DUBLIN - Saturday, January 26th 2013 [ME NewsWire]
Net sales up 5%; Medical Devices sales up 8%
First-quarter diluted GAAP earnings per share were $1.03; excluding
specified items, adjusted diluted earnings per share were $1.10
Increasing fiscal 2013 net sales guidance in all segments
(BUSINESS
WIRE)-- Covidienplc (NYSE: COV) today reported results for the first
quarter of fiscal 2013 (October - December 2012). First-quarter net
sales of $3.06 billion were 5% above the $2.90 billion reported in the
comparable period a year ago. Foreign exchange rate movement lowered the
quarterly sales growth rate by one percentage point.
First-quarter
2013 gross margin of 57.5% declined 1.2 percentage points from the
58.7% of the prior-year period. On an adjusted basis, excluding the
specified items shown on the attached quarterly Non-GAAP reconciliations
table, first-quarter 2013 gross margin of 57.5% was 1.3 percentage
points below that of a year ago. The decline was largely due to
unfavorable foreign exchange rate movement, partially offset by positive
business mix and productivity improvements.
Selling, general and
administrative expenses (SG&A) for the first quarter of 2013 were
above those of the same period of the year before, reflecting expenses
associated with recent acquisitions, as well as spending on growth
initiatives, including investments to expand the Company’s presence in
emerging markets. Research and development (R&D) expense in the
first quarter of 2013 represented 4.9% of net sales, versus 5.0% of
sales in the first quarter of 2012.
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