Covidien books lower net income, higher sales in Q2

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Covidien has reported increased net sales and decreased net income for the second quarter of fiscal 2008, which ended March 28.

For the quarter, net sales rose 10 percent to $2.4 billion from $2.2 billion a year ago, which the Hamilton, Bermuda-based company said was fueled by strong growth in the medical devices and imaging solutions business segments.

Net income fell to $263 million for the second quarter from $394 million in net income booked in the same quarter last year.

The company also reported an operating income of $405 million for the quarter, versus $484 million from a year ago.

Imaging Solutions sales rose 17 percent to $304 million, compared with $259 million in the prior year’s second quarter, due to favorable foreign exchange; strong sales growth in Radiopharmaceuticals and Contrast Products, which were aided by favorable comparisons due to last year’s product recall, while Contrast Products benefited from higher volume in the United States and Asia, which more than offset pricing pressures in the United States, the company said.

Medical Devices sales climbed 12 percent in the second quarter to $1.7 billion from $1.5 billion in the second quarter of the previous year, driven by increased sales in Endomechanical; in Energy due to higher sales of vessel sealing and new products, including LigaSure Impact and Hand Switching Atlas; and in Soft Tissue Repair, Covidien said.

Covidien updated its fiscal 2008 guidance, estimating that sales in the 2008 fiscal year will increase 8 to 11 percent, including the impact of foreign exchange.