Gerresheimer Further Increases its Sales and Earnings Power



    Sales in the Second Quarter up by 12.8% to EUR276.3m (First Half: up by
    15.2% to EUR515.4m)

    Adjusted Group Results in the Second Quarter Tripled From EUR6.3m to
    EUR17.6m

    CEO Dr. Axel Herberg Confirms the Prospects for 2008

    DUSSELDORF, Germany, July 15 /CNW/ - Gerresheimer AG again increased its
sales and results in the second quarter of 2008. Compared with the second
quarter of 2007, sales improved by 12.8%, or 16.5% on a like-for-like
exchange-rate basis, to EUR276.3m. Operating results (Adjusted EBITDA) rose by
20.2% to EUR53.6m (second quarter of 2007: EUR44.6m). In the second quarter of
2008 Gerresheimer therefore achieved an adjusted EBITDA margin of 19.4%
(second quarter of 2007: 18.2%). Contributions to this gratifying development
were made by the positive sales trend in the market segments of pharmaceutics
and cosmetics and by the latest acquisitions. Overall, Gerresheimer therefore
continued the improvement in its earnings position in the second quarter and
thus the first half of 2008 as a whole. Adjusted Group results increased in
the second quarter of 2008 to EUR17.6m and in the first half to EUR27.5m. This
means a three-fold rise and means adjusted earnings per share of EUR0.53 in
the second quarter and EUR0.82 for the first half of 2008.
    "Following our record year in 2007 we have again increased our sales and
profit in the first half of 2008," says Dr. Axel Herberg, CEO of Gerresheimer
AG. "We expect further growth in all divisions during the course of the year
and will consistently continue to focus on pharma & life science."
    Just recently, Gerresheimer's discontinuation of peripheral operations
such as consumer health care confirmed this concentration on pharmaceutics and
life science.
    Thanks to the positive development in the second quarter a marked
improvement in results has also been achieved for the first half of 2008 as a
whole. Sales rose by 15.2%, or 18.9% on a like-for-like exchange-rate basis,
to EUR515.4m (first half of 2007: EUR447.3m). Operating results (Adjusted
EBITDA) increased by 20.3% from EUR80.3m (first half of 2007) to EUR96.6m.
This positive development was supported by good performance by all the
divisions.

    Positive development of all divisions

    The Tubular Glass Division improved its sales in the second quarter of
2008 by 10.3 % to EUR78.0m (second quarter of 2007: EUR70.7m). The main
contributor was increased demand in the segment of RTF syringe systems.
Production capacity here is already fully utilised, so a further RTF facility
is therefore being constructed and is to commence production in early 2009. A
further contribution to growth was made by the high level of demand for
pharmaceutical vials in the USA, marked expansion in the Chinese market and
the pharma glass business of Comar Inc. which was acquired in March 2007.
Operating results (Adjusted EBITDA) improved by 22.8 % to EUR19.4m.
    Sales by the Plastic Systems Division rose to EUR93.6m (second quarter of
2007: EUR79.6m). This is equivalent to an increase of 17.6 %. The high-margin
segment of medical plastic systems developed particularly positively. Here
sales of inhalers and diabetes-care products and the segment of molecular
diagnostics grew substantially. Through the sale of the consumer health care
business at the start of the third quarter, Gerresheimer has in addition
further focussed the business of the Plastic Systems Division on the pharma
and life-science market. Operating results (Adjusted EBITDA) rose by 21.8 %
from EUR14.7m (second quarter of 2007) to EUR17.9m.
    Sales by the Moulded Glass Division in the second quarter of 2008
totalled EUR85.6m. This is equivalent to an increase of 6.1 % in comparison
with the prior year (second quarter of 2007: EUR80.7m), well ahead of the
market average. The growth was attributable to higher sales of pharmaceutical
vials in the USA and Europe and of cosmetics products. Thanks to targeted
investments in productivity improvements and continued high capacity
utilisation, Gerresheimer achieved a substantial margin improvement in the
Moulded Glass Division. Compared with the prior year (second quarter of 2007:
EUR16.7m), operating results (Adjusted EBITDA) increased by 11.4 % to
EUR18.6m.
    Sales by the Life Science Research Division in the second quarter of 2008
totalled EUR22.6m, an increase of 51.7 % (second quarter of 2007: EUR14.9m).
This growth was largely attributable to the life-science research business of
Thermo Fisher Scientific which was contributed to the Kimble Chase joint
venture in July 2007 and successfully integrated. Major contributions to the
positive results were also made by the Division's Chinese operations and cost
savings through production relocations. Operating results (Adjusted EBITDA)
improved from EUR1.5m (second quarter of 2007) to EUR2.7m in the second
quarter of 2008.

    Gerresheimer confirms the future prospects

    Despite continuing turbulence in the worldwide finance markets and
dramatically rising energy costs, Gerresheimer expects a sustained positive
trend in the markets in which it operates. Thanks to the positioning of its
product portfolio, Gerresheimer will enjoy above-average participation in
this. Assuming an exchange rate of USD 1.55 : EUR 1.00, sales growth of 9% to
11% is expected for the current financial year. This is equivalent to a growth
rate of 14% to 16% on a like-for-like exchange-rate basis for the businesses
which have been continued.
    Thanks to the sales growth and productivity increases, Gerresheimer
continues to expect that operating results (Adjusted EBITDA) for the financial
year 2008 will mean an improvement in the adjusted EBITDA margin to around
19.5 %.
    The sound balance sheet structure and equity ratio combined with the
significant reduction in financial liabilities after the IPO in 2007 plus the
cash flow generated will in the future enable Gerresheimer to achieve further
organic growth and successfully continue its strategy of selective
acquisitions. The funds available will be invested primarily in the field of
pharmaceutics and life science.

    About Gerresheimer

    Gerresheimer employs more than 10,300 people in 40 locations in Europe,
America and Asia. In the financial year 2007, worldwide sales totalled around
EUR958m. The product portfolio ranges from pharmaceutical vials made of glass
and plastic through to complex drug-delivery systems for the pharma & life
science industry. These include sterile syringes, inhalers and other
system-based approaches for safe dosage and application of medications. The
Group enjoys a leading position in markets which are characterised by high
technical and regulatory barriers.

    
    Group Key Figures (IFRS)

    (End of Q1: May 31; Financial Year end November 30)

    EUR million         Q2 2008 Q2 2007 Change % Q1-Q2 Q1-Q2 Change % FY 2007
                                                  2008  2007

    Net sales             276.3   245.0    +12.8 515.4 447.3    +15.2   957.7
    Adjusted EBITDA(1)     53.6    44.6    +20.2  96.6  80.3    +20.3   181.6
    in % of net sales      19.4    18.2           18.7  18.0             19.0
    Adjusted EBITA         34.9    28.8    +21.2  60.4  50.7    +19.1   116.6
    in % of net sales      12.6    11.8           11.7  11.3             12.2
    Profit from
     operations (EBIT)     18.6    12.4    +50.0  33.5  23.8    +40.8    53.3

    Net income                          (greater             (greater
                                            than)                than)
                            5.6    -4.0      100   8.1  -8.0      100     0.8

    Adjusted net                        (greater             (greater
    Income(2)                               than)                than)
                           17.6     6.3      100  27.5   9.0      100    44.3

    Earnings per share     0.14       -           0.20     -            -0.04
    Adjusted earnings
     per share(3)          0.53       -           0.82     -             1.34




    Segment Key Figures

    EUR million         Q2 2008 Q2 2007 Change % Q1-Q2 Q1-Q2 Change % FY 2007
                                                  2008  2007
    Tubular Glas
     Net sales             78.0    70.7    +10.3 143.7 130.9     +9.8   271.2
    Adjusted EBITDA(1)     19.4    15.8    +22.8  35.1  30.8    +14.0    66.7
    Plastic Systems
     Net sales             93.6    79.6    +17.6 170.8 135.9    +25.7   299.7
    Adjusted EBITDA(1)     17.9    14.7    +21.8  32.0  24.4    +31.1    56.1
    Moulded Glass
     Net sales             85.6    80.7     +6.1 163.2 154.6     +5.6   318.8
    Adjusted EBITDA(1)     18.6    16.7    +11.4  34.6  30.0    +15.3    65.1
    Life Science
     Research
     Net sales             22.6    14.9    +51.7  44.4  26.9    +65.1    72.2
    Adjusted EBITDA(1)      2.7     1.5    +80.0   5.1   2.8    +82.1     7.7


    ---------------------
    (1) Adjusted EBITDA: earnings before income taxes, financial result,
        amortization of fair value adjustments, extraordinary depreciation,
        depreciation and amortization, restructuring expenses and one-off
        income and expenses

    (2) Net income before non-cash amortization of fair value adjustments,
        special effects from restructuring expenses, extraordinary
        depreciation, the balance of one-off income and expenses (including
        significant non-cash expenses) and the related tax effects

    (3) Adjusted net income after minorities divided by 31.4m shares
    





For further information:

For further information: Contact Press: Burkhard Lingenberg, Director
Corporate PR & Marketing, Telephone +49-211-6181-250, Telefax
+49-211-6181-241, E-mail b.lingenberg@gerresheimer.com; Contact Investor
Relations: Anke Linnartz, Director Corporate Investor Relations, Telephone
+49-211-6181-314, Telefax +49-211-6181-121, E-mail
a.linnartz@gerresheimer.com


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