Nine-month interim report May – January 2010/11

Order bookings increased 10* percent to SEK 6,041 M (5,705).

Net sales rose 14* percent to SEK 5,328 M (4,835).

Operating profit increased to SEK 751 M (553).

Net income rose to SEK 500 M (358).

Earnings per share after dilution improved to SEK 5.30 (3.91).

Cash flow from operating activities amounted to SEK 460 M (589). Cash flow after investments was SEK 142 M (527), including acquisitions of SEK -255 M (0). 

For fiscal year 2010/11, net sales is expected to grow by 12-14 percent in local currency. Operating profit in SEK is expected to grow by 16-20 percent.

Table included in attached PDF file

* Compared to last fiscal year at unchanged exchange rates.

President and CEO Tomas Puusepp comments  

I am very pleased with Elekta’s solid performance in the first nine months of fiscal year 2010/11. Order bookings increased by 10 percent based on unchanged exchange rates.
Operating profit rose by 36 percent to SEK 751 M (553) with an operating margin improvement to 14 percent (11).

Order intake for the nine-month period was particularly strong in Region North and South America, helped by a strong third quarter in the North American market and a positive development in Brazil. In the Asia Pacific region, China, India and Australia represented the strongest growth markets. Demand in Europe, Middle East and Africa showed a mixed picture. Eastern Europe, Russia and Italy reported continued solid growth while activity was lower in the UK and in the Nordic countries.

There may be quarterly fluctuations in demand in the respective regions. However, we expect sustainable growth rates for region Europe, Middle East and Africa as well as for North America at mid to high single digit levels, and double digit growth rates for the Asia Pacific region.

The need for cancer care is growing world wide. Elekta is market leader in emerging markets, where the demand for clinical solutions like Elekta’s is particularly strong. We continue to make cancer care available to more people around the world through geographical expansion. Key success factors are our long term customer relations, our innovative capabilities and our commitment to the highest level of service and customer care.

Elekta provides world leading solutions in image-guided radiation therapy, stereotactic radiosurgery and oncology software in collaboration with the foremost universities and hospitals worldwide. There is an increasing interest for stereotactic radiosurgery and stereotactic radiotherapy for the treatment of cancer and multiple metastatic tumors.

With good visibility for the remainder of the fiscal year, Elekta’s financial outlook for the fiscal year 2010/11 has been changed.  Net sales is expected to grow by 12-14 percent in local currency. Operating profit in SEK is expected to grow by 16-20 percent.  

Tomas Puusepp
President and CEO