Eckert & Ziegler back on track

19-Aug-2013 - Germany

Eckert & Ziegler AG performed much better in April through June than in the first quarter. Sales increased by 9 % and profit for the period more than doubled.

At € 55.3 million, sales for the first half of the year are, however, down 4 % year on year due to the weak start to the year. This was largely due to changes in organic sales. Sales dropped considerably in the Radiation Therapy segment due to expectedly sluggish sales of tumor irradiation equipment, the price drops in the prostate implant product category and the disposal of the unprofitable accessories business. Sales in the largest segment, Isotope Products, however, were only down minimally year on year. Overall, there are clear signs of a positive trend for the second half of the year as the company’s order books are full.

At € 6.9 million, EBIT in the first half of 2013 is down 31 % year on year. This is also due to the weak start to the year. In the Environmental Services segment, governmental price increases resulted in an adjustment in provisions for environmental restoration. The Radiopharma segment reported a rise in the share of low-margin sales (merchandise) and fewer development costs were capitalized. These were offset by extraordinary income in the Radiation Therapy segment (agreement with Core Oncology to repay a loan) and in the Isotope Products segment (court ruling on the reimbursement of disposal costs).

Profits after taxes and minority interests amounted to € 4.0 million, or € 0.75 per share, at the end of the first half of the year, down 27 % year on year. This decline is less than that seen with EBIT due to lower interest payments and a drop in the tax rate.

The Group expects sales to grow to around € 125 million for the financial year 2013 and net earnings after taxes and minority interests in the sum of € 2.15 per share.

https://www.analytica-world.com/en/news/144552/eckert-ziegler-back-on-track.html