Year-end report May – April 2010/11
- Order bookings increased 10* percent to SEK 9,061 M (8,757).
- Net sales rose 13* percent to SEK 7,904 M (7,392).
- Operating profit increased to SEK 1,502 M (1,232).
- Net income rose to SEK 1,031 M (833).
- Earnings per share after dilution improved to SEK 10.91 (9.01).
- Cash flow from operating activities amounted to SEK 840 M (1,056). Cash flow after investments was SEK 491 M (968), including acquisitions of SEK -259 M (0).
- The board proposes a dividend of SEK 4.00 (3.00) per share, corresponding to around SEK 378 M and 37 percent of net profit.
- For fiscal year 2011/12, net sales is expected to grow by more than 10 percent in local currency. Operating profit in SEK is expected to grow by more than 10 percent. Currency is estimated to have a negative effect of about SEK 125 M including hedging effects on earnings for fiscal year 2011/12.
Table included in attached PDF file
* Compared to last fiscal year at unchanged exchange rates.
President and CEO Tomas Puusepp comments
I am very pleased with Elekta’s solid performance in the fiscal year 2010/11. All regions and product areas developed in line with our expectations. Order bookings increased by 10 percent based on unchanged exchange rates. Operating profit rose by 22 percent to SEK 1,502 M (1,232) with an operating margin improvement to 19 percent (17).
Region Asia Pacific showed the strongest increase in demand withChina,IndiaandAustraliabeing the fastest growing individual markets. InJapan, the devastation caused by the earthquake and tsunami in March 2011 had minor effects on demand. However, we expect that priorities to rebuild the affected areas of the country may lead to short-term delays in investment decisions in cancer care.
Demand in Region Europe showed continued solid development. The financial crisis had limited effect on order bookings. Elekta performed particularly well in Russiawhich is now entering its third year of the nationwide program to invest in the expansion of radiation therapy. Germany, Italy, the Netherlandsand Turkeyhad a positive development while demand was lower in the UKand in the Nordic countries. In parts of Northern Africa demand was subdued, due to the political unrest in the region.
In Region North and South America theU.S.recovery continued following the financial crisis and economic downturn, andBrazilreported continued strong growth. Development in the fourth quarter for the region should be seen in light of a very strong corresponding period of last year, when Elekta booked one of its largest orders in the history of the company withSwedishHospitalinSeattle.
The need for cancer care is growing world-wide. Elekta is market leader in emerging markets, where demand for clinical solutions like Elekta’s is particularly strong. These markets now account for about one third of net sales and are showing accelerated growth. In the coming years we will step up our investments in geographical expansion to make cancer care available to more people around the world. We expect to capture further market share in emerging markets and to grow our installed base in emerging and established markets. Key success factors are our long term customer relations, our innovative capabilities and commitment to the highest level of service and customer care.
Elekta develops world leading solutions in image-guided radiation therapy, stereotactic radiosurgery and oncology software in collaboration with the foremost universities and hospitals world-wide. In the coming years we will accelerate our investments in research and development to provide state-of-the-art clinical solutions for cancer care. The growing interest for stereotactic radiosurgery for the treatment of cancer and multiple metastatic tumors has once again led to a record year in order bookings for Leksell Gamma Knife® Perfexion™.
Prospects are good for continued profitable growth. For fiscal year 2011/12 net sales is expected to grow by more than 10 percent in local currency. Operating profit in SEK is expected to grow by more than 10 percent. Currency is estimated to have a negative effect of about SEK 125 M including hedging effects on earnings for fiscal year 2011/12.
President and CEO
For further information, please contact:
Håkan Bergström, CFO, Elekta AB (publ)
Tel: +46 8 587 25 547, e-mail: firstname.lastname@example.org
Stina Thorman, Vice President Corporate Communications, Elekta AB (publ)
Tel: +46 8 587 25 437, e-mail: email@example.com