Third-quarter profits for Sorin Group soared some 7,200% on sales growth of 12.4% as the Italian medical device company finalized its recovery from a pair of earthquakes last year.
Milan-based Sorin reported profits of €14.6 million, or $20.2 million, on sales of €180.3 million, or $249.0 million, for the 3 months ended Sept. 30. Adjusted to exclude 1-time items, profits were €15.7 million, or $21.7 million.
"The 3rd quarter of 2013 confirms the full recovery from the 2012 earthquakes for both the oxygenator and autotransfusion segments," according to a press release.
The temblors killed at least 27 people in May 2012. The first, rated at 6.1 on the Richter scale, struck May 20, with a pair of 5.2-magnitude aftershocks following 1st an hour later and then 11 hours after the 1st quake. Another 5.8-magnitude temblor hit May 29, 2012, causing widespread damage, especially to infrastructure that was already crippled during the 1st quake. The death toll from the 2nd quake reached 20 people.
Although no Sorin workers were hurt, its plant in Mirandola, 1 of 2 in Italy and 7 worldwide, was damaged. The plant makes oxygenators and disposable autotransfusion kits.
"In the third quarter Sorin reported revenues in line with guidance and confirmed its track-record of net profit expansion and robust cash generation. The cardiac surgery business unit reported strong revenue growth and a full recovery for oxygenators and autotransfusion systems from the impact of the 2012 earthquakes, alongside exceptional performance of heart-lung machines and improved results of the heart valve segment. The cardiac rhythm management business unit is showing first signs of stabilization, although the outlook for the full year remains negative," CEO André-Michel Ballester said in prepared remarks. "We now expect sales for 2013 close to the low end of guidance, while profitability will be in the high end of the previously communicated guidance."
Sorin said it expects to full-year revenue growth of roughly 5% on a constant-currency basis, with adjusted net profits of €58 million to €60 million, or $69 million to $83 million.