A particular focus of the reporting year was on strengthening cash flow. Because of strong operating profit, stringent management of working capital and the factoring program implemented in middle of the reporting year, operating cash flow surged from 53.0 million euros to 143.4 million euros. Accordingly, the key balance sheet ratios and financials were at an overall improved, solid level: the equity ratio was 38.9% (Dec. 31, 2008: 38.5%) and the ratio of net debt to EBITDA was 2.6 (previous year: 2.7).
Research and Development Adapted to Accommodate Market Conditions
In fiscal 2009, Sartorius spent 40.2 million euros on research and development, down from 43.9 million euros a year ago; at 6.7%, its ratio of R&D costs to sales revenue eased slightly from a year earlier. While R&D costs in the Biotechnology Division remained at a constantly high level, R&D spending in the Mechatronics Division was adapted to accommodate the changed market conditions. As in the Biotechnology Division, Sartorius plans to extend its product portfolio in the Mechatronics Division through targeted alliances with external partners from science and industry.
Workforce Reduced by Restructuring in the Mechatronics Division
As of December 31, 2009, the Sartorius Group employed 4,323 people, 337 persons, or -7.2%, fewer than in the previous year. This decrease essentially resulted from the adjustment of personnel capacity in the Mechatronics Division in line with its lower business volume. Together with employee representatives, the company agreed on socially responsible arrangements as far as possible in making the unavoidable cuts in staff costs. The number of employees in the Mechatronics Division dropped from 2,298 to 1,942. In contrast, the Biotechnology Division slightly increased its number of staff 0.8% from 2,362 to 2,381 by the end of 2009.
Dividends Proposed at the Year-Earlier Level
The Supervisory Board and the Executive Board of Sartorius AG will submit a proposal to the Annual General Shareholders ™ Meeting on April 21, 2010, to pay the dividends in the same amounts as in the previous year: 0.42 euro per preference share and 0.40 euro per ordinary share. As a result, the total profit distributed would be 7.0 million euros as in 2008. This dividend proposal mirrors the operating profitability of the past fiscal year and the positive future prospects of the company.
Positive Outlook for Both Group Divisions
For the Biotechnology Division, management expects currency-adjusted sales growth in the upper single-digit range for 2010. This increase is forecasted to comprise strong gains for single-use products and moderate gains for its equipment business. As in 2010 extra business with the vaccine industry is not anticipated and equipment business is likely to contribute a relatively high percentage to sales growth, the division ™s operating EBITA margin is expected to rise rather slightly.
For the Mechatronics Division, which is more strongly dependent upon business cycles, management assumes that despite the persistent uncertainty about economic development, there will be a slight upturn. Against this backdrop, currency-adjusted sales growth is expected in the lower single-digit percentage range. Given the division ™s significantly reduced cost base as a result of extensive restructuring measures, its operating EBITA margin should attain around 5%.
For the entire Group, management accordingly expects sales growth in constant currencies to be slightly above 5% and its operating EBITA margin to continue to improve by one to two percentage points. Furthermore, management anticipates a significantly positive operating cash flow.
Current Image Files:
Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius:
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Sartorius Stedim Biotech delivers innovative systems and solutions for the manufacture of biopharmaceutical medications:
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Sartorius Mechatronics produces weighing and control equipment for laboratory and industrial applications in the food and pharmaceutical industries:
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Upcoming Financial Dates:
April 21, 2010 Annual General Shareholders ™ Meeting in Goettingen, Germany
April 2010 Publication of first-quarter figures (Jan. “ March 2010)
Source Sartorius Group