Sorin Group (BIT:SRN) reported flat sales but strong profit growth for 2011, saying it raised earnings by 48.3%, also revealing that the cardiac rhythm management slump has made its way across the pond.
The Italian medical device maker posted net income of €58.0 million (~$75.2 million) on sales of €743.4 million (~$963.4 million) for the year ended Dec. 31, 2011. That compares with profits of €39.1 million (~$50.7 million) on sales of €745.8 million (~$966.5 million) during 2010.
“2011 was a challenging year for the top line, particularly in CRM. In contrast, the company strengthened its global leadership position in cardiopulmonary and was able to significantly grow its net profit by around 48%,” CEO André-Michel Ballester said in prepared remarks. “In 2012 we are committed to continue sustaining our longer-term growth strategy with further geographic expansion initiatives and additional investments in innovation.”
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Sorin’s CRM unit reported revenues of €277.5 million (~$359.6 million), down 2.9% compared with 2010, “mainly due to a global market slowdown and the absence in the first 9 months of significant new product launches for the company in the cardiac resynchronization therapy segment,” according to a press release.
Its cardiopulmonary division reported sales of €344.9 million (~$447.0 million), up 4.2% year-over-year. Sorin’s heart valve business posted revenues of €119.0 million (~$154.2 million), a 1.5% increase.
The company said it expects to log sales growth of between 2% and 4% this year, with profits up 5% to 10%. First-quarter sales are predicted to grow by 1% to 2%, compared with Q1 2011.
Sorin also said it spent €6.0 million (~$7.8 million) buying back 3.8 million shares of its own stock and that it plans to ask shareholders to approve a new plan.
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