Sartorius Group grew considerably in 2006 according to the preliminary figures, and again boosted its profitability overproportionately
In the reporting year, Sartorius Group sales revenue rose to euro521.1million from euro484.3million a year earlier, thus surpassing the mark of euro500million for the first time.
The growth rate in sales revenue was 7.6percent (currency-adjusted: up 8.1percent) and slightly exceeded the forecasts of the group's management, which had expected around seven percent growth for 2006.
This strong development of sales revenue is based particularly on the successes of the biotechnology division with its filters and additional disposables for biopharmaceutical applications.
Regionally considered, the technology group achieved the highest growth at 8.3percent in constant currencies in Europe.
In North America and Asia, highly dynamic gains were posted for most business areas, which were masked by declines in the volatile project business with fermenters and bioreactors.
Accordingly, the growth rates in North America and Asia at 5.9percent and 6.4percent, respectively, were slightly below growth in Europe.
For the future, the company expects to continue achieving the highest growth rates outside Europe.
Group order intake also climbed from euro497.0million in 2005 to euro523.9million (up 5.4percent; currency-adjusted up 5.9percent).
Earnings soared even higher than sales revenue.
According to its preliminary figures, Sartorius boosted its earnings before interest and taxes (Ebit) 19.2percent to euro52.1million from euro43.7million a year ago.
Thus, its Ebit margin rose by one percentage point from 9.0percent in 2005 to 10.0percent, precisely hitting the target the company had aimed for in fiscal 2006.
At euro71.2million, earnings before interest, taxes, depreciation and amortisation (Ebitda) were 14.6percent above the year-earlier figure of euro62.1million.
Net profit was euro29.0million, up from euro22.1million a year ago (up 31.2percent); earnings per share climbed from euro1.30 to euro1.70.
In the year under review, key balance sheet ratios and financials for the group improved.
The equity ratio rose from 40.9percent to 44.8percent.
Net cash flow at euro20.5million was also significantly positive, even though capital expenditures more than doubled as budgeted for the programme under way to expand several group locations.
Sartorius invested euro31.2million following euro13.8million a year earlier.
Net debt dropped from euro60.7million reported for December 31, 2005, to euro54.4million posted for December 31, 2006.
Business development of the divisions.
The biotechnology division increased its sales revenue 8.5percent to euro271.0million from euro249.8million a year earlier (currency-adjusted: up 9.0percent).
By boosting Ebit 31.0percent from euro24.3million to euro31.8million, the division reported earnings that were significantly overproportionate.
Its Ebit margin climbed to 11.7percent from 9.7percent in 2005.
Within the division, the high-margin business with filters and additional disposables generating double-digit growth rates proved to be the earnings engine.
The division's order intake rose 5.6percent.
Its smaller increase relative to sales revenue growth resulted from lower order intake in its project business with fermentation systems and bioreactors.
By contrast, for its business with filters and additional disposables, the division posted strong double-digit growth rates in order intake as well.
The mechatronics division grew 6.6percent, earning euro250.0million (previous year: euro234.5million); calculated in constant currencies, sales revenue rose 7.1percent.
All business areas and regions showed good growth rates.
Impacted by expenses for the mechatronics division's infrastructure measures, the division's Ebit edged up only slightly from euro19.4million in 2005 to euro20.2million in the reporting year; accordingly, the division's Ebit margin was at 8.1percent following 8.3percent posted for the previous year.
However, the operating margin also improved for the mechatronics division.
Order intake for this division increased 5.2percent from euro239.7million to euro252.1million.
CEO and executive board chairman Joachim Kreuzburg assessed 2006 as an exceptionally successful year for Sartorius.
"We reached our growth and earnings targets and, beyond this, have moved forward with our key future projects.
"As a result, we have sustainably improved our market positioning".
He also stated that in the future as well, the biotechnology division will systematically expand its product array for the biopharmaceutical industry.
"Our new alliances, the acquisition of Toha Plast and also the expansion of our own R+D capacity levels will help us become even faster in bringing innovative solutions to the market".
For the mechatronics division, Kreuzburg sees high growth opportunities primarily for the company's industrial weighing products in Asia: "Our offensive into Asia will play a significant role in the current year.
"With our new sales companies in Thailand, and Indonesia as well as our plant expansions in China and India, we are well geared up to use the potential offered in the Asian growth regions".
For fiscal 2007, company management expects to accelerate growth to around 10percent in constant currencies.
Using Ebit as the yardstick, the company is aiming at improving earnings to approximately 11percent of sales revenue.
The group's new five-year plan also forecasts dynamic growth and increasing earnings.
According to this plan, average growth in sales revenue of roughly 10percent is to be achieved annually up to the year 2011.
This expansion in sales revenue is to be accompanied by a further increase in the Ebit margin.
Sartorius will announce the figures of its certified annual financial statements for the year ended 2006 at the annual press conference on March 13, 2007.
The first quarter 2007 report is scheduled to be published on April 18, 2007.
