Sorin revenues down in 2012
For the year 2012, Sorin has reported revenues of EUR 731.1 million, a 1.7 per cent decrease (as reported) compared with 2011. Revenues of the product segments not impacted by the earthquakes increased by 5.3 per cent (as reported) or by 2.0 per cent at constant foreign exchanges over 2011.
Gross profit in 2012 was EUR 443.0 million, or 60.6 per cent of revenues, compared with 60.2 per cent of revenues in 2011. This improvement is mostly driven by a favourable product mix and ongoing manufacturing efficiency gains. Selling, general and administrative expenses were EUR 309.6 million compared with EUR 290.1 million in 2011. Notwithstanding the earthquakes and in order to preserve the company's ability to accelerate its recovery plan, Sorin did not reduce its sales and marketing activities in the cardiopulmonary business unit during the year. R&D expenses were EUR 75.4 million compared with EUR 70.1 million in 2011.
EBITDA was EUR 101.8 million compared with EUR 128.3 million in 2011. The company estimates that the earthquakes had a negative impact on EBITDA of approximately EUR 31 million for the full year of 2012. EBIT was EUR 36.9 million compared with EUR 87.2 million in 2011. EBIT before special items was EUR 58.0 million (EUR 87.4 million in 2011). Special items, totalling EUR 21.0 million for 2012, include restructuring charges for EUR 7.9 million, non-recurring charges related to the earthquakes for EUR 13.3 million and extraordinary expenses related to the write-off of in-process R&D for EUR 7.5 million, partly balanced by the partial recovery from insurance coverage for the earthquakes of EUR 13.75 million. The remaining non-recurring charges refer to business development activities and legal costs. As a subsequent event to the fourth quarter 2012 and 2012 preliminary results, the company recorded as special item a EUR 0.8 million charge following a voluntary field action on a discontinued product.