Slow demand hurts Switzerland's Disetronic:
This article was originally published in Clinica
Executive Summary
Continuing poor US demand for insulin pumps, the cost of launching two new products and the weak Euro currency will cut into fourth-quarter profit margins at Disetronic, the company has warned. Operating profit in its core medical technology business is expected to be some 20% lower than the previous year's figure. But the margins will still be higher than in the third quarter, as a result of previous cost-cutting measures, growth of the infusion systems division and a strongly performing injection system division, predicts the Burgdorf, Switzerland company. Consolidated sales for the year ending March 31 2002 are expected to be in the region of SFr340 million ($201 million), in line with forecasts. Based on a positive outlook, the company plans in the coming financial year to use some of its "substantial" liquid reserves to implement share repurchasing.