October 18, 2016 / 1:36 PM / 9 months ago

UPDATE 1-Medical technology firm Getinge to list smallest unit as profit lags again

3 Min Read

* Plans Patient & Post-Acute Care listing by Q1 2018

* Lifts some investor uncertainty around strategy

* Shares up 4 pct

* Q3 core profit 963 mln SEK vs consensus 1.00 bln (Adds detail, background, share reaction)

By Anna Ringstrom and Rebecka Roos

STOCKHOLM, Oct 18 (Reuters) - Swedish medical technology firm Getinge plans to list its smallest division Patient and Post-Acute Care, it said on Tuesday, sending its shares higher even as profits missed expectations for a sixth straight quarter.

Getinge, which makes equipment for surgery and intensive care, has had a turbulent few months. It fired its chief executive in August after only 17 months in the job citing strategic difference and is under investigation by U.S. authorities into quality controls at its plants.

While a new top executive has yet to be appointed, the spin-off offered insight into the group's strategic direction and shares were up 4.2 percent at 1253 GMT, outperforming the STOXX Europe health care index.

"Getinge has decided to focus on two business areas, Acute Care Therapies and Surgical Workflows," it said in a statement.

"The future listing of Patient & Post-Acute Care will increase the ability of both companies to realise their strategies," it added.

It plans to list the Patient and Post-Acute Care unit, which makes equipment for lifting and transporting patients, no later than the first quarter of 2018.

"The new structure opens up for faster change and rationalisation processes, so I see this as clearly positive," said Johan Unnerus, analyst at Swedbank.

Getinge reported third-quarter operating profit before amortisation and extraordinary costs of 963 million crowns ($109 million), up from 828 million a year ago but below a Reuters poll forecast of 1 billion.

The company also forecast "moderately negative" organic sales development this year versus a previous forecast for moderate growth and said costs for an ongoing restructuring programme would be higher this year than previously guided.

Getinge launched the restructuring scheme in September last year to address years of margin pressure due to slower growth, price pressure and quality problems.

$1 = 8.8120 Swedish crowns Reporting by Anna Ringstrom

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below