November 15, 2019 / 9:54 AM / a month ago

Medical equipment firm Elekta warns on full-year profit margin

STOCKHOLM, Nov 15 (Reuters) - Radiation therapy equipment maker Elekta on Friday lowered its profitability guidance for its fiscal full year, sending shares in the Swedish firm tumbling 15%.

Elekta said delayed installation starts and currency translation effects had negatively impacted its earnings before interest, tax and amortisation (EBITA) margin in the three months through October, its fiscal second quarter.

The company said in a statement it therefore now saw an EBITA margin of around 18% in its full year, down from earlier guidance of around 19%. It stood by sales guidance of 8-10%.

“With the already strong installation plan for the second half we do not see a way to fully recover the delayed installations from the second quarter in the rest of the year,” it said.

Elekta, which is scheduled to publish its second-quarter report on Nov. 28, said quarterly EBITA undershot its expectations, dropping to around 540 million crowns ($55.6 mln) from 601 million crowns a year ago, with the margin narrowing to 14.5% from 18.0%.

$1 = 9.7061 Swedish crowns Reporting by Anna Ringstrom; Editng by Emelia Sithole-Matarise

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