Eckert & Ziegler's Annual Report 2014: Weak Therapy segment puts a strain on consolidated profit

Press Release

Eckert & Ziegler's Annual Report 2014:
Weak Therapy segment puts a strain on consolidated profit

Berlin, March 26, 2015 - Berlin-based Eckert & Ziegler Strahlen- und Medizintechnik AG (ISIN DE0005659700), a specialist for isotope technology applications in medicine, science and industry, generated earnings of EUR 2.3 million in the 2014 fiscal year, which is 25 % less than in the prior year. The decline in consolidated profit after taxes and minority interests to EUR 6.8 million, or EUR 1.28 per share, was mainly attributable to reduced sales in markets affected by the crises in the Middle East and Ukraine, among others. In addition, the Radiation Therapy segment was negatively impacted by restructuring expenses, tax adjustments and the absence of extraordinary income that had contributed to the prior year's positive result.

While the Radiation Therapy segment's result declined overall by EUR 4.8 million year on year, the rest of the Group reported positive development. The Isotope Products segment increased profits by EUR 0.6 million to EUR 9.6 million. The Radiopharma segment nearly compensated in full for the absence of positive one-off effects from the prior year and generated profit of EUR 0.6 million. The Others segment includes Holding as well as Environmental Services, which was reported separately in the prior year. This segment benefited from the absence of negative one-off effects and was able to cut losses from EUR 3.4 million to EUR 1.0 million.

The Group increased overall sales in 2014 by 9 % to EUR 127.3 million. This development was mainly attributable to organic growth in the Isotope Products segment as well as in the Radiopharma segment. Acquisition-related growth in the Radiation Therapy segment was weaker than expected and sales of existing products also declined in this segment.

Due to lower profits, cash flow from operating activities of EUR 10.7 million is down EUR 4.0 million year on year. Cash outflows from investment activities, which declined by EUR 6.6 million to EUR 10.8 million as a result of fewer acquisitions, provided support in this context. Accordingly, there was less need for financing, so that the Group reduced loans in 2014 by net EUR 4.1 million. Together with the dividend payment of EUR 3.2 million, cash outflows from financing activities amounted to EUR 8.5 million. Cash and cash equivalents stood comfortably at EUR 21.8 million as of the balance sheet date.

In the 2015 fiscal year, sales of more than EUR 133 million are expected and net profit will likely exceed the amount generated in 2013 of EUR 1.71 per share.

The complete annual report is available here:
http://ezag.com/fileadmin/ezag/user-uploads/pdf/financial-reports/euzj14e.pdf

The Executive Board and the Supervisory Board will propose to the Annual General Meeting on June 3, 2015 an unchanged dividend of EUR 0.60 per share.

About Eckert & Ziegler
With more than 700 employees, Eckert & Ziegler Strahlen- und Medizintechnik AG (ISIN DE0005659700) is one of the world's largest providers of isotope technology components for radiation therapy and nuclear medicine.
Contributing to saving lives

For enquiries please contact:
Eckert & Ziegler AG, Karolin Riehle, Investor Relations
Robert-Rössle-Str. 10, 13125 Berlin, Germany
Tel.: +49 (0) 30 / 94 10 84-138, karolin.riehle@ezag.de, www.ezag.de