Sartorius, a process and laboratory technology provider worldwide, grew considerably in the first three months of fiscal 2006 and posted significant gains in earnings
The positive sales revenue and earnings development was supported by both divisions of the company and by all regions.
In the first quarter of 2006, group sales revenue rose 15.1% to 128.6million euros from 111.8million euros a year ago.
Currency-adjusted sales revenue was up 12.5%.
The highest growth momentum came from North America; within the product segments, business with filters for biopharmaceutical applications showed particularly successful development as in the previous quarters.
At 132.7million euros, order intake was also up 15.8% (currency-adjusted, up 12.8%), and therefore substantially higher than the year-earlier quarterly figure of 114.6million euros.
Sartorius boosted its earnings before interest and taxes (Ebit) 80.2% to 11.7million euros from 6.5million euros posted for the first quarter of the previous year.
Thus, the first-quarter Ebit margin is at 9.1%, up from 5.8% a year ago.
Earnings before interest, taxes, depreciation and amortization (Ebitda) soared 48.9% to 16.4million euros from 11.0million euros a year earlier.
Net profit for the period at 6.3million euros was also substantially higher than the previous year's figure of 2.2million euros.
Earnings per share were 0.37euro, up from 0.13euro in the first quarter of 2005 (+184.6%).
The company primarily used its positive net cash flow of 3.1million euros (Q1 of 2005: 8.1million euros) to further reduce debt.
Net debt dropped 1.8million euros to 58.9million euros between the reporting periods of December 31, 2005, and March 31, 2006.
Business Development of the Divisions.
Especially because of the strong growth in its filter business, the Biotechnology Division increased first-quarter sales revenue 15.8% to 68.2million euros (currency-adjusted, up 13.2%).
The division's order intake grew even more strongly and was up 23.4%; its currency-adjusted order intake climbed 20.8%.
This positive development can essentially be attributed to the sustained strong gains in its process filter business, growing dynamics in its laboratory filter business and a stable order situation in its project business with fermenters and bioreactors.
At 7.3million euros, the division's Ebit was considerably higher than the year-earlier quarterly figure of 4.3 million euros.
Its Ebit margin improved from 7.2% to 10.7%.
Demand for products from the Mechatronics Division also showed highly positive development in the first three months of 2006.
Buoyed by the high order backlog at the end of fiscal 2005, the division's first-quarter sales revenue in 2006 rose 14.3% to 60.4million euros (currency-adjusted, up 11.7%).
Up 8.3%, order intake for the division was also substantially higher than that of the year-earlier period.
The Mechatronics Division further increased earnings and raised its Ebit from 2.2 million euros to 4.4 million euros.
Its Ebit margin climbed from 4.2% to 7.3%.
Outlook.
The Executive Board assessed first-quarter business development as highly positive.
In relation to the full year, the Executive Board considers the high increase in sales revenue to be above-average given the relatively moderate development of the last quarter in 2005.
The Board further expects to achieve sales growth of more than five percent in constant currencies and to increase earnings before interest and taxes (Ebit) to approximately ten percent of sales revenue.
