Covidien (COV) Guides FY10 at Investor Meeting
COV Hot Sheet
EPS Growth %: +10.5%Financial Fact:
Cash dividends declared per ordinary share: 0.45
Today's EPS Names:
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Covidien (NYSE: COV) held a meeting for the investment community today where it highlighted the strengths, strategies and innovations that are expected to drive the Company's growth in 2010 and beyond. In addition, the meeting included two interactive physician panels discussing the latest developments in several of the Company's key product lines.
Chairman, President and CEO Richard J. Meelia spoke about the Company's accomplishments in 2009 and the key factors which will drive the Company's growth over the next few years.
"We are successfully delivering on our objectives in 2009, despite the challenging external environment. We implemented a number of internal changes to better align our business with market growth opportunities, launched several meaningful new products and significantly increased our investment in research and development," Meelia said. "In addition, we made a number of portfolio moves which we expect will better position us for future growth. These included two acquisitions in the vascular products category, several licensing agreements in pharmaceuticals and the divestiture of slower growth, low-margin product lines. We again generated strong cash flow, initiated a stock buyback program and implemented tax planning strategies which resulted in a significant reduction in our effective tax rate."
Chief Financial Officer Charles Dockendorff provided an outlook for fiscal 2010. The Company estimates that net sales in the 2010 fiscal year will increase 4% - 7% versus 2009 adjusted net sales, excluding oxycodone extended-release tablets (Oxy ER). Net sales are expected to increase 7% - 10% versus 2009 in the Medical Devices segment and 2% - 5% in Medical Supplies. The Company expects sales in Pharmaceuticals to be down 2% to up 1% versus the 2009 adjusted net sales excluding Oxy ER. All sales growth rates assume current foreign exchange rates.
Excluding the impact of one-time items, operating margin is expected to be in the 20% - 21% range. Covidien anticipates the effective tax rate will be in the 21% - 23% range for fiscal 2010, excluding the impact of one-time items.
Chairman, President and CEO Richard J. Meelia spoke about the Company's accomplishments in 2009 and the key factors which will drive the Company's growth over the next few years.
"We are successfully delivering on our objectives in 2009, despite the challenging external environment. We implemented a number of internal changes to better align our business with market growth opportunities, launched several meaningful new products and significantly increased our investment in research and development," Meelia said. "In addition, we made a number of portfolio moves which we expect will better position us for future growth. These included two acquisitions in the vascular products category, several licensing agreements in pharmaceuticals and the divestiture of slower growth, low-margin product lines. We again generated strong cash flow, initiated a stock buyback program and implemented tax planning strategies which resulted in a significant reduction in our effective tax rate."
Chief Financial Officer Charles Dockendorff provided an outlook for fiscal 2010. The Company estimates that net sales in the 2010 fiscal year will increase 4% - 7% versus 2009 adjusted net sales, excluding oxycodone extended-release tablets (Oxy ER). Net sales are expected to increase 7% - 10% versus 2009 in the Medical Devices segment and 2% - 5% in Medical Supplies. The Company expects sales in Pharmaceuticals to be down 2% to up 1% versus the 2009 adjusted net sales excluding Oxy ER. All sales growth rates assume current foreign exchange rates.
Excluding the impact of one-time items, operating margin is expected to be in the 20% - 21% range. Covidien anticipates the effective tax rate will be in the 21% - 23% range for fiscal 2010, excluding the impact of one-time items.
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