MANSFIELD – Global biotech firm Covidien PLC reported Friday that its net income rose five-tenths of a percent in its fiscal second quarter, totaling $441 million, or 97 cents per diluted share, compared with $439 million, or 92 cents per diluted share, during the same period a year earlier.
Net sales also improved during the three-month period ended March 28, climbing 2.7 percent to $2.6 billion from $2.5 billion in the second quarter of fiscal 2013.
The second quarter included the sale in January of Covidien’s Confluent biosurgery product line to Integra LifeSciences Corp., which resulted in a net gain of $111 million for Covidien. However, Covidien lost the income that previously had been generated by Confluent, which in the second quarter of fiscal 2013 totaled $59 million.
Discounting the Confluent income from the fiscal 2013 second quarter, Covidien improved its bottom line 16 percent, rather than the half a percent increase it did report under GAAP rules.
Covidien performed less well on a fiscal 2014 year-to-date basis. Although net sales increased 2.7 percent to $5.2 billion in the six months ended in March, net income dropped 10 percent to $839 million, or $1.84 per diluted share, compared with $932 million, or $1.96 per diluted share, for the same six-month period in fiscal 2013.
“As we continue to invest in and execute our global strategy, we are seeing results in line with our year-to-date expectations,” said José E. Almeida, chairman, president and CEO of Covidien. The medical device tax and unfavorable foreign currency exchange were among the factors impacting the year-to-date net income, he said.
By segment, Covidien’s medical device sales rose 2.6 percent in the fiscal second quarter to $2.2 billion, up from $2.1 billion in the second quarter of fiscal 2013. Medical supplies sales also increased slightly, from $387 million to $399 million, an increase of 3.1 percent.
Sales in the United States rose 1.6 percent during the quarter, totaling $1.28 billion compared with $1.26 billion the year prior. Sales in Western Europe, Japan, Canada, Australia and New Zealand climbed 1.8 percent to $938 million while emerging market sales rose 8.8 percent to $383 million.
Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.