Invacare ekes out 2012 profit, despite 'most challenging year'

February 13, 2013 by MassDevice staff

Invacare manages a swing to 2012 black despite what CEO Gerald Blouch called 1 of "the most challenging" in the company's history.

Invacare logo

Invacare (NYSE:IVC) weathered what CEO Gerald Blouch called "1 of the most challenging in the company's history" and managed to eke out a small profit.

But the home healthcare supplies maker still faces stiff headwinds, including the lingering after-effects of an FDA probe that crippled a crucial business segment, a stalled research & development program and downward price pressure from new Medicare competitive bidding rules.

Last year Invacare agreed to a consent decree with the FDA that temporarily shut down 2 facilities and forced the sale of its Invacare Supplies Group division to AssuraMed for $151 million and led to layoffs for more than 140 workers, or about 40% of its total workforce.

Sign up to get our free newsletters delivered right to your inbox

Excluding the divested supplies business, Invacare posted a loss of $7.3 million, or 23¢ per share, on sales of $360.4 million for the 3 months ended Dec. 31, representing a 79.2% increase in losses and a 3.7% sales slide.

For the full year, Invacare logged profits of $1.8 million, or 6¢ per share, on sales of $1.46 billion, compared with losses of $4.1 million (13¢) on sales of $1.50 billion, down 3.1%.