Business review January–March 2021

Prior to the outbreak of the COVID-19 pandemic, industry experts estimated that the global medical X-ray imaging equipment market would grow at an average rate of about 5% per annum, the security segment by 6%, and the industrial sector by about 5%. According to Detection Technology, the medical and industrial markets are growing in line with the estimates by the experts, but the market disturbance caused by the pandemic will continue to affect the security market, which will decrease in H1 of 2021, and take an upward turn in H2.

Business outlook

Detection Technology expects total net sales to grow double-digit in Q2 and in H2 of 2021. The company anticipates demand in medical CT applications to increase and MBU sales to grow more in Q2 and H2 than in Q1. IBU sales is expected to be at the same level as in the comparison period in Q2 but to grow in H2. SBU sales will head for growth in late Q2 and will grow in H2, but demand is characterized by uncertainty.

The COVID-19 pandemic has created extraordinary and temporary uncertainty for the global economy and the company’s business in particular in the security application markets, and the demand forecasting in the company’s target markets is still lower than usual. Detection Technology aims to increase sales by at least 10% per annum and to achieve an operating margin at or above 15% in the medium term.