighing and control technology.
The division significantly boosted its Ebit by 29.1% from 15.0 million euros in 2004 to 19.4 million euros in 2005, and achieved an Ebit margin of 8.3%, up from 6.6% a year ago.
The laboratory instruments business contributed the largest share of earnings as it did a year earlier.
Moreover, business with industrial weighing and control technology, which reported profits for the first time in 2004, also increased its profitability.
Order intake in the Mechatronics division rose substantially by 5.9% from 226.3 million euros to 239.7 million euros.
"In addition to the encouraging increase in earnings in 2005, we have put in place strategic projects with excellent prospects.
"These concern our further expansion in Asia and product innovations, among other things," said Joachim Kreuzburg, CEO of Sartorius.
"In 2006, we will place our entire focus on further improving our profitability and, at the same time, on increasing our investments in growth potential".
For fiscal 2006, the company expects that it will post a gain in sales revenue of over 5% in constant currencies.
It intends to further increase earnings and raise Ebit to approx 10% of sales revenue.
Sartorius will announce the figures of its certified annual financial statements for the year ended 2005 during the annual press conference on March 14, 2006.
