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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.

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by RTT Staff Writer

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