Business News
Sartorius AG Annual Shareholders Meeting in 2008 / Q1 Business Figures
Wednesday 30. April 2008 - Dividend increase approved Sartorius targets further growth Earnings figures for the first quarter of 2008 within range of expectations
Today, shareholders at the annual meeting of
Sartorius AG in Goettingen, Germany, approved the resolution proposed by the Supervisory Board and the Executive Board to pay dividends of 0.66 per ordinary share and 0.68 per preference share. As a result, dividends will increase for the fourth year in succession (previous year: ord. 0.62; prf. 0.64). The profits distributed will thus rise 6.3% to 11.4 million. Shareholders granted discharge to the Supervisory Board and the Executive Board by a large majority. Likewise, the large majority of the shareholders approved an increase in the remuneration of the Supervisory Board members.
Excerpts of the Report Held by the CEO
In his speech to the shareholders, CEO and Executive Board Chairman Dr. Joachim Kreuzburg assessed fiscal 2007 as exceptionally intense and economically successful. He said that following the largest acquisition in the companys history so far and despite the negative currency impacts, Sartorius is moving onto a new level by having achieved a sales revenue of 622.7 million and an EBITA margin of 11.4%.
In addition to improving key financials yet again, Sartorius succeeded in realizing extensive strategic projects of long-term significance. These entailed acquiring Stedim and Toha Plast, selling the companys hydrodynamic bearings business, taking restructuring measures in the USA and implementing global infrastructure projects. “By further developing our Group structures progressively, we have created the prerequisites for continuing to grow strongly and profitably in both divisions,” stated Dr. Kreuzburg. In the past year, the company implemented the guiding principle of its present development phase, acceleration, at a rate that could hardly have been more intense or more target oriented than what it experienced, according to Kreuzburg.
Ambitious goals are on the agenda for the future as well, as the CEO stated in describing the Groups further targets: “Our particular areas of focus will be on research and development and the innovation rate concerning our product portfolio. In both divisions, we have a number of new products in the pipeline and will be launching these on the market this year.” Moreover, in the Biotechnology Division, the company will concentrate its efforts on implementing its new business model for its North American equipment activities, building its new plant in Bangalore, India, and on preparing to extend its facility in Puerto Rico. For the Mechatronics Division, its growth strategy in Asia, especially in the segment of industrial equipment, will be a priority.
Figures for the First Quarter of 2008
On the date of the Annual Shareholders Meeting, the Sartorius Group also published its first-quarter business results for the new fiscal year. Currency-adjusted sales revenue rose 7.7% to 149.2 million (Q1 2007*: 143.6 million; increase at current exchange rates +3.8%). In this context, sales revenue for the Biotechnology Division climbed at a currency-adjusted rate of 9.5% to 90.6 million (Q1 2007: 85.9 million; growth rate at current exchange rates +5.4%). Sales revenue for the Mechatronics Division grew at a currency-adjusted rate of 5.1% to 58.6 million
(Q1 2007: 57.7 million; growth rate at current exchange rates +1.5%).
Consolidated first-quarter operating earnings (EBITA = earnings before interest, taxes and amortization) rose from 11.8 million to 12.2 million. At 8.2%, the Groups EBITA margin remained unchanged compared to the year-earlier figure. Based on the previous years exchange rates, the EBITA margin would have increased to more than 9%. Dr. Joachim Kreuzburg assessed first-quarter results as an overall positive start into fiscal 2008: “Given the increases in sales revenue and earnings, we are within the range of our expectations for the first quarter. Considering the current negative impact of the dollar/euro exchange rate and a partially difficult market environment, we are satisfied with what we have achieved so far.” For the full fiscal year of 2008, the Sartorius Group is continuing to aim at achieving sales revenue growth of more than 9% in constant currencies. Based on this anticipated sales revenue and on an average exchange rate of 1.40 US dollars to the euro, the Group is planning to increase its EBITA margin to approx. 12%.
* To ensure the best possible comparability, the first-quarter figures of 2007 are shown on a pro forma basis and adjusted for extraordinary expenses.