Slight upturn seen for science-to-solutions provider

FOR many companies, 2009 was a challenging year to do business. All industries and manufacturing machinery and speciality equipment suppliers are taking stock and reviewing their strategy as they go forward. Sartorius Mechatronics, which is among the leading providers of laboratory and process instrumentation and industrial scales, are among these companies. Peter Grimley, vice president-Sales Europe and Asia | Pacific for Sartorius Mechatronics, reviewed what the year has been like. "Amid a climate of pronounced reluctance to invest shared by nearly all customer sectors, the Mechatronics Division reported a steep decline in demand for its products in the reporting year. This impacted its business with industrial weighing and control equipment slightly more than its business with laboratory instruments. By contrast, service business proved to be robust," acknowledged Mr Grimley. "Compared with a year ago, the division's sales revenue dropped 17.9% from 245.6 million euros to 201.7 million euros (currency-adjusted: -19.3%). At 205.9 million euros, order intake was also down 15.2% from 242.7 million euros a year earlier (currency-adjusted: -16.6%). Following an especially steep plunge in first-half demand, business indicated initial signs of recovery at year-end," he said. There's a general sense of optimism in the region's food & beverage manufacturing industry, largely because companies such as Sartorius saw their Asian units perform better in the region than in sluggish or static North American and European markets. "The regional pattern shows that the division's decline in revenue was somewhat less pronounced in Asia|Pacific at a minus of 8.2% (currency-adjusted: -12.7%) than in the regions of North America (-14.4%; currency-adjusted: -19.1%) and Europe (-22.4%; currency-adjusted -21.7%)," Mr Grimley explained. Even so, Mr Grimley said Sartorius Mechatronics' underlying stability helped the division come through in 2009. "Despite the drop in sales, the Mechatronics Division posted slightly positive operating earnings of 0.7 million euros, up from 17.1 million euros a year ago. This increase was due to an extensive restructuring program, which was implemented in the reporting year to adapt the division's structures to the changed market conditions and which reduced its annual cost base by a good 30 million euros. The division's underlying EBITA margin was 0.4% compared with 7.0% for the year-earlier period," he said. Going forward, the 'targetted alliances' are in store that are expected to benefit food & beverage companies as well as pharmaceutical and biotechnology firms, he added. "Sartorius plans to extend its product portfolio in the Mechatronics Division through targeted alliances with external partners from science and industry," Mr Grimley said, but did not elaborate. "For the Mechatronics Division, which is more strongly dependent upon business cycles, management assumes that despite the persistent uncertainty about economic development, there will be a slight upturn," he said. "Against this backdrop, currency-adjusted sales growth is expected in the lower single-digit percentage range. Given the division's significantly reduced cost base as a result of extensive restructuring measures, its operating EBITA margin should attain around 5%."(the end)Nike Air Max 97