Medical device sales boost Covidien; dollar drags down forecast
This article was originally published in Clinica
Executive Summary
Despite making strong revenue growth in its medical devices business, Covidien cut its financial outlook for 2009 due to the negative impact of the strengthening US dollar. The Hamilton, Bermuda-based firm said that it expected sales in fiscal 2009 to grow to a maximum of 3%, down from its previous estimate of 5-8%. For fiscal 2008, the company recorded revenues of $9.9bn, up 11% compared to 2007. This sales growth was helped by a 12% gain in revenue from the firm’s medical device business, which contributed around $6.8bn. The increase in sales had a positive affect on Covidien’s bottom line – the company posted net income of approximately $1.4bn, a marked improvement on the loss of $342m in fiscal 2007.