Gerresheimer Substantially Increases Quarterly Operating Profit



    DUSSELDORF, Germany, Oct. 15 /CNW/ -

    
    -   Sales in the Third Quarter up by 7.2% to EUR268.0m

    -   Adjusted Group Results More Than Doubled in the Third Quarter of 2008
        (greater than)From EUR7.4m to EUR16.5m

    -   Sales Process Started for Technical Plastics Business

    -   CEO Dr. Axel Herberg Confirms the Outlook for 2008
    

    Gerresheimer AG again achieved a substantial increase in sales and
operating results in the third quarter of 2008. Overall, sales by the globally
operating manufacturer of special products for the pharma & life science
industry totalled EUR268.0m (Q3 2007: EUR250.1m). This is equivalent to growth
of 7.2%. On a like-for-like exchange-rate basis sales actually increased by
10.2%. Operating results (Adjusted EBITDA) improved by 14.1% to EUR50.3 m
(prior year: EUR44.1m). The adjusted EBITDA margin increased to 18.8% from
17.6%. In the third quarter the sale process for the Technical Plastics
business was commenced. This led to non-scheduled depreciation of EUR33.0m,
resulting in a negative consolidated result of EUR22.8m for the third quarter.
Gerresheimer takes this charge in anticipation of the possible book loss on
the sale. The depreciation has no effect on cash flow or operating results.
The adjusted net income, which reflects the company's operating profitability,
more than doubled in comparison with the prior-year quarter to EUR16.5m (Q3
2007: EUR7.4m). The same applies for adjusted earnings per share, which were
substantially higher in the third quarter of 2008 at EUR0.52 (Q3 2007:
EUR0.22).
    "By focussing on the markets of pharma & life science we have again
realised above-average growth this quarter. Gerresheimer is bucking the
current negative trend in the global economy and shows that we are a strong
company which continues to grow profitably even in difficult times," says Dr.
Axel Herberg, Chief Executive Officer of Gerresheimer AG.
    The positive result for the third quarter of 2008 is also reflected in
the nine-month figures. In the first three quarters of the current financial
year Gerresheimer achieved sales of EUR783.4m (Q1-Q3 2007: EUR697.4m). This is
equivalent to sales growth of 12.3%. Operating results (Adjusted EBITDA)
improved by 18.1% to EUR146.9m (prior year: EUR124.4m). The Adjusted EBITDA
margin was 1.0 percentage point higher than in the first nine months of the
prior year and reached 18.8%.

    Growth in all divisions

    In the third quarter of 2008, sales by the Tubular Glass Division rose by
14.0%, or 19.1% on a like-for-like exchange-rate basis, to EUR77.6 m (prior
year: EUR68.1m). The main growth generator in this Division was RTF
(Ready-to-Fill) syringe systems, sales of which rose by 54%. Production
capacity for RTF syringes is now fully utilised. In order to cover the
sustained high level of demand, a substantial investment is being made in this
Division and a further production line will be commissioned in early 2009.
Growth was also achieved by the Tubular Glass Division in the American market
for pharma-ceutical vials and in the Chinese market. Operating results
(Adjusted EBITDA) improved by 12.4% to EUR19.1m (Q3 2007: EUR17.0m).
    Sales by the Plastic Systems Division increased by 6.2%, or 5.5% on a
like-for-like exchange-rate basis, to EUR87.8m (Q3 2007: EUR82.7m). Adjusted
EBITDA totalled EUR15.4m, 11.6% up on the prior year (EUR13.8m). A
particularly strong contribution to this result was made by the segment of
Medical Plastic Systems, with double-digit growth. Integration of the
companies acquired at the beginning of 2008 in Spain (today Gerresheimer
Zaragoza S.A.) and Brazil (today Gerresheimer Plasticos Sao Paulo Ltda.) has
been successfully completed. Both of the companies made a positive
contribution to the Division's development. In parallel, the sales process for
the segment of Technical Plastic Systems was commenced as part of the
company's concentration strategy, under which the Consumer Health Care segment
which was also not part of the core business was already sold with effect on
June 1, 2008.
    The Moulded Glass Division again achieved above-market-average sales
growth of 5.0%, or 7.7% on a like-for-like exchange-rate basis, to EUR83.7m
(Q3 2007: EUR79.7m). This was attributable in particular to higher sales of
pharmaceutical bottles in the USA and Europe. A further growth contributor was
cosmetic products. Adjusted EBITDA improved by 14.5% to EUR17.4m (prior year:
EUR15.2m).
    Sales by the Life Science Research Division increased markedly by 10.1%
or 26.4% on a like-for-like exchange-rate basis to EUR22.9m (Q3 2007:
EUR20.8m). Adjusted EBITDA of EUR2.9m (Q3 2007: EUR1.8m) even increased by
61.1% compared to prior year.

    Growth despite the financial crisis

    "Supported by the sustained high level of demand for our products and the
stable growth in our core markets of pharma & life science, we confirm our
outlook for the current financial year", says Dr. Axel Herberg. Gerresheimer
continues to forecast a sales growth of 9% to 11%. In terms of operating
results the company expects to achieve an adjusted EBITDA margin of
approximately 19.5%.
    The company will at the same time continue its successful focus on the
markets of pharma & life science. A solid long-term financial structure will
allow it to continue to invest in the core markets in the future.

    About Gerresheimer

    Gerresheimer employs more than 10,000 people in 40 locations in Europe,
America and Asia. In the financial year 2007, worldwide sales totalled
EUR958m. The product portfolio ranges from pharma-ceu-tical 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 Q3: August 31; Financial Year end November 30)

    in EUR million              Q3     Q3 Change  Q1-Q3  Q1-Q3 Change     FY
                              2008   2007      %   2008   2007      %   2007

    Net sales                268.0  250.1   +7.2  783.4  697.4  +12.3  957.7
    Adjusted EBITDA(1)        50.3   44.1  +14.1  146.9  124.4  +18.1  181.6
    in % of net sales         18.8   17.6          18.8   17.8          19.0
    Adjusted EBITA            32.5   26.6  +22.2   92.9   77.3  +20.2  116.6
    in % of net sales         12.1   10.6          11.9   11.1          12.2
    Profit from
     operations (EBIT)       -10.9   11.0          22.5   34.8          53.3
    Net income               -22.8   -5.1         -14.7  -13.1           0.8
    Adjusted net                          (greater             (greater
     income(2)                16.5    7.4 than)100 44.0   16.4 than)100 44.3
    Earnings per share
     in EUR                  -0.73  -0.18         -0.53  -0.46         -0.04
    Adjusted earnings                     (greater             (greater
     per share(3) in EUR      0.52   0.22 than)100 1.34   0.48 than)100 1.34



    Segment Key Figures

    in EUR million              Q3     Q3 Change  Q1-Q3  Q1-Q3 Change     FY
                              2008   2007      %   2008   2007      %   2007

    Tubular Glass
    Net sales                 77.6   68.1  +14.0  221.3  199.0  +11.2  271.2
    Adjusted EBITDA(1)        19.1   17.0  +12.4   54.2   47.8  +13.4   66.7
    Plastic Systems
    Net sales                 87.8   82.7   +6.2  258.6  218.6  +18.3  299.7
    Adjusted EBITDA(1)        15.4   13.8  +11.6   47.4   38.2  +24.1   56.1
    Moulded Glass
    Net sales                 83.7   79.7   +5.0  246.9  234.3   +5.4  318.8
    Adjusted EBITDA(1)        17.4   15.2  +14.5   52.0   45.2  +15.0   65.1
    Life Science
    Research
    Net sales                 22.9   20.8  +10.1   67.3   47.7  +41.1   72.2
    Adjusted EBITDA(1)         2.9    1.8  +61.1    8.0    4.6  +73.9    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
    

    You can download the Group's Key Figures at:
http://www.presseportal.de/pm/9072/gerresheimer_ag/?keygroup=dokument





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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