Elekta releases preliminary financial results
· Results significantly below guidance primarily due to weak performance in the US; large orders did not close as anticipated; delays in deliveries from order backlog.
· Preliminary order bookings came in at SEK 11,900 M (12,253), a decrease of 3 percent. Based on constant exchange rates the decrease was 13 percent.
· Preliminary net sales amounted to SEK 10,800 M (10,694), equivalent to an increase of 1 percent. Based on constant exchange rates the decrease was 8 percent.
· EBITA is expected to be approximately SEK 1,400 M, before non-recurring items.
· Preliminary cash flow after continuous investments amounted to approximately SEK 800 M (494).
· Niklas Savander has, with immediate effect, stepped down as CEO. Tomas Puusepp has been appointed as new CEO.
Figures are preliminary and not yet audited and can differ compared with the final figures that will be disclosed in the year-end report on June 2.
STOCKHOLM, May 13, 2015 – Elekta’s results for the fourth quarter and the full year were significantly below expectations and the guidance given. This was primarily due to weak performance in the US. Large orders did not close as anticipated.
Results were also impacted by delays in deliveries from order backlog, particularly in emerging markets, due to market conditions, political developments, war and civil unrest.
Due to increased risk, the company incurred bad debt losses of SEK 58 M in Q4, predominantly from projects in Iraq and Libya. Provisions for bad debt have been increased with SEK 100 M to approximately SEK 150 M.
The company has also thoroughly reviewed risks in its order backlog and, as a consequence, cancelled orders valued at approximately SEK 700 M. This is related to projects in North America where hospital consolidation has led to order cancellations, as well as projects in Latin America and India that are not making sufficient progress and are not expected to be completed in a reasonable time frame primarily due to customers’ financing difficulties.
Preliminary EBITA, before non-recurring items, for fiscal year 2014/15 is expected to be approximately SEK 1,400 M, negatively affected mainly by the decrease in net sales. The non-recurring items amounted to SEK -158 M.
Preliminary cash flow after continuous investments improved compared with last year and amounted to SEK 800 M (494). The improvement mainly came from a reduction in working capital.
Niklas Savander has, with immediate effect, stepped down from his position as President and CEO of Elekta AB (publ). The Board of Directors has appointed Tomas Puusepp as President and CEO as of today. Tomas Puusepp is currently Executive Director of the Elekta Board and served as President and CEO of Elekta during fiscal years 2005/06 to 2013/14.
Elekta will publish its full-year report on June 2 at 07:30 CET.
Conference call
Elekta will host a telephone conference at 10:00–10:45 CET on May 13 with Laurent Leksell, Chairman of the Board, Tomas Puusepp, President and CEO and Håkan Bergström, CFO.
To take part in the conference call, please dial in about five minutes in advance.
- UK dial-in number: +44 (0)20 342 814 08
- US dial-in number: +1 855 831 59 44
- Swedish dial-in number: +46 (0)8 566 427 00
The telephone conference will be broadcasted live online (for the possibility to ask questions, please also dial in). Please use the link: http://event.onlineseminarsolutions.com/r.htm?e=993744&s=1&k=4A65A92D0539782AF11A285B97E3D2E6
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For further information, please contact:
Håkan Bergström, CFO, Elekta AB (publ)
Tel: +46 8 587 25 547, e-mail: hakan.bergstrom@elekta.com
Time zone: CET: Central European Time
Gert van Santen, Group Vice President Corporate Communications, Elekta AB
Tel: +31 653 561 242, e-mail: gert.vansanten@elekta.com
Time zone: CET: Central European Time
Tobias Bülow, Director Financial Communication, Elekta AB
Tel: +46 722 215 017, e-mail: tobias.bulow@elekta.com
Time zone: CET: Central European Time
The above information is such that Elekta AB (publ) shall make public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 04:00 CET on May 13, 2015.
About Elekta
Elekta is a human care company pioneering significant innovations and clinical solutions for treating cancer and brain disorders. The company develops sophisticated, state-of-the-art tools and treatment planning systems for radiation therapy, radiosurgery and brachytherapy, as well as workflow enhancing software systems across the spectrum of cancer care. Stretching the boundaries of science and technology, providing intelligent and resource-efficient solutions that offer confidence to both health care providers and patients, Elekta aims to improve, prolong and even save patient lives.
Today, Elekta solutions in oncology and neurosurgery are used in over 6,000 hospitals worldwide. Elekta employs around 3,800 employees globally. The corporate headquarters is located in Stockholm, Sweden, and the company is listed on NASDAQ Stockholm. Website: www.elekta.com.