United Kingdom

Elekta core earnings undershoot, says first half of fiscal 2016/17 to be weak

Wednesday, 1 Jun 2016 

Elekta AB : Says board of directors proposes a dividend of sek 0.50 (0.50) per share for fiscal year 2015/16 and that dividend will be divided into two payments from now on . Q4 EBITA, adjusted for non-recurring items and bad debt losses, amounted to SEK 785 m (739). Non-Recurring items was SEK -459 m (-1) and bad debt losses was SEK -43 m (-138) . Q4 net order bookings increased 17 percent to sek 4,520 m (3,856) and increased 16 percent based on constant exchange rate . Reuters poll: Elekta Q4 order bookings were seen at SEK 4,303 million, adjusted EBITA at SEK 905 million, dividend per share SEK 0.72 . Says to further reduce inventories, will undertake temporary reduced production and shipment volume, with a one-off negative revenue impact estimated at about sek 500 m in first half of fiscal year 2016/17 . Says expects a weak result during first half of fiscal year 2016/17 . Says additional expected costs related to transformation are estimated to be approximately SEK 300 m and will be charged as a non-recurring item during fiscal 2016/17 . Says going forward Elekta will not provide a net sales outlook . Says targets for transformation program include reaching an EBIT margin of 20 percent in fiscal year 2017/18 .Says also includes to realize cost reductions of SEK 700 m with full effect from 2017/18.