UPDATE 2-Getinge shares slip on lack of outlook detail

* Q1 pretax 551 bln SEK, above fcast for 504 bln SEK

* CEO flags 5-6 bln SEK for bolt-on acquisitions

* Says share issue to be considered on merit

* Organic sales growth 9 pct

* Shares dip 2 percent

(adds CEO comment from conference call)

STOCKHOLM, April 21 (BestGrowthStock) – Shares in Swedish medical
technology group Getinge (GETIb.ST: ) slipped on Wednesday on what
traders said was an absence of detail in its outlook and a lack
of insight into future acquisition plans.

The group, which sells sterilization and decontamination
equipment, beat forecasts for first-quarter profit (Read more your timing to make a profit.) on Wednesday
and said it would return to strong earnings growth in 2010 after
a weak 2009, thanks partly to higher demand from the United
States and emerging markets.

“The order intake was in line with forecasts … but there
was no real change in the outlook which remains quite cautious,”
said Johan Unnerus at Swedbank. “The focus will now be on the
next acquisition and that can come soon.”

Chief Executive Johan Malmquist said Getinge would keep
making bolt-on acquisitions of smaller firms and had set aside
5-6 billion crowns ($700 million-$840 million) for the purpose.
Previously the company had flagged 4-5 billion for acquisitions.

If the size of an acquisition were to exceed 5-6 billion,
Getinge would consider a share issue based on the quality of the
transaction and its strategic importance, he added.

Getinge shares, which at Tuesday’s close were up 28 percent
since the start of 2010 against a rise in the index of 11
percent (.OMXS30: ), had fallen 2 percent by 1334 GMT.


Getinge does most of its business in Europe, where state
spending on health offers fairly static revenue, but has been
looking to capitalise on healthcare development in Asia and
Latin America to keep up its robust pace of growth.

The group said demand had improved overall in the United
States in the fourth quarter and remained stable in Western
Europe, though sales across the group declined by 5.6 percent to
4.86 billion crowns from the year-ago quarter.

Asked if he could give more specific earnings guidance for
this year, Malmquist said he wanted to remain cautious about the
outlook because the pace of recovery was hard to ascertain.

Organic order intake was in line with forecasts at 5.6
billion crowns, increasing by 9 percent year-on-year although
the comparison benefited from the weak year-ago quarter.

While the financial crisis hurt earnings in 2009, Getinge
had been insulated from the global downturn because many of its
clients were governments and healthcare providers whose spending
on health equipment is relatively stable.

Quarterly pretax earnings rose to 551 million Swedish crowns
($77.04 million), above the 502 million seen in a Reuters poll
of nine analysts, and higher than the 530 million in the
year-ago quarter.

Stock Today

(Editing by David Cowell)

UPDATE 2-Getinge shares slip on lack of outlook detail