Covidien‘s (COV) medical device division continued to outpace the medical products conglomerate’s other segments during the fourth quarter and fiscal 2009.
The Mansfield, Mass.-based monolith reported sales of $10.68 billion for the full year, up 3.1 percent compared with $10.36 billion during fiscal 2008. Net income slumped 33.4 percent to $907 million, compared with $1.36 billion last year.
The medical device segment’s $6.06 billion in annual sales, about 57 percent of total revenues, marked an increase of 2.5 percent compared with $5.91 billion during fiscal 2008. The impact of the weak dollar slowed the division’s sales growth rate by about 6 percent during the year. The segment fared well domestically, with U.S. sales up 9.2 percent to $2.53 billion for the year, while international sales were down 1.8 percent to $3.53 billion.
Covidien’s fourth-quarter sales echoed the annual trends, staying flat at $2.7 billion for the three months ended Sept. 25 compared with $2.69 billion during the same period last year. Overall Q4 net income plunged 86.3 percent to $56 million, compared with $409 million during the fourth quarter of fiscal 2008.
The medical devices division posted $1.63 billion in Q4 sales, up 7 percent compared with $1.52 billion during the same period last year. Sale in the U.S. were up 12 percent, to $670 million, and international sales were up 3.8 percent to $957 million.
Chairman, president and CEO Richard Meelia said the company upgraded its guidance for fiscal 2010, based on “the weakening of the U.S. dollar, the acquisition of Aspect Medical Systems and the FDA’s recent approval of two important new products in our pharmaceuticals business.”
Covidien estimated that fiscal 2010 sales would be up 6 percent to 9 percent over fiscal 2009, including foreign exchange rates but excluding sales of oxycodone hydrochloride extended-release tablets, a generic Oxycontin equivalent (that’s thanks to the settlement of a patent infringement lawsuit with Perdue Pharma LP that saw Covidien agree to stop selling the painkiller). For the medical devices division, the company predicted a net sales increase of 9 percent to 12 percent.