Össur, Reykjavik, Iceland, reported that its third quarter 2012 sales were US $99 million compared to US $101 million in the third quarter of 2011. Sales continue to be affected by a slowdown in prosthetics sales in the United States due to ongoing audits by Recovery Audit Contractors. Overall sales growth in bracing and supports increased 3 percent while prosthetics sales did not increase, both measured in Icelandic Kroner. Regionally, Asia realized 24 percent sales growth, measured in Icelandic Kronur.
According to a company press release, despite the change in the product mix and slow sales, the gross margin remains stable, demonstrating the success of the manufacturing in Mexico and other lean initiatives within manufacturing and operations. Gross profit was US $62 million or 63 percent of sales and net profit was US $9.887 million or 10 percent of sales, both the same corresponding ratio as in the third quarter of 2011.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to US $18 million, or19 percent of sales, down from 20 percent in the third quarter of 2011.
“The results of the third quarter are below our expectations and will therefore affect the expected results for the full year 2012,” said Jón Sigurðsson, president and CEO of Össur. “This is mainly due to effects from reimbursement audits in Americas which have had a more profound impact than management anticipated.”
Össur said it has revised sales growth from an expected 4 to 6 percent earlier in the year to 2 to 3 percent and EBITDA from 20 to 21 percent to 18 to 19 percent.
