-Mon Report: Carl Zei Meditec AG: cautious start to the new financial year, after strong annual results

JENA/Germany, 13.02.2014.

As a result of unfavourable exchange rates and a slowdown in momentum in Microsurgery, Carl Zeiss Meditec AG ended the first quarter of financial year 2013/2014 with a slight decline in revenue and earnings. At 212.3 million, revenue was 3.1 percent lower than in the same quarter of the previous year (adjusted for currency effects: 1.7%); earnings before interest and taxes fell to 26.5 million (previous year: 31.3 million).

In the first three months of the new financial year, foreign currency losses and a smaller share of revenue generated by the Microsurgery SBU noticeably contributed to the lower operating results recorded by the medical technology provider compared with the same quarter of the previous year. Development of the strategic business units (SBUs) and regions during the first quarter was mixed.

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, gave his take on the 3-month figures: "In spite of a more restrained pace of growth in Microsurgery and the negative currency effects, which were the main cause of the slowdown in growth, our sights for the financial year remain firmly set on our goal to increase revenue at least on a par with general market growth; our objective to sustainably increase our EBIT margin to 15 percent by 2015 also remains unchanged."

Revenue by business unit

The development of business in our strategic business units was varied. The more restrained pace of growth seen recently in Microsurgery was further curbed by negative currency effects.

Revenue decreased year-on-year from 105.1 million to 92.1 million. The SBU Ophthalmic Systems grew slightly, in spite of the strong competitive pressure and an unfavourable currency effect. Revenue increased year-on-year from 84.4 million to 86.7 million. Once again, the Surgical Ophthalmology SBU performed extremely well. Revenue climbed to 33.4 million, compared with 29.5 million in the same quarter of the previous year.

Revenue by region

The EMEA region (Europe, Middle East and Africa) generated revenue of 70.5 million (previous year: 76.2 million). This reflects in particular the expiry of government investment schemes in Russia, which had had a particularly positive effect on this regions revenue in the previous quarters.

The development of business in the Americas region was very positive compared with the previous year. Revenue here increased by 6.3 percent year-on-year, to 77.6 million. Both the USA and Latin America contributed to growth in this region.

Business in the Asia/Pacific region was once again significantly impacted by currency effects. A positive development of business, particularly in China and Southeast Asia, was not enough to compensate for the weak Japanese yen, in particular, combined with a general slowdown in economic growth in Japan. At 64.2 million, revenue in this region was down by 8.1 percent compared with the previous year. Adjusted for currency effects, however, the region would have reported growth of almost 3 percent.

Outlook

In spite of difficult general conditions, Ludwin Monz believes the Company is on the right track. "We shall continue to adhere firmly to our investments in R&D, which form the basis for future growth. Strategic foundations, such as the consolidation of our rapidly growing intraocular lens business through the acquisition of Aaren Scientific and the improvement of our market penetration in Turkey, which we announced at the beginning of 2014, support our aim to achieve a regionally balanced market focus geared to a wide range of growth areas."

Revenue by strategic business unit

Figures in

EUR 000 3 Months 2012/2013 3 Months 2013/2014 Change from prev. year

Ophthalmic Systems

84,421 86,738 2.7%

Surgical Ophthalmology

29,472 33,438 13.5%

Microsurgery

105,106 92,103 -12.4%

Revenue by region

Figures in

EUR 000 3 Months 2012/2013 3 Months 2013/2014 Change from prev. year

EMEA

76,209 70,522 -7.5%

Americas

72,973 77,568 6.3%

Asia/

Pacific region

69,817 64,189 -8.1%

Jann Gerrit Ohlendorf

Director Corporate Communications

Carl Zeiss Meditec AG

Phone: 49 3641 220-331

Fax: 49 3641 220-332

E-Mail:

press.meditec@zeiss.com

Sebastian Frericks

Investor Relations

Carl Zeiss Meditec AG

Phone: 49 3641 220-116

E-Mail:

investors.meditec@zeiss.com

Brief profile

Carl Zeiss Meditec AG (ISIN: DE 0005313704), which is listed on TecDAX of the German stock exchange, is one of the world's leading medical technology companies. The Company supplies innovative technologies and application-oriented solutions designed to help doctors improve the quality of life of their patients. It provides complete packages of solutions for the diagnosis and treatment of eye diseases - including implants and consumable materials. The company creates innovative visualisation solutions in the field of microsurgery. The medical technology portfolio of Carl Zeiss Meditec is rounded off by promising, future-oriented technologies such as intraoperative radiotherapy. In financial year 2012/2013 (ended 30 September) the Groups more than 2,500 employees generated revenue of almost 906 million.

The head office of Carl Zeiss Meditec is in Jena, Germany. The company has subsidiaries in Germany and abroad; more than 50 percent of its employees are based in the USA, Japan, Spain and France. The Center for Research and Development (CARIn) in Bangalore, India and the Carl Zeiss Innovations Center for Research and Development in Shanghai, China, strengthen the presence in these rapidly developing economies. Around 35 percent of Carl Zeiss Meditec shares are in free float. The remaining approx. 65 percent are held by Carl Zeiss AG, one of the world's leading groups in the optical and optoelectronic industries. Carl Zeiss offers innovative solutions for the future-oriented

LINK:	http://applications.zeiss.com/C1256A770030BCE0/WebViewTopNewsAllE/AB74...
	See more stories from zeiss

Most recent headlines