October 18, 2016 / 11:10 AM / 2 years ago

Getinge says to spin off and list smallest division as Q3 profit lags

STOCKHOLM, Oct 18 (Reuters) - Swedish medical technology firm Getinge said on Tuesday it planned to spin off and list its smallest division, renamed Patient and Post-Acute Care, as it reported a smaller profit than expected for the third quarter.

“Getinge has decided to focus on two business areas, Acute Care Therapies and Surgical Workflows,” it said in a statement.

“The future listing of Patient & Post-Acute Care will increase the ability of both companies to realise their strategies and to best continue to enhance customer benefits and shareholder value,” it said.

The Patient & Post-Acute Care unit, formerly called Extended Care, would be distributed to shareholders with a listing planned for no later than the first quarter of 2018, the company said.

Getinge said separately that operating profit before amortisation and extraordinary costs rose to 963 million crowns ($109.3 million) in the third quarter from a year-ago 828 million. The mean forecast in a Reuters poll was for a profit of 1.00 billion crowns.

The company lowered its full-year sales outlook to a forecast of moderately negative organic sales development, from previously expecting moderate growth, and said costs for an ongoing restructuring programme would be higher this year than previously guided.

$1 = 8.8120 Swedish crowns Reporting by Anna Ringstrom; editing by Niklas Pollard

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