Italy's Sorin targets growth through M&A
MILAN, July 30
MILAN, July 30 (Reuters) - Italian biomedical group Sorin plans to focus on growth through mergers and acquisitions, continuing a shift from European markets to emerging markets, the company said as it reported second-quarter earnings on Monday.
"Our focus is moving out of Europe into emerging stories both from a distribution point of view and for mergers and acquisitions," a Sorin representative said in a conference call.
Sorin, which provides equipment for the treatment of cardiovascular disease, suffered a blow to its domestic operations with the twin earthquakes that damaged its Mirandola plant in May. However, the company said on Monday that the cost of the damage is expected to come in at the lower end of estimates and not affect its full-year outlook.
Last month the company estimated that the temporary closure at Mirandola, one of areas that were worst affected by the quakes that struck the Emilia-Romagna region, would dent revenues by between 90 million euros ($110.18 million) and 100 million euros.
"The earthquakes in Emilia-Romagna had a significant impact on our Cardiopulmonary manufacturing site, but ... we are confident of restoring operations fully by the beginning of September," Chairman Rosario Bifulco said.
Sorin's second-quarter revenues fell to 188.2 million euros ($232.80 million), against 191.7 million euros in the previous quarter, with the dip in production at Mirandola denting revenues by about 17 million euros and net profit by 11 million euros.
Analysts said that second-quarter revenue was 4 percent above the consensus forecast, with particularly strong performance from the Cardiopulmonary division in Japan, Canada and emerging markets.
Sorin has been at the centre of attention since Britain's Charterhouse and other industrial investors began courting the company last month. Sources close to the matter said the parties were interested in buying a stake, though no formal offer had been made.