Covidien plc (NYSE:COV) made up some ground during fiscal 2010, reversing last year’s 33 percent profit slump and then some.
The Mansfield, Mass.-based medical products maker, once again powered by its medical devices unit — Covidien’s largest segment — reported net income of $1.63 billion, or $3.24 per diluted share, on sales of $10.43 billion.
That amounts to top-line growth of 1.6 percent and a bottom-line surge of 81.0 percent, compared with fiscal 2009.
For the fourth quarter, Covidien posted profits of $443.0 million, or 89 cents per diluted share, on sales of $2.67 billion. That compares with profits of $56 million, or 11 cents per diluted share, on sales of $2.59 billion during the same period last year.
Adjusted for a slate of charges logged during Q4 2009, however, EPS rose 18.3 percent to 84 cents during the three months ended Sept. 24, compared with adjusted EPS of 71 cents during same period in 2009. Full-year adjusted EPS reached $3.38, up 21.6 percent compared with adjusted EPS of $2.78 during fiscal 2009.
Chairman, president and CEO Richard Meelia, citing Covidien’s acquisitions of Aspect Medical Systems, ev3 and Somanetics, “all of which are meeting or exceeding our expectations,” said the company also sold off assets to shift resources to faster-growing segments.
“We divested the Specialty Chemicals business, U.S. nuclear pharmacies, and sleep and oxygen product lines, reallocating resources to faster growing areas of our business,” Meelia said in prepared remarks. “Although the market environment remains challenging, we are confident that our robust pipeline of new offerings, portfolio additions and strategic investments funded by our strong cash flow will drive positive operational results in 2011 and beyond.”
The medical devices segment logged sales of $6.72 billion this year, up 10.8 percent compared with 2009. U.S. sales rose to $2.84 billion, up 12.3 percent; international sales were up 9.7 percent to $3.88 billion. Fourth-quarter sales were $1.77 billion, up 9.0 percent compared with $1.63 billion during Q4 2009. Sales grew 20.0 percent in the U.S., to $804.0 million compared with $670.0 million during the same quarter last year. International sales ticked up 1.3 percent to $969.0 million during Q4 2010.
Covidien said the Aspect medical business drove double-digit sales growth for its oximetry and monitoring product line. Vascular product sales jumped more than 70 percent, “reflecting the addition of ev3 products and double-digit increases for venous insufficiency and compression products,” according to a press release.
COV shares were trading at $43.60 in early-morning activity, up 5.5 percent.