Covidien net income flat in 2Q despite Confluent sale

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. More

To continue reading this article, please do one of the following.



biotechnology

Covidien net income flat in 2Q despite Confluent sale

COURTESY COVIDIEN PLC
DESPITE THE SALE of its Confluent product line in January, Covidien PLC reported that its net income rose less than 1 percent in its fiscal second quarter. Net sales rose 2.7 percent to $2.6 billion.
Posted 4/25/14

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.

Calendar
PBN Hosted
Events

DEADLINE EXTENDED to Friday, October 3rd for applications for the 14th Annual Business Excellence Awards Program. And save the date for the Awards Dinner - November 12th at the Providence Marriott.
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
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.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement