Elekta AB reported a drop in first-quarter sales and profit margins, setting a challenging backdrop for incoming Chief Executive Jakob Just-Bomholt.
The Swedish medical technology company said on Thursday that reported net sales for the May-July period fell 5% to 3.65 billion Swedish kronor, while its adjusted operating profit margin narrowed to 6.5% from 7.4% a year earlier.
In constant exchange rates, however, sales grew by 3%, driven by strong performance in Europe, the company said.
Elekta attributed the lower adjusted gross margin of 37.0% to negative currency effects and tariff costs.
Just-Bomholt is set to take the helm on Sept. 1, following the departure of the previous CEO in February after the board called for a greater focus on profitability.
The results come after the company in June cancelled 4.9 billion kronor from its order backlog in a move to improve predictability.
"Despite a slight decline in orders during the first quarter, our book-to-bill ratio remains above 1, reflecting a healthy business environment," outgoing CEO Jonas Bolander said in the report.
The company expects continued sales weakness in the U.S. and China in the second quarter but reiterated its full-year outlook for sales growth in constant currency.
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