Carl Zeiss Meditec affirms growth target for financial year 2009/2010, despite cautious start
The medical technology company has ended the first quarter of financial year 2009/2010 (balance sheet date: 31 December 2009) with sound results, proving it is able to hold its own in the persistently volatile and difficult economic environment. This steady development is also driven by the Company program, RACE 2010.
In the first three months of financial year 2009/2010, Carl Zeiss Meditec generated revenue of EUR 156.2 million (previous year: EUR 177.9 million). The year-on-year decline of 12.2 percent is above all due to the previous year's quarter, which was influenced by special effects and negative effects caused by exchange rate fluctuations totaling EUR 8.3 million. The gross margin, on the other hand, increased from 50.3 percent to 50.7 percent. Earnings before interest and tax decreased by 13.1 percent year-on-year to EUR 18.7 million (previous year: EUR 21.5 million). The EBIT margin, however, remained almost stable at 12.0 percent (previous year: 12.1 percent), despite a decline in revenue. Cash flow from operating activities increased year-on-year and amounts to EUR 7.7 million (previous year: EUR 4.0 million).
"In spite of the difficult economic situation, it is hard to be content with the development of revenue in the first quarter. However, our focus on efficiency and good cost management led to a stable development of results. We therefore consider ourselves well equipped - if markets continue to stabilize and recover - to be able to continue on our growth course of the past year, with corresponding increases in profitability," says Dr. Michael Kaschke, President and CEO of Carl Zeiss Meditec AG.
Regionally, the "Europe, Middle East and Africa" region generated the largest share of revenue of 37.4 percent. The "Americas" region was impacted by highly negative currency effects.
On the strategic business unit level, the "Surgical Ophthalmology" SBU further increased its revenue, due particularly to the expansion of distribution activities for the innovative multifocal lenses. This business unit's share of revenue thus increased to 12.5 percent (previous year: 10.9 percent). The largest share of revenue in the first quarter of 2009/2010 was again generated by the "Ophthalmic Systems" strategic business unit, with 46.9 percent (previous year: 50.1 percent). The revenue of this business unit and the revenue of the "Microsurgery" SBU were adversely affected by currency effects.
"With orders on hand of EUR 65.2 million at the end of the first quarter (+7.4 percent compared with the previous year) and a number of innovative new products due to come onto the market in 2010, we are sticking to our projections for financial year 2009/2010 as a whole. In spite of the extremely volatile market environment that persists, we anticipate revenue growth in 2010 that is at least on a par with growth in the markets, and we expect this growth to range between 0 percent and 5 percent, depending on the segment and region," says Dr. Michael Kaschke.
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