Global health cuts on the way, says Hartmann

Hartmann1The Hartmann Group  – which bases many of its products on nonwoven fabrics – continued its strong performance in the first quarter of 2010, despite deeper budget cuts and increasing price pressures in national healthcare systems.
The German healthcare company recorded sales growth of 4.4% compared to the same quarter in 2009, to €393.4 million, and consolidated operating profit up by 37.9% to €20.5 million.
With an increase in sales of 5.1%, the three medical core segments contributed significantly to total sales growth.
In the Wound Management segment, sales revenues were €106.3 million, an increase of 4.7%. Growth drivers were the ranges of modern wound management and post-operative dressings.
In the Incontinence Management segment, sales revenues rose by 4.9% to €144. million with product systems worn close to the body particularly contributing to growth.
The Infection Management segment increased sales revenues by 6% to €83.4 million, with rowth in custom procedure trays, surgical clothing and disinfectants.
The share of the medical core segments in total sales increased by 0.5% to 84.8%.
As of March 31 2010, the Hartmann Group had 9,677 employees – an increase of 162 employees compared to the end of 2009. This change is mainly based on the expansion of manufacturing capacity in India and China.
Hartmann assumes that the market environment will be more competitive in the current year. Due to the high debts of many countries, the company expects deeper budget cuts in the national healthcare systems and resulting price pressures.
In addition, the company finds itself increasingly confronted by rising raw material prices.
“Nevertheless, we expect our medical core segments to continue to grow profitably in 2010,” said Dr Rinaldo Riguzzi, CEO of the Hartmann Group. “The implementation of the Hartmann 2011 programme will help us to realise productivity potential in all internal processes. The company is cautiously optimistic that it will further increase its consolidated operating profit in 2010.”

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