Elekta: Profit Warns due to weak US president leaves … (Continued) – Dagens Industri

Elekta: Profit Warns due to weak US president leaves … (Continued)

                  2015-05-13 07:54
             

 (Adds details of the company's previous outlook of paragraph eight  and paragraph ten)       (SIX) Medical technology company Elekta profit warning for the company  upcoming annual reporting, which is scheduled for June 2nd. Meanwhile  announces that CEO Niklas Savander leave the company with immediate  effect and former CEO and current board member Tomas  Puusepp stepping in as CEO.       It is clear from a press release.       Elekta announced that earnings for the period May-April 2014/2015 was  "Substantially below guidance", mainly due to a weak performance  in the United States. The result was also affected by delays in deliveries from  order backlog, particularly in emerging markets, as a result of  market conditions, political developments, wars and unrest.       Increased risk has resulted in a bad debt loss of SEK 58 million during  the fourth quarter, mainly from projects in Iraq and Libya. Provisions  for doubtful receivables  increased by SEK 100 million to about 150  million.       The company has also made a careful evaluation of the risks to  order backlog and, as a result of this examination, canceled orders worth  approximately 700 million. This is related to projects in  North America where consolidation of hospitals has led to canceled  orders, as well as projects in Latin America and India, which are not developed in  desired pace and not expected to be completed within a reasonable time, mainly  Because of funding difficulties for customers.       The preliminary order bookings amounted to 11.9 billion crowns  (12,253), a decrease of 3 percent. Based on unchanged  exchange rates, the decrease 13 percent       Preliminary net sales amounted to 10.8 billion crowns  (10,694), representing a decrease of 1 percent. Calculated on  unchanged exchange rates, the decrease of 8 percent.       Elekta had in its forecast from the third quarter, previously estimated  that net  sales would increase by 4 percent based on unchanged  Exchange Rates.       EBITA is expected to amount to approximately 1,400 million,  before non-recurring items, which are adversely affected by the  net sales decreased. Non-recurring items amounted to  -158 Million.       Elekta had in its forecast from the third quarter, previously estimated  To EBITA before non-recurring items would increase by about 6 percent  at constant exchange rates. The preliminary EBITA for  year equivalent, including exchange rate changes, a decline of 36  percent.       Preliminary cash flow after operating investments amounted to 800  million (494). The improvement is mainly due to a decrease  working capital.       The company points out that the figures are preliminary and have not yet  audited yet, and may differ from the  final figures in the interim report published June 2  2015th       Elekta will host a conference call at 10:00 to 10:45 the  May 13 the  Chairman Laurent Leksell, President and CEO  Puusepp and CFO Håkan Bergström.      Anna Sundström  mailto: anna.sundstrom@six-group.se  www.blogg.six.seSIXNews  SIX News    Magnus Bernet +46 8586163 85  mailto: magnus.bernet@six-group.se  www.blogg.six.seSIXNews  SIX News