Tecan records strong operating result in full year 2009
Strong operating profit margin again at 15.2%
The Tecan Group closed full year 2009 with a strong operating result notwithstanding the tough economic environment. At CHF 391.9 million, sales reached approximately the prior-year level (2008: CHF 396.0 million). Sales were 1.0% below the prior-year level in Swiss francs but 0.9% higher in local currency terms. At 15.2%, the operating profit margin was maintained at the previous year's high level, although Tecan made substantial additional investments in innovation projects and entry into new markets. In 2009, Tecan achieved an operating profit (EBIT) of CHF 59.6 million (2008: CHF 60.1 million before impairment charges in Sample Management segment; CHF 31.2 million including impairment charges). Net profit reached CHF 49.3 million (2008: CHF 51.0 million before impairment charges; CHF 25.6 million including impairment charges), the net profit margin amounted to 12.6% of sales (2008: 12.9%; before impairment charges). Earnings per share increased to CHF 4.77, the highest value in Tecan's history (2008: CHF 4.67 before impairment charges; CHF 2.35 including impairment charges). Cash flow from operating activities increased to CHF 66.2 million (2008: CHF 58.9 million), which corresponds to 16.9% of sales. At CHF 385.5 million, order entry was 3.8% below the prior-year result (2008: CHF 407.6 million) in local currency terms. This is attributable to a basis effect from the Sample Management business segment, which recorded a significantly higher order entry in the previous year.
Thomas Bachmann, CEO of Tecan, commented: "We are very pleased to be able to report strong operating results for 2009 in such a tough economic environment. Despite our relevant market being down in the high single digit percent range, we were able to increase sales slightly above the prior-year level in local currency terms. The operating profit margin was maintained at the high level of the previous year. We made company history by setting a record for earnings per share. We recorded strong growth again in the strategically important OEM business and the consumables business.
"In various areas of the life science industry, groundbreaking advances are emerging that are in part only possible thanks to innovative solutions in the field of laboratory automation. Tecan makes above-average investments in research and development in order to safeguard and expand its leading position in the market. Our position of strength means that we are now able to drive forward promising innovation projects in parallel and accelerate the lead time for selected projects. To achieve sustained profitable growth, we will invest at a higher level in innovation and the expansion of our market presence over a limited period of time," Bachmann continued.
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