Sales - The second quarter delivered record sales above USD 100 million and 17% sales growth, measured in USD. Sales increased by 10% measured in local currency. All regions and segments contribute to the growth. Total sales amounted to USD 105 million compared to USD 90 million in the second quarter of 2010. Success in bracing and supports in Americas continues while bracing and supports sales in EMEA was weak in the quarter. Overall sales growth of bracing and supports was 16%, measured in local currency. Sales in prosthetics increased by 4% measured in local currency.
Profitability - Consolidation of manufacturing operations impacted profitability in the quarter. EBITDA amounted to USD 20 million or 19% of sales and gross profit amounted to USD 63 million or 60% of sales. Net profit amounted to USD 10 million or 10% of sales.
Jón Sigurðsson, President & CEO, comments:
"The second quarter results are overall good and in line with our guidance for the year. All product segments show decent growth and some markets delivered excellent performance. We continue to gain market share in the bracing and supports segment in Americas, our largest market, and the prosthetics segment in EMEA shows excellent performance across all product segments and regions."
Highlights of the quarter:
Stable flow of new products - Össur's product pipeline has been strong and the healthy flow of new products has been an important contributor to the Company's growth. In the second quarter five new products were launched, two in the bracing and supports segment and three in the prosthetics segment.
Consolidation of manufacturing - One of the most important projects in 2011 is focus on consolidation of manufacturing operations. The new manufacturing facility in Mexico for bracing and supports is progressing well and during 2011 all bracing and supports manufacturing in the US will be moved to the Mexico facility.
Guidance 2011 - Management maintains estimates of local currency organic sales growth for 2011 in the range of 4-6%. Adjusted EBITDA ratio is estimated to be in the range of 20-21% of sales for the year, as reported in the 2010 full year report.
Conference call tomorrow 29 July at 12:00 CET/ 10:00 GMT/ 6:00 EDT
Tomorrow, Friday 29 July 2011 Jón Sigurðsson, President and CEO, and Hjörleifur Pálsson, CFO, will host a conference call for investors, analysts and shareholders presenting and discussing the results of the second quarter of 2011. The conference call will be conducted in English and can be heard on Össur's website: www.ossur.com
To participate in the meeting please call one of the following telephone numbers: Europe: +44 (0)20 3043 2436 or +46 (0)8 505 598 53 The United States: +1 866 458 40 87 Iceland: 800 8660
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