First-Quarter Figures: Sartorius Off to a Good Start in 2012

Sartorius (FWB:SRT), a leading international laboratory and pharmaceutical equipment provider, started off fiscal 2012 with substantial gains in order intake, sales revenue and earnings. Based on the company's excellent quarterly performance, management confirmed its full-year guidance: "In all divisions and regions, we are well on track. It is also encouraging that we have made such good headway in implementing our investment projects and growth initiatives. We are accordingly confident in looking ahead to the remainder of the year," commented CEO Dr. Joachim Kreuzburg.

Dynamic Growth of Sales Revenue and Order Intake
In the first three months of 2012, Sartorius boosted its sales revenue from the year-earlier quarter by 20.9%, or 18.6% in constant currencies, to 208.1 million euros. The Biohit liquid handling business acquired at the end of 2011 contributed approximately 6 percentage points to this gain. In the same period, order intake rose 13.7%, or 11.4% in constant currencies, to 220.0 million euros.

All three Group divisions fueled this dynamic business performance. The Bioprocess Solutions Division thus significantly increased its sales revenue by 22.6%, or 20.2% in constant currencies, to 115.4 million euros; its order intake climbed 11.9%, or 9.6% in constant currencies, to 123.3 million euros. Demand was strong, especially for single-use products for the manufacture of biopharmaceuticals, such as specialty filters and aseptic bags. The Lab Products & Services Division pushed its first-quarter sales up 20.1%, or 17.4% in constant currencies, to 66.5 million euros, seeing an uptick in order intake of 23.1%, or 20.2% in constant currencies, to 70.9 million euros. Initial consolidation of the Biohit liquid handling business that Sartorius had acquired at the end of 2011 contributed some 19 percentage points to the division’s growth, as expected. Sales revenue for the Industrial Weighing Division improved, also when seen against the backdrop of a moderate year-earlier revenue base, by 16.2%, or 14.6% in constant currencies, to 26.2 million euros, while its order intake at 25.8 million euros was nearly at the previous year’s level (currency-adjusted: -0.9%).

This strong business performance was also widely bolstered by the company’s regional segments. In the first quarter, Sartorius grew at double-digit rates in all regions. North America reported the highest growth, where sales were up 25.9%, followed by Asia|Pacific, with sales up 19.1%, and Europe, up 15.5% (all regional figures in constant currencies).

Significant Gains in Earnings

In line with its solid sales performance, Sartorius further boosted its earnings in the first three months of the current fiscal year above the figures reported for the year-earlier quarter. The Group's operating earnings¹⁾ surged by over a third (+33.2%) from 22.8 million euros to 30.4 million euros; the respective margin for the Group climbed from 13.3% to 14.6%. As part of this result, the Bioprocess Solutions Division substantially boosted its operating earnings 31.3% to 20.2 million euros; its respective margin rose from 16.4% to 17.5%. The Lab Products & Services Division increased its operating earnings from 6.8 million euros a year ago to 8.2 million euros, with its margin remaining unchanged at 12.3%. Following a weak comparative quarter a year earlier (0.6 million euros), the Industrial Weighing Division achieved operating earnings of 2.0 million euros; its respective margin jumped sharply from 2.5% to 7.6%.

Including extraordinary items of -3.2 million euros (Q1 2011: +0.3 million euros), Group EBITA soared year on year by 17.3% from 23.1 million euros to 27.2 million euros. These expenses essentially were related to integration of the Biohit liquid handling business, preparations for the transfer of single-use bag manufacture from the USA to Puerto Rico and to various cross-divisional projects. The corresponding EBITA margin was 13.0% (Q1 2011: 13.4%). The Group’s relevant net profit²⁾ soared 34.2% from 10.6 million euros a year ago to 14.2 million euros. The respective earnings per share amounted to 0.83 euros, up from 0.62 euros a year earlier.

Positive Outlook for 2012
Based on the company’s first-quarter performance, management confirms its guidance for sales and earnings growth for the current fiscal year. The company thus anticipates that full-year sales will grow by about 10% in constant currencies. Around five percentage points of this gain are forecast to be generated by the initial consolidation of the Biohit liquid handling business. In addition, management continues to project that operating EBITA will likewise increase by around 10%.

In view of the three divisions, management expects that sales revenue and operating EBITA for the Bioprocess Solutions Division will grow 6% to 8% in constant currencies. For the Lab Products & Services Division, sales revenue is forecasted to increase by around 16% to 20% based on constant currencies, primarily due to initial consolidation of the Biohit liquid handling business. This division’s operating EBITA is projected to rise at roughly the growth rates for sales. Currency-adjusted sales revenue and operating EBITA for the Industrial Weighing Division are expected to show stable development year over year.

Key Figures for the First Quarter of 2012
http://www.sartorius.com/fileadmin/media/global/company/pr_20120424_q1_figures_sag.pdf

¹⁾ Sartorius uses earnings before interest, taxes and amortization (EBITA) as the key profitability measure. To enable a more meaningful comparison with the year-earlier figures, the company reports earnings adjusted for extraordinary items (= operating EBITA or operating earnings) in addition to EBITA.

²⁾ Adjusted consolidated net profit after non-controlling interest, excluding non-cash amortization and valuation of hedging instruments

Current Image Files
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG:
www.sartorius.com/fileadmin/media/global/company/pr_20120419_kreuzburg.jpg

Sartorius products used in the manufacture of medications:
www.sartorius.com/fileadmin/media/global/company/pr_20120419_bioprocess_solutions.jpg

Sartorius products used in laboratory research:
www.sartorius.com/fileadmin/media/global/company/pr_20120419_lab_products_services.jpg

Conference Call and Webcast
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the first-quarter figures with analysts and investors on Tuesday, April 24, 2012, at 3:30 p.m. Central European Time (CET), in a webcast teleconference. You may dial into the teleconference starting at 3:15 p.m. CET at the following numbers:

Germany: +49 (0)69 3807 89637
France: +33 (0)1 70 48 01 63
UK: +44 (0)20 7660 0009
USA: +1 646 254 3373

The dial-in code is as follows: 1756439; to view the webcast, log onto: www.sartorius.com

Upcoming Financial Dates

May 21-22, 2012 Cheuvreux Pan-Europe Forum in London, UK
July 25, 2012 Publication of first-half figures (Jan. – June 2012)

This press release contains statements about the future development of the Sartorius Group. The content of these statements cannot be guaranteed as they are based on assumptions and estimates that harbor certain risks and uncertainties. This is a translation of the original German-language press release. Sartorius shall not assume any liability for the correctness of this translation. The original German press release is the legally binding version. Furthermore, Sartorius reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.

A Profile of Sartorius
The Sartorius Group is a leading international laboratory and process technology provider covering the segments of Bioprocess Solutions, Lab Products & Services and Industrial Weighing. In 2011, the technology group earned sales revenue of 733.1 million euros. Founded in 1870, the Goettingen-based company currently employs more than 5,000 persons. The major areas of activity of its Bioprocess Solutions segment cover filtration, fluid management, fermentation, cell cultivation and purification, and focus on production processes in the biopharmaceutical industry. The Lab Products & Services segment primarily manufactures laboratory instruments and consumables. Industrial Weighing concentrates on weighing, monitoring and control applications in the manufacturing processes of the food, chemical and pharma sectors. Sartorius has its own production facilities in Europe, Asia and America as well as sales subsidiaries and local commercial agencies in more than 110 countries.