June 11, 2020 / 5:39 AM / a month ago

Sweden's Arjo expects operating profit to rise more than 30% in Q2

STOCKHOLM, June 11 (Reuters) - Swedish medical equipment supplier Arjo expects second-quarter operating earnings to rise more than 30% year-on-year, significantly better than market forecasts, it said in a statement on Thursday.

Arjo said the expected profit rise was driven by “solid profitability within rental operations, good cost control throughout the value chain and some positive currency effects”.

The company, which makes products such as medical beds and diagnostics gear, said quarterly sales were expected to be flat compared with the second quarter 2019, but strengthen in the second half of the year as pandemic restrictions in many countries are eased.

“In light of this, Arjo expects a gradually increased growth where the organic net sales growth for the third and fourth quarters, respectively, is expected to be within the 2-4% target interval”.

Arjo said it was currently seeing strong sales of medical beds, and good demand within its rental operations as well as in its diagnostics business.

The company reports second-quarter results on July 17. (Reporting by Johannes Hellstrom)

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