UPDATE 2-Getinge sharpens 2010 outlook, beats Q2 fcasts

* Getinge CEO says 2010 organic sales growth to match H1

* Q2 pretax 675 mln SEK vs 637 mln seen in Reuters poll

* Q2 order intake 5.6 bln vs 5.6 bln in poll

* Shares up 3.5 pct

(Adds CEO comments, changes lead)

By Nick Vinocur and Sandra Jansson

STOCKHOLM, July 12 (BestGrowthStock) – Medical technology group
Getinge (GETIb.ST: ) flagged organic revenue growth of over 4
percent this year on higher health spending, lifting its shares
after it beat forecasts for second-quarter pretax profit.

The Swedish group, which sells equipment to hospitals around
the world and competes against the healthcare arms of the likes
of Philips Electronics (PHG.AS: ) and General Electric (GE.N: ),
stuck by an upbeat outlook for profit growth on Monday.

It was also more specific in its guidance for organic
revenue and orders this year.

“I would say that the organic revenue growth for the
remainder of the year would be in line with the number we are
seeing for the full six-month period and that we would expect
the order intake to be a number above that,” Chief Executive
Johan Malmquist said in a telephone conference.

Organic sales — which exclude acquisitions and currency
swings — grew by 4.4 percent in the first half, while orders
grew close to 7 percent, Getinge said in a statement.

Demand for Getinge products, which range from mattresses to
life support systems, would improve in the United States and in
emerging markets while in Europe austerity measures were seen
having a limited impact, Malmquist said.

Its shares were up 3.5 percent at 1030 GMT while the wider
Stockholm blue-chip index (.OMXS30: ) was down by 0.5 percent.

“The margins were the biggest surprise, they were a good
deal better than expected,” said Johan Unnerus, analyst at
Swedbank. Another analyst said the group had also reassured
about growth prospects in Europe.

Quarterly pretax profit rose to 675 million crowns ($89.8
million), above the 637 million seen in a Reuters poll of 11
analysts and up from 463 million in the year-ago quarter.

The second-quarter core profit margin (EBITA), before
restructuring costs, was 17.4 percent against an expected 16.9
percent. Organic order intake rose just below 5 percent
year-on-year to 5.6 billion, in line with forecasts.

Getinge is most active in Europe, where public spending on
health offers steady but relatively inflexible revenue, and has
been looking to capitalise on growing healthcare sectors in
emerging markets to maintain its rate of expansion.

Without raising equity, the company has the capacity to
invest about 7 billion crowns in acquisitions and will seek to
solidify its presence in emerging markets, Malmquist said,
without specifying which countries were being targeted.
($1=7.518 Swedish Crown)
(Editing by Michael Shields)

UPDATE 2-Getinge sharpens 2010 outlook, beats Q2 fcasts