Össur - Third Quarter Report 2011
Announcement Össur hf. No. 11/2011
Reykjavik, 27 October 2011
STRONG SALES GROWTH
Sales - Sales growth was strong, 12% measured in local currency. Total sales
amounted to USD 101 million compared to USD 87 million in the third quarter of
2010. All markets and product segments contribute to the growth. Performance in
bracing and supports was excellent, delivering sales growth of 17%, measured in
local currency. Sales growth in prosthetics was good, 7% measured in local
currency.
Profitability - Össur continues to deliver good profits and compared to the
third quarter 2010, net profit has increased by 165%. EBITDA amounted to USD 21
million or 21% of sales and gross profit amounted to USD 64 million or 63% of
sales. Net profit amounted to USD 11 million or 11% of sales.
Jón Sigurðsson, President & CEO, comments:
"The sales in the third quarter are excellent and we are pleased with the
overall performance. All regions and product segments are growing. Healthy flow
of new products fuels the growth and amongst products launched in 2010 and 2011
are strong contributors to this success. During the quarter we introduced yet
another bionic product, the SYMBIONIC LEG, which is the first of its kind in the
world, combining seamlessly the function of the Rheo Knee and the Proprio Foot
offering unprecedented functionality for above knee amputees. This latest
addition to our bionic platform confirms our technology leadership in this
segment."
Highlights of the quarter:
* Introduction of the SYMBIONIC LEG - In September the SYMBIONIC LEG was
introduced at the AOPA trade show in the US. SYMBIONIC LEG unites the proven
capabilities of RHEO KNEE and PROPRIO FOOT into a single integrated unit
offering unprecedented functionality for above knee amputees. This
revolutionary product is the first of its kind in the market.
* Mexico facility - The Mexico facility in Tijuana was officially opened in
September. Össur started to build up the Mexico facility in September 2010
and has since then transferred manufacturing of a number of product lines
from the US to Mexico. The facility has state of the art equipment,
employees are highly qualified, and manufacturing is based on lean
processes.
* Healthy flow of new products - During the quarter six new products were
launched, four bracing and supports products and two prosthetic products.
The pipeline of new products has been very active during the year with a
good mix of new products and redesign of existing products.
Guidance 2011 - Management maintains estimates of LCY organic sales growth for
2011 in the range of 4-6%. EBITDA margin adjusted is estimated to be in the
range of 20-21% of sales for the year, as reported in the 2010 Annual Report.
Conference call tomorrow 28 October at 12:00 CET/ 10:00 GMT/ 6:00 EDT
Friday 28 October 2011 Jón Sigurðsson, President and CEO, and Hjörleifur
Pálsson, CFO, will host a conference call presenting and discussing the results
of the third quarter of 2011. The conference call will be conducted in English
and can be heard on Össur's website: www.ossur.com
To participate in the meeting please call one of the following telephone
numbers:
Europe: +44 (0)20 3043 2436 or +46 (0)8 505 598 53
The United States: +1 866 458 40 87
Iceland: 800 8660