Getinge Falls After Postponing Margin Target: Stockholm Mover
Getinge AB, a Swedish maker of sterilization systems sold in more than 100 countries, fell the most in more than a week in Stockholm after the company said it won’t reach its operating margin target this year or in 2014.
The shares declined as much as 3.1 percent, the biggest intraday drop since Jan. 28, and were down 2.7 percent to 193.70 kronor as of 11:30 a.m. in the Swedish capital, giving the company a market value of 47.4 billion kronor ($7.39 billion).
Getinge postponed its goal of reaching an margin on earnings before interest, taxes and amortization of about 22 percent to 2015, due to lower demand, a more challenging currency situation and higher costs related to a U.S. medical device tax, according to a statement. Getinge, based in the Swedish town of the same name, is in the process of concentrating manufacturing to fewer plants and moving production to low-cost countries.
“In terms of the profit trend for the current year, growth is expected to become stronger during the second half of the year compared with the first six months,” said Getinge, which is hosting a capital markets day in Stockholm. “Earnings in the first quarter of 2013 are expected to be lower than in the year- earlier period.”
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