Sartorius reports financial results for the third quarter of 2009

Today Sartorius (FWB:SRT), a leading international process and laboratory technology provider, reported its nine-month results for 2009. Third-quarter business of both Group divisions showed a highly divergent pattern of development, similar to that in the previous quarters. While the Biotechnology Division achieved strong sales gains and overproportionate increases in earnings, development in the Mechatronics Division continued to be considerably impacted by the global downturn. However, the latter division’s second- and third-quarter order intake and sales stabilized at a lower level. Due to the extensive cost-saving measures implemented, operating earnings of the Mechatronics Division moved back into the profit zone in the third quarter.

Business Development of the Divisions
Sartorius Stedim Biotech
The Biotechnology Division (Sartorius Stedim Biotech/SSB), which contributes approx. two-thirds to consolidated sales, was able to continue its dynamic growth trend into the third quarter of 2009 as well. After nine months of business activity, its order intake was at 303.4 million euros and thus up 12.7% from a year ago (currency-adjusted: 10.3%). Again, business with single-use products fueled this increase by generating strong double-digit growth rates. In addition to its already positive development, Sartorius Stedim Biotech profited from the strong demand generated by its customers from the vaccine industry. By contrast, business with large-scale bioreactor systems declined slightly due to market conditions.
Considering sales revenue, the Biotechnology Division also posted sizeable gains. In the reporting period, its sales climbed 9.0% (currency-adjusted: 6.7%) from 273.3 million euros a year earlier to 298.0 million euros. All business regions with their significantly positive growth rates contributed to the successful development of sales.

This strong sales development is also reflected by the Biotechnology Division’s nine-month earnings. Operating earnings (earnings before interest, taxes and amortization and adjusted for extraordinary expenses = underlying EBITA) showed significantly overproportionate improvement, surging 58.9% to 46.3 million euros. In the year-earlier period, they were at 29.1 million euros. The corresponding margin rose from 10.7% to 15.5% in the current reporting period. Besides the uplift in sales volume, the Biotechnology Division’s enhanced product mix favoring high-margin single-use products especially contributed to this surge in profitability.

“The earnings of Sartorius Stedim Biotech impressively show that we are on the right track with our business strategy and our product portfolio," commented Sartorius CEO Joachim Kreuzburg. "For our customers in the biopharmaceutical industry, we are now excellently positioned as a total solution provider with a high proportion of innovative single-use products.”