Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Gerresheimer Lifts FY12 Revenue Forecast Despite Lower Q1 Profit; Shares Up

Shares of Gerresheimer AG (GRRMF.PK) increased around 4 percent on Frankfurt's Xetra after the German pharma and healthcare industry supplier upped its fiscal 2012 revenue forecast on Thursday, despite lower first-quarter profit.

For fiscal 2012, the company now expects 7 percent to 8 percent revenue growth at constant exchange rates, compared to previous growth forecast of 5 percent to 6 percent. According to the company, the positive revision reflects the sharp rise in revenues at the beginning of the year and the purchase of the Indian company Neutral Glass, which is expected to strengthen its position in the emerging markets.

Chief Executive Officer Uwe Röhrhoff said, "We've got off to a very good start and are able to report excellent growth in revenues. Global demand for pharmaceutical packaging and products for the safe and reliable administration of medications is very high."

For its first quarter, net income was 6.8 million euros, down 4.2 percent from last year's 7.1 million euros, while earnings per share plunged 20 percent to 0.16 euros. Adjusted net income, which excluded certain items, however, rose 12.5 percent to 11.7 million euros and earnings per share grew 6.7 percent to 0.32 euros.

Revenues for the latest quarter totaled 268.8 million euros, up 13.6 percent from 236.6 million euros in the previous year. The company attributed the growth to core business operations, comprising pharmaceutical primary packaging products and medical devices made of glass and plastic. The cosmetics and laboratory glass businesses also had a positive start to the year, it said.

In the quarter, adjusted EBITDA, a key earnings metric, grew 6.2 percent, adjusted EBITDA margin dropped to 16.5 percent from last year's 17.7 percent.

Röhrhoff added, "We are continuously expanding our operations in the emerging markets. Our most recent acquisition of the Indian company Neutral Glass is an important milestone in our efforts to build our presence in the fast-growing Indian market."

Gerresheimer shares, which grew more than 7 percent in the morning trade, are currently trading 4.4% higher at 33.53 euros on Frankfurt's Xetra.

Register
To receive FREE breaking news email alerts for Gerresheimer AG and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Consumers spent less in July than in the previous month, a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving. Along with the unexpected drop in spending, government figures released on Friday showed that incomes rose at a slower pace in July than in the previous month. Meanwhile, data on prices indicated that inflation pressures remain tame. India's economy grew faster-than-expected in the three months to June and at the strongest pace in two years, preliminary figures from the Central Statistics Office revealed Friday. Gross domestic product grew 5.7 percent in the April to June quarter, which exceeded economists' forecast for 5.5 percent expansion. The economy grew 4.6 percent in the previous three months. Eurozone inflation slowed as expected in August on falling energy prices giving room for the central bank to support demand and economic recovery without stoking inflation and help the region to create more jobs. The unemployment rate remained unchanged at an elevated level in July. Nonetheless, it was at the lowest since September 2012.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.