Getinge profits rise as restructuring push begins to bite

Swedish medical technology group Getinge reported on Friday better than expected third-quarter core profits and repeated its outlook for 2019 of sales growth between 2% to 4%.

By Colm Fulton

STOCKHOLM, Oct 18 (Reuters) - Swedish medical technology group Getinge GETIb.ST reported on Friday better than expected third-quarter core profits and repeated its outlook for 2019 of sales growth between 2% to 4%.

Profit before interest, tax, amortization and items affecting comparability was 677 million Swedish crowns ($69.76 million), up from 438 million crowns in the same period last year, the company said in a statement.

This beat analysts' forecast of 560 million Swedish crowns ($57.70 million), according to Refinitiv data.

"We continue to show strong organic sales growth and improved margins in the third quarter," Getinge Chief Executive Mattias Perjos said.

In April, Getinge unveiled new restructuring measures which it said would improve its earnings in the second half of 2019.

Third-quarter net sales and order intake at the maker of products for surgery, intensive care, infection control and sterilization increased by 4.8% and 3.5%, respectively.

Getinge has reported growth in core profits since the last quarter of 2018, with its long-troubled shares up 69% this year by Thursday's close.

The group has had a few turbulent years, with setbacks ranging from earnings misses to costly quality control problems at plants. It is also subject to a fraud investigation in Brazil and lawsuits in the United States and Canada.

"Operating expenses are reduced sequentially, compared with the preceding quarter, which is a sign that our restructuring measures are starting to show results," said Perjos.

($1=9.6972 Swedish crowns)

(Editing by Clarence Fernandez)

((clarence.fernandez@thomsonreuters.com; +6568703861; RM:clarence.fernandez.thomsonreuters.com@thomsonreuters.net))

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