Gerresheimer reports substantial revenues and earnings

Gerresheimer AG, one of the leading worldwide suppliers to the pharma and healthcare industry, remained on its growth path during the second quarter of financial 2010. Our business developed very well…

Gerresheimer AG, one of the leading worldwide suppliers to the pharma and healthcare industry, remained on its growth path during the second quarter of financial 2010. Our business developed very well in the second quarter. The demand for our products in the pharma industry has grown and there has also been an improvement recently in the Cosmetics and Life Science Research businesses, says Uwe Rhrhoff, the new CEO of Gerresheimer AG since 22 June 2010. In the period from March to May 2010, the company increased its revenues (excluding the Technical Plastic Systems business which has been sold) by 6.8% compared with the prior year. At constant exchange rates the growth rate in the second quarter was 5.6%. During the first six months of financial 2010, the revenue growth at constant exchange rates was 3.6%. Revenues in the second quarter totalled EUR 268.8 million (second quarter of 2009 excluding Technical Plastic Systems: EUR 251.6 million). In addition to sales growth in the segment of primary pharmaceutical packaging, Gerresheimer profited from the improvement in the more cyclical Cosmetics and Life Science Research businesses in the second quarter. The operating margin (Adjusted EBITDA margin) improved by 2.9 percentage points on the prior year to 20.9% (Adjusted EBITDA margin first six months 19.2%). As a result of the revenues and margin increase, Adjusted EBITDA improved to EUR 56.3 million (prior year EUR 47.5 million). Profit from operations also improved substantially to EUR 24.8 million (prior year: EUR 11.8 million). Adjusted earnings per share increased significantly from EUR 0.44 to EUR 0.59. We want to remain on our profitable growth path. To this end we will push ahead with the globalization of our business. We therefore want to be an attractive investment for our shareholders and the financial markets. And we take our corporate responsibility towards all stakeholder groups very seriously, says Rhrhoff, outlining his objectives for the company. For financial 2010, Gerresheimer AG continues to expect revenues growth in the pharma business, also supported by the emerging markets. The market trend in the more cyclical segments of Cosmetics and Life Science Research (laboratory glassware) is despite first signs of recovery on the other hand more difficult to assess. On the basis of the good results in the second quarter, Gerresheimer is slightly raising the lower limit of the guidance for the revenues for financial 2010. The company assumes revenues, excluding Technical Plastic Systems and at constant exchange rates, to grow by 3% to 4%, compared with 2% to 4% previously. Due to the stronger US Dollar this equivalents a nominal growth rate of 5% to 6% compared with 2% to 4% previously. The forecast for the Adjusted EBITDA margin is raised to 19.5% to 20% (previously around 19.5%). The planned total volume of investment is confirmed at EUR 75 to 80 million.