STOCKHOLM (Reuters) -Radiation therapy equipment maker Elekta reported on Wednesday a slump in its first-quarter earnings due to higher costs in its supply chain and logistics.
The Swedish group said its fiscal operating profit during May-July fell 40% to 201 million Swedish crowns ($23.07 million) from a year earlier.
“We are experiencing temporary headwinds to our gross margin due to increased supply-chain, logistics and service costs,” Chief Executive Gustaf Salford said in a statement.
“We expect the current supply-chain challenges and the impact on margins to gradually improve.
Elekta said demand was recovering and access to customers was improving particularly in more mature markets.
Sales grew 1%, while order intake dropped 11%. In the year-ago period, Elekta had booked a record big order and the company said orders were up adjusted for it.
($1=8.7109 Swedish crowns)
(Reporting by Anna Ringstrom; Editing by Clarence Fernandez and Sherry Jacob-Phillips)
