Össur releases second quarter report

Össur has announced a 3% sales growth, measured in Icelandic currency, for the second quarter of 2013, according to a press release.

Sales totaled US $106 million, compared with $103 million in the third quarter of 2012. Gross profit totaled $65 million, or 61% of sales in the third quarter compared to 62% of third quarter sales in 2012. Bracing and support sales were flat, but prosthetic sales grew 6%.

Össur’s cost reduction initiative is expected to reduce costs by $5 million in 2013 and by $8 million in 2014.

Gross profit was $65 million and 61% of sales in the second quarter. Net profit was $8 million, or 8% of sales. Adjusted for one-time expenses, net profit was $12 million and 11% of sales, compared with $10 million and 10% of sales in the second quarter of 2012.

Össur signed an agreement in May to acquire the Swedish O&P provider TeamOlmed for $47 million. The acquisition is expected to close in the third quarter of 2013.

“The results of the second quarter are in line with our expectations. Performance in Europe, the Middle East and Africa is excellent, delivering growth in all product segments and markets,” JónSigurðsson, president and chief executive officer for Össur, stated in the release. “Challenges in Americas continue as previously communicated. Cost reduction initiatives already executed are on track, and we are confident that they will yield the expected results. In May, we signed an agreement to acquire TeamOlmed, and orthotic and prosthetic provider, strengthening our position in the Swedish market.”

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