Weak results in the U.S. and in emerging markets contributed to a below-expectations performance for radiation oncology firm Elekta in its 2014-2015 fiscal year.
For the period, Elekta had net sales of 10.84 billion Swedish kronor ($1.28 billion U.S.), up 1% before currency adjustments and down 8% after currency adjustments from the 10.69 billion kronor ($1.27 billion) reported in the 2013-2014 fiscal year. The company posted net income of 558 million kronor ($66.2 million), down from 1.2 billion kronor ($136.7 million) a year ago.
In response to the financial performance, Elekta has launched an action program aimed at returning to growth, improving profitability, and reducing costs, while continuing to focus on cash flow. For example, the company is addressing growth and profitability in the U.S. market, according to the vendor.
Results were also below expectations in some emerging markets due to weak market conditions, political developments, war, and civil unrest, Elekta said. However, although market growth has been lower during the past couple of years, the overall demand and underlying medical need for radiation therapy remain healthy, the firm noted.
Earlier in May, Elekta announced that Tomas Puusepp, former president and CEO, would replace Niklas Savander as CEO. As part of its action program, Elekta said it has also made a number of other changes to its organization. Chief Commercial Officer Ian Alexander will now manage all global sales, marketing, service, and customer support activities. This new commercial organization will focus on improving customer service and support, as well as strengthening Elekta's global reach and brand, the company said.
In addition, Chief Operating Officer Johan Sedihn will manage all products and solutions, Elekta said. He will be responsible for the competiveness of the company's products and solutions, R&D, manufacturing and supply chain management, and improving operational effectiveness and cost-efficiency.
Elekta also said that Gilbert Wai, executive vice president of Asia Pacific, and Jay Hoey, executive vice president of North America, have resigned as members of the executive management team. Hoey will take on a new position as head of external relations.
