Covidien re-states Q1, Q2 financials on specialty chemical sale

June 14, 2010 by MassDevice staff

Covidien plc restates its first-quarter and second-quarter financials as it re-classifies its specialty chemicals business as a discontinued operation.

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Covidien plc (NYSE:COV) restated its financial results for the past two quarters after it re-classified its specialty chemicals business, sold to New Mountain Capital LLC last month, as a discontinued operation.

The Mansfield, Mass.-based medical products conglomerate had posted first-quarter sales of $2.75 billion during the three months ended Dec. 25, 2009. But after deducting $105 million in discontinued sales, the company is reporting Q1 sales of $2.64 billion, down 3.8 percent.

For the second quarter, Covidien said sales were $2.55 billion, down 4.2 percent compared with the $2.66 billion it had previously reported.

Net income and diluted earnings per share for both quarters were not affected by the reclassification.

In May, Covidien inked a deal to sell off its J.T. Baker and Mallinckrodt Laboratory Chemicals brands, which are based in Phillipsburg, N.J., to the New York-based private equity firm for $280 million in cash.