Getinge Falls After Warning on Profit: Stockholm Mover
Getinge AB (GETIB) fell the most in almost nine months in Stockholm trading after the Swedish maker of sterilization systems said its estimated third-quarter profit “materially deviates” from analyst expectations.
The shares dropped as much as 9.7 percent to 199 kronor, their steepest decline since Jan. 11 and lowest price since June 3. They fell 8.4 percent to 201.80 kronor as of 9:46 a.m. local time, with trading volume at 276 percent of the daily average in the past three months. Getinge was the biggest decliner among all the 278 stocks on the Stockholm All-Share Index.
Getinge will probably report a consolidated profit before tax of 560 million kronor ($87.3 million) to 570 million kronor when reporting third-quarter earnings on Oct. 15, the Getinge, Sweden-based company said in a statement today. The average estimate in a Bloomberg survey of eight analysts is for pretax profit of 765 million kronor. Getinge sees full-year pretax profit, including restructuring charges and one-time costs, at 3 billion kronor to 3.2 billion kronor.
The profit warning is mainly attributable to an “unfavorable product mix” within Getinge’s critical-care division, a delay in cost savings related to the company’s acquisition of Kinetic Concepts Inc.’s TSS division, negative exchange rate effects and the U.S. medical-device tax, it said.
“Getinge is in a period where they are working to improve efficiency, cutting costs, integrating the TSS acquisition and changing their organization,” Johan Unnerus, an analyst at Swedbank AB in Stockholm, said in a telephone interview. “The company has also been relatively clear with the fact that the year will be tilted and tail-heavy toward the fourth quarter.”
Getinge is estimated to report a pretax profit of 1.81 billion kronor for the fourth quarter of 2013, according to the average estimate of eight analysts surveyed by Bloomberg.
Unnerus has a neutral rating on Getinge, after cutting his recommendation from buy in July. Of the total of 20 analysts that cover Getinge and share their ratings with Bloomberg, eight advise clients to buy the shares, six have hold recommendations and six advise clients to sell the stock.
To contact the editor responsible for this story: Tasneem Brogger at email@example.com