(Reuters) -Swedish medical equipment maker Getinge reported third-quarter core earnings above market expectations on Tuesday, supported by price hikes and cost saving measures meant to combat a hit
Getinge Surpasses Profit Expectations Despite Tariff Challenges
Getinge's Financial Performance Overview
(Reuters) -Swedish medical equipment maker Getinge reported third-quarter core earnings above market expectations on Tuesday, supported by price hikes and cost saving measures meant to combat a hit from U.S. tariffs and negative currency exchange effects.
Earnings Growth and Market Expectations
Getinge's adjusted earnings before interest, taxes and amortisation (EBITA) grew 19% to 1.08 billion Swedish crowns ($114.7 million in the quarter. Analysts were expecting 1.02 billion crowns on average, a company-provided poll showed.
Impact of Tariffs and Currency Costs
The earnings included tariff and currency exchange costs that were 236 million crowns higher than last year, of which Getinge needs to absorb a large share in the short term before the increased prices fully show in the results, the company said.
Challenges in the Medical Technology Sector
The maker of products for surgery, intensive care and sterilisation has said that U.S. import duties on medical equipment will ultimately affect hospitals and patients the most, as most manufacturers raise their prices to pay for the tariffs on imported products or their components.
"Intensified efforts to improve cost efficiency and boost productivity are generating results and in general, we are successful at keeping material cost development under control," CEO Mattias Perjos said in a statement.
However, the medical technology sector remains under pressure. Last month, the U.S. launched a national security investigation into imports of medical devices and industrial machinery, including items like infusion pumps, hospital beds and surgical instruments, which could lead to higher tariffs, raising costs and reshaping supply chains in the healthcare and technology sectors.
($1 = 9.4155 Swedish crowns)
(Reporting by Marta Frackowiak in Gdansk; Editing by Milla Nissi-Prussak)
