SORIN GROUP: REVENUES UP 5.6% IN THE THIRD QUARTER. EBITDA +14.7%, EBIT +30.0%
Highlights for the third quarter of 2006:
- Net revenues of 184.7 million euros, or 5.6%* more than in the same period in 2005 (cardiovascular revenues +6.4%*);
- EBITDA of 18.9 million euros, for a gain of 14.7%*;
- EBIT of 4.8 million euros, up 30%**;
- Net indebtedness of 325.4 million euros.
Milan, November 13, 2006 – The Board of Directors of Sorin S.p.A. met today in Milan under the chairmanship of Umberto Rosa. It reviewed and approved the Report on Operations in the Third Quarter of 2006, which was presented by Drago Cerchiari, the Company's Chief Executive Officer.
In the third quarter of 2006, revenues totaled 184.7 million euros, up from 177.6 million euros in the same period last year, for a gain of 5.6% on a comparable foreign exchange translation basis.
The Cardiac Surgery Business Unit (implantable devices and cardiac surgery systems) had revenues of 101.0 million euros, or 4.9% more (on a comparable foreign exchange translation basis) than in the third quarter of 2005.
The rise in sales was driven by the successful launch, both in Europe and in the United States, of the new S5 heart-lung machine, and continued growth in the tissue-valve area.
The Cardiac Rhythm Management Business Unit (implantable devices that manage cardiac rhythm) reported revenues of 51.3 million euros, compared with 45.2 million euros in the third quarter of 2005, for an increase of 14.7% on a comparable foreign exchange translation basis.
* On a comparable foreign exchange translation basis
** On a comparable foreign exchange translation basis and before restructuring charges
Sales were up both in the tachycardial segment (mainly defibrillators and CRT-D), and in the bradycardial segment (mainly pacemakers), owing to the success of new products recently brought to market: the OVATIO™ implantable defibrillator, the smallest in the world, and the innovative AAIsafeR™ and PARAD+® algorithms. In addition, the Business Unit continued to successfully implement its marketing strategy in the North American market.
The Vascular Therapy Business Unit (drug-eluting and bare-metal coronary stents, endovascular stents and catheters for angioplasty) booked revenues of 7.7 million euros, or 16.0% less (on a comparable foreign exchange translation basis) than in the three months ended September 30, 2005.
This decrease reflects the impact of slower sales of the Janus drug-eluting stent, offset in part by a gain in shipments of the CHRONO™ stent. This new, non-medicated stent is made of stellite, a cobalt and chromium alloy that is exceptionally durable and flexible.
The Renal Care Business Unit (biomedical devices to treat patients with kidney diseases) had revenues of 23.1 million euros, down 6.4% (on a comparable foreign exchange translation basis) compared with the third quarter of 2005.
Consolidated EBITDA of Sorin Group totaled 18.9 million euros in the third quarter of 2006, up 14.7% over the same period last year (on a comparable foreign exchange translation basis). The return on sales also improved.
At 4.8 million euros, EBIT were 30% higher (on a comparable foreign exchange translation basis and net of restructuring charges) than in the three months ended September 30, 2005.
At September 30, 2006, the net indebtedness of the Sorin Group totaled 325.4 million euros, compared with 320.3 million euros at June 30, 2006.
"Even though market demand continued to slow in some key market segments in the third quarter of 2006, Sorin Group turned in a positive performance, growing faster than the market as whole in its strategic segments. This enabled the Group to post results that are in line with our forecasts and with the guidance data provided to the financial markets," said Drago Cerchiari, Sorin's Chief Executive Officer.
The Group expects to close the year on a positive note, reporting revenue growth that is consistent with the trend of the first nine months and EBITDA margin constantly improving.
For the first time, Senator Lucio Stanca attended a Sorin Board meeting, and qualified himself as independent.
During the meeting, the Board of Directors of Sorin S.p.A. co-opted without executive authority Luca Di Giacomo, Director at Bain & Co., Milan, who qualified himself as independent.
Sorin Group (Reuters code: SORN.MI), a world leader in the development of medical technologies for cardiac surgery, offers innovative therapies for cardiac rhythm dysfunctions, interventional cardiology and the treatment of chronic kidney diseases. The companies of Sorin Group are: Dideco, CarboMedics, COBE Cardiovascular, Stöckert, Mitroflow, ELA Medical, Sorin Biomedica, Bellco and Soludia. Sorin Group has about 4,600 employees working at facilities in more than 80 countries throughout the world to serve over 5,000 public and private treatment centers.
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