SRT Sartorius AG

Today Sartorius (FWB:SRT), a leading international laboratory and process technology provider, published its nine-month results for 2010. Both Group divisions posted strong gains in order intake, reporting a solid order backlog in light of the last quarter of this year. Sales revenue also showed strong development that was reflected by the overproportionate increase in operating earnings, which were around a third higher than a year ago. On the basis of these positive results, management reaffirms its 2010 growth forecast for the Group and has slightly raised its profit guidance for the full year.

Business Development of Both Group Divisions

Sartorius Stedim Biotech

The Biotechnology Division, which operates under the name of Sartorius Stedim Biotech, increased its order intake in the first nine months by 9.1% (constant currencies: +6.4%) to 330.9 million euros, up from 303.4 million euros a year earlier. Sales revenue rose in the same period by 7.0% (constant currencies: +4.6%) to 318.8 million euros from 298.0 million euros a year ago. As expected, orders for bioreactors and other biotechnological production systems, defined as equipment business, from the Asia/Pacific region in particular contributed to the positive development of order intake, where currently the pharmaceutical industry is strongly investing in setting up new plant equipment. Also, business with single-use products for biopharmaceutical manufacturing again proved to be a growth driver; the highest growth rates were generated by this segment in North America and Asia/Pacific. In Europe, growth turned out to be more moderate. However, development in this region is impacted by the extra year-earlier revenue that the division had earned in connection with the swine flu in 2009.

The Biotechnology Division increased its operating earnings (earnings before interest, taxes and amortization and adjusted for extraordinary expenses = underlying EBITA) from 46.3 million euros a year ago to 50.1 million euros. Its respective margin improved from 15.5% to 15.7%.

Sartorius Mechatronics

In the first nine months of 2010, the Mechatronics Division received orders valued at 177.4 million euros, up from 151.4 million euros a year earlier. Thus, the division considerably boosted its order intake by 17.2% (constant currencies: +14.1%) over its weak year-earlier figure that was due to the crisis. The Mechatronics Division’s sales revenue also recovered significantly by 11.4%, rising from 146.8 million euros to 163.6 million euros (constant currencies: +8.5%). Both its laboratory products and its industrial weighing and control technology products contributed to this positive development. In addition, substantial growth momentum was generated by all the division’s business regions; the highest rates of increase were reported in the Asia/Pacific region.

At 8.8 million euros, the Mechatronics Division achieved significantly positive operating earnings (underlying EBITA) during the first nine months of the year following an operating loss of 2.4 million in the year-earlier period. The division’s respective margin improved from -1.6% to 5.4%.

“It is encouraging that business is continuing to recover in our Mechatronics Division. In addition to the substantially improved economic environment, our extensive restructuring program decisively contributed to the positive earnings development reported by this division. We are continuing to focus on executing the strategic realignment of this division and are now setting the course for future sales and profit growth,” commented CEO Dr. Joachim Kreuzburg.

Business Development of the Sartorius Group

On the whole, the Sartorius Group received orders valued at 508.3 million euros in the first nine months, up from 454.8 million euros a year earlier. This equates to a gain of 11.8% (constant currencies: +9.0%). Consolidated nine-month sales revenue rose 8.5% (constant currencies: +5.9%) to 482.3 million euros, up from 444.7 million euros a year ago. From January to September, the Group’s operating earnings (underlying EBITA) surged 34.1% from 43.9 million euros to 58.9 million euros. Accordingly, its respective margin improved from 9.9% a year earlier to 12.2%. The Group’s relevant net profit totals 26.4 million euros, up from 13.9 million euros a year ago. This profit is calculated by excluding extraordinary expenses (3.3 million euros; previous year: 24.7 million euros) and non-cash amortization (5.3 million euros; previous year: 5.3 million euros). The corresponding earnings per share amount to 1.55 euros, up from 0.81 euro in the year before.

Moreover, the Group achieved a significantly positive cash flow from operating activities at 60.8 million euros. The even higher year-earlier figure of 104.8 million euros was impacted by positive one-time items, in particular by around 36 million euros from the international factoring program initially implemented in the previous period.

Outlook for the Sartorius Group

Based on the company’s nine-month results, management reaffirms its growth forecast for the full year of 2010 and has slightly raised its profit guidance. Accordingly, the company expects that in constant currencies, sales revenue at Group level will be slightly above 5%. Concerning profitability, management now expects that the operating EBITA margin will improve by around 2.5 percentage points, after having anticipated so far that this margin would improve by one to two percentage points. Furthermore, management’s forecast of achieving a significantly positive operating cash flow remains unchanged.

"With regard to all key financials, 2010 will be a successful year for the Sartorius Group in all probability. Working from this basis, we will fully concentrate on achieving further growth in sales revenue and profit. In this effort, new products and operational excellence will play an important role, but so will opening up new strategic business fields," said Dr. Kreuzburg. "For this reason, we are also exploring options for further developing our Group organization with respect to its efficiency and flexibility, such as moving in the direction of a holding structure."

Key Figures at a Glance

€ in millions(unless

otherwise

specified)

  Sartorius Group   Biotechnology Division   Mechatronics Division   9   9   Change   9   9   Change   9   9   Change months months in % months months in % months months in %     2010   2009       2010   2009       2010   2009     Order intake   508.3   454.8   11.8   330.9   303.4   9.1   177.4   151.4   17.2 Sales revenue   482.3   444.7   8.5   318.8   298.0   7.0   163.6   146.8   11.4 Operating earnings

(underlying EBITA)1)

  58.9   43.9   34.1   50.1   46.3   8.1   8.8   -2.4     EBITA margin)   12.2%   9.9%       15.7%   15.5%       5.4%   -1.6%     Extraordinary expenses   3.3   24.7                             Net profit)2)   26.4   13.9   90.8                         Earnings per share1)2) in €   1.55   0.81   90.8                          

1) Adjusted for extraordinary items

2) Excluding non-cash expenses for amortization and, in 2009, additionally excluding interest for share price warrants

 

Current Image Files:

Dr. Joachim Kreuzburg, Sartorius CEO and Executive Board Chairman of Sartorius: http://www.sartorius.com/media/content/press/support/Dr_Kreuzburg_4.jpg

Biotechnology Division/Sartorius Stedim Biotech: http://www.sartorius.com/media/content/press/support/SSB_Integrated_Solutions.jpg

Mechatronics Division: http://www.sartorius.com/media/content/press/support/Sartorius_Kontrolltechnik.jpg

Conference Call and Webcast:

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius, will discuss the nine-month figures with analysts and investors on Friday, October 22, 2010, at 2:00 p.m. Central European Time (CET), in a webcast teleconference. You may dial into the teleconference starting at 1:45 p.m. CET at the following numbers:

Germany: +49 (0)69 2222 2245France: +33 (0)1 70 99 42 66UK: +44 (0)20 7138 0825USA: +1 212 444 0481The dial-in code is as follows: 4240400; to view the webcast, log onto: www.sartorius.com

Upcoming Financial Date:

February 2011 Publication of the preliminary business figures for 2010

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 biotechnology and mechatronics. In 2009, the technology group earned sales revenue of 602.1 million euros. Founded in 1870, the Goettingen-based company currently employs approximately 4,350 persons. The major areas of activity in its biotechnology segment focus on filtration, fluid management, fermentation, purification and laboratory applications. In the mechatronics segment, the company primarily manufactures equipment and systems featuring weighing, measurement and automation technology for laboratory and industrial applications. Key Sartorius customers are from the pharmaceutical, chemical and food and beverage industries and from numerous research and educational institutes of the public sector. 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.