Covidien's Q4 profits hit by spin-out costs
This article was originally published in Clinica
Executive Summary
Despite recording a 5% increase in group sales for the fourth quarter of fiscal 2007, Covidien was unable to prevent higher-than-expected expenses from impacting overall profits. The company saw total earnings fall from $340m for the same period in 2006 to $34m, after it was hit by $697m worth of selling, general and administrative expenses and $290m of charges related to its spin-out from Tyco International earlier this year (see Clinica No 1244, p 12).