Guerbet S.A. announced consolidated earnings results for the six months ended June 30, 2012. For the period, the company reported revenue of EUR 199.2 million against EUR 193.6 million a year ago. Net income was EUR 13.8 million against EUR 8.2 million a year ago. Net debt was EUR 106.5 million against EUR 97.7 million a year ago. Moderate gains in sales for the first half were in line with the strategy adopted at the start of the year to focus on the creation of value as opposed to achieving sales growth at all costs. Europe was the principal driver of this growth with sales up 4.3% while outside Europe sales remained virtually flat (- 0.5%). Dotarem sales worldwide grew 5.6% mainly on the performance of Europe (+8.1%). Xenetix's sales revenue declined 1.2% while volume sales rose 2.9%. Sales for this product were down both in Europe (-1.1%) and outside Europe (-1.3%). The good performance for operating profit reflects firstly the impact of efforts to contain operating expenses, reduced significantly from 2011, and then a steady performance for the gross margin, despite rising raw material costs. Net Income was also up, despite rising borrowing costs and an automatic rise in corporate income tax. The significant growth in operating profit limited the increase in net debt, despite rising inventories adversely affecting working capital requirements. The company provided earnings guidance for the full year of 2012. For the full year, the trend for sales growth is expected to be confirmed though should remain below 5% at year-end. Capital expenditures will be higher in the second half of the year and relate mainly to the commissioning for operation of the new primary packaging facility at Aulnay-sous-Bois site inaugurated in early July.