Covidien Reports First-Quarter 2015 Results

DUBLIN, Ireland--(BUSINESS WIRE)--Jan. 22, 2015-- Covidien plc (NYSE: COV) today announced financial results for the first quarter of fiscal 2015. First-quarter net sales of $2.69 billion increased 2% from the $2.64 billion in the first quarter a year ago. Operational sales growth in the quarter was 6%, as foreign exchange rate movement lowered ...

DUBLIN, Ireland--(BUSINESS WIRE)--Jan. 22, 2015-- Covidien plc (NYSE: COV) today announced financial results for the first quarter of fiscal 2015. First-quarter net sales of $2.69 billion increased 2% from the $2.64 billion in the first quarter a year ago. Operational sales growth in the quarter was 6%, as foreign exchange rate movement lowered the quarterly sales growth rate by four percentage points.

Sales for the company’s Medical Devices segment of $2.28 billion in the first quarter of fiscal 2015 were 1% higher than the $2.25 billion in the comparable quarter of last year. Operational sales growth for the Medical Devices segment was 6%, as foreign exchange rate movement reduced the quarterly sales growth rate by five percentage points. The company’s Medical Supplies segment also posted strong results, achieving 5% sales growth.

“We continued to perform strongly during the quarter, driven by considerable growth in Surgical Solutions, our largest product category, as well as important new offerings and a sustained focus on productivity improvement,” said José E. Almeida, chairman, president and CEO, Covidien. “We expect to maintain this solid performance as we continue to invest in and execute our global strategy.”

Covidien continued to execute on its strategy of innovation, customer-focused portfolio management, emerging markets growth and driving operational leverage. Recent highlights include:

  • Receiving CE Mark approval for its Stellarex™ drug-coated angioplasty balloon for the treatment of peripheral arterial disease, and for its Nellcor™ Bedside SpO2 Patient Monitoring System, PM100N pulse oximetry monitor designed for home care.
  • Gaining U.S. Food and Drug Administration 510(k) clearance for its Fortrex™ over-the-wire balloon catheter, a high pressure solution to maintain arteriovenous access.
  • Announcing 12-month DEFINITIVE AR study results regarding the effectiveness of plaque removal using directional atherectomy followed by drug coated balloon.
  • Having the company’s Solitaire™ stent thrombectomy device featured in the landmark MR CLEAN study, which showed that stent thrombectomy provided a significant clinical benefit when compared to pharmaceutical treatment alone for patients suffering an acute ischemic stroke.

Diluted GAAP earnings per share were $1.12 in the first quarter of 2015, versus $0.87 per share in the comparable quarter last year. First-quarter 2015 adjusted diluted earnings per share, excluding the specified items shown on the attached tables containing non-GAAP reconciliations, were $1.11, up 11% versus $1.00 a year ago.

ABOUT COVIDIEN

Covidien is a global health care leader that understands the challenges faced by providers and their patients and works to address them with innovative medical technology solutions and patient care products. Inspired by patients and caregivers, Covidien’s team of dedicated professionals is privileged to help save and improve lives around the world. With more than 39,000 employees, Covidien operates in 150-plus countries and had 2014 revenue of $10.7 billion. To learn more about our business visit www.covidien.com or follow us on Twitter.

NON-GAAP FINANCIAL MEASURES

This press release contains financial measures, including operational growth, adjusted gross margin, adjusted operating income, adjusted earnings per share and adjusted operating margin, which are considered “non-GAAP” financial measures under applicable U.S. Securities and Exchange Commission rules and regulations.

These non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with generally accepted accounting principles (GAAP). The company’s definition of these non-GAAP measures may differ from similarly titled measures used by others.

The non-GAAP financial measures used in this press release adjust for specified items that can be highly variable or difficult to predict. The company generally uses these non-GAAP financial measures to facilitate management’s financial and operational decision-making, including evaluation of Covidien’s historical operating results, comparison to competitors’ operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting Covidien’s business.

Because non-GAAP financial measures exclude the effect of items that will increase or decrease the company’s reported results of operations, management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.

COVIDIEN CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Statements contained in this communication that refer to Covidien’s estimated or anticipated future results or other non-historical facts are forward-looking statements that reflect Covidien’s current perspective of existing trends and information as of the date of this communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. It is important to note that Covidien’s goals and expectations are not predictions of actual performance. Actual results may differ materially from Covidien’s current expectations depending upon a number of factors affecting Covidien’s business. These factors include, among others, competitive factors and market conditions in the industry in which Covidien operates; Covidien’s ability to obtain regulatory approval and customer acceptance of new products, and continued customer acceptance of its existing products; and the other risks identified in Covidien’s periodic filings including its Annual Report on Form 10-K for the fiscal year ended September 26, 2014, and from time to time in Covidien’s other investor communications. We caution you that the foregoing list of important factors is not exclusive. In addition, in light of these risks and uncertainties, the matters referred to in Covidien’s forward-looking statements may not occur. Covidien undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as may be required by law.

NO PROFIT FORECAST / ASSET VALUATIONS

No statement in this communication is intended to constitute a profit forecast for any period, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for Medtronic or Covidien or New Medtronic as appropriate. No statement in this communication constitutes an asset valuation.

Source: www.covidien.com