Covidien Ltd. (NYSE: COV; BSX: COV) today reported results for the
second quarter of fiscal 2008 (January "“ March 2008). Second-quarter net sales rose 10% to $2.4 billion from $2.2
billion a year ago, fueled by strong growth in the Medical Devices and
Imaging Solutions business segments. Sales growth was driven by higher
volume and new products. Favorable foreign exchange contributed 5
percentage points to the sales increase. International markets, paced by
Europe, Other Americas and Japan, generated strong double-digit sales
gains.
Second-quarter gross margin of 52.4% was up 1 percentage point from that
of the prior year. This substantial improvement reflected positive mix
in our established business and favorable foreign exchange.
Selling, general and administrative expenses were significantly higher
than in the second quarter of last year. The increase was attributable
to planned growth in selling and marketing investments, foreign exchange
and higher administrative costs. Research and Development (R&D) expense
in the quarter was up 19% over the prior year and represented 3.1% of
sales.
For the second quarter, the Company reported operating income of $405
million, versus $484 million a year ago. Excluding restructuring and
asset impairment charges and charges for Covidien´s
portion of a Tyco International shareholder settlement, adjusted
operating income was $500 million in the second quarter of 2008, versus
$488 million in the prior year. Second-quarter 2008 adjusted operating
income represented 20.6% of sales, versus 22.2% in the second quarter of
2007.
The second-quarter effective tax rate was 30.8%. Excluding the specified
items shown in the attached table, the second-quarter tax rate was
27.0%. The rate was favorably impacted by a greater proportion of income
realized in lower tax jurisdictions as a result of favorable foreign
exchange rates. In addition, the tax rate benefited from reduced
interest rates on accrued tax liabilities.
Second-quarter diluted GAAP earnings per share from continuing
operations were $0.49, versus $0.76 in the second quarter last year. The
second quarter of 2008 included the following items: decreases of $0.11
for restructuring and asset impairment charges and $0.06 for Covidien´s
portion of a Tyco International shareholder settlement. Excluding these
items, diluted earnings per share from continuing operations were $0.66
versus $0.68 a year ago.
For the first six months of fiscal 2008, net sales of $4.7 billion were
10% above the $4.3 billion in the prior year, with favorable foreign
exchange contributing 5 percentage points to the sales increase. Sales
rose 3% in the United States and 18% outside the U.S., with double-digit
increases in all international regions.
The Company reported operating income of $860 million in the first six
months of fiscal 2008 versus $960 million a year ago. The 2008 operating
income for the first six months included charges of $69 million for
restructuring and asset impairments, $31 million for Covidien´s
portion of a Tyco International shareholder settlement and $12 million
for in-process R&D. Excluding these charges, operating income would have
been $972 million, representing 20.5% of sales.
The effective tax rate was 26.7% for the first six months of fiscal
2008. Excluding the specified items shown in the attached table, the tax
rate for the six months 2008 was 29.4%.
For the first six months of 2008, diluted GAAP earnings per share from
continuing operations of $1.38 included the following items: an increase
of $0.34 from the Tax Sharing Agreement and decreases of $0.11 for
restructuring and asset impairment charges, $0.06 for Covidien´s
portion of a Tyco International shareholder settlement, $0.02 for
in-process R&D charges and $0.01 for other tax matters that impacted the
effective tax rate. Excluding these items, diluted earnings per share
from continuing operations were $1.24.
"We are pleased with our second quarter
operational results, which met our expectations, though earnings
benefited from a lower than expected tax rate," said President and Chief Executive Officer Richard J. Meelia. "The
quarter featured another strong performance for Medical Devices, aided
by favorable foreign exchange, and for Imaging Solutions, which reported
double-digit operational sales growth. As a result, we are raising our
sales guidance for fiscal 2008.
"During the quarter, we again saw the benefit
of our earlier investments in selling, marketing and R&D. Our sales
growth rate accelerated significantly, particularly outside the U.S.
and we launched a number of meaningful new products," Mr. Meelia said, adding that "Following the
close of the quarter, we completed the previously announced divestiture
of the Retail Products business."
Results by business segment follow.
Medical Devices sales climbed 12% in the second quarter to $1.7
billion from $1.5 billion in the second quarter of the previous year.
The sales gain was driven by favorable foreign exchange, which
contributed 6 percentage points to the increase, as well as by new
products and higher volume. Sales in Endomechanical were well above
those of a year ago, paced by higher sales in both the United States and
Europe. Energy registered strong double-digit growth in the quarter, due
to higher sales of vessel sealing and new products, including LigaSure
Impact and Hand Switching Atlas. Sales in Soft Tissue Repair were up
significantly, aided by a strong U.S. performance for mesh and
biosurgery products.
For the first six months of fiscal 2008, Medical Devices sales grew 12%
to $3.3 billion from $2.9 billion a year ago. Favorable foreign exchange
contributed 7 percentage points to the sales advance.
Imaging Solutions sales rose 17% to $304 million, compared
with $259 million in the prior year´s second
quarter. Favorable foreign exchange contributed 5 percentage points to
the sales increase. Sales growth was broad-based, as both
Radiopharmaceuticals and Contrast Products delivered gains at a strong
double-digit pace in the quarter. The Radiopharmaceutical increase was
aided by favorable comparisons due to last year´s
product recall, while Contrast Products benefited from higher volume in
the U.S. and Asia, which more than offset pricing pressures in the U.S.
For the six months, Imaging Solutions sales climbed 16% to $595 million
versus $515 million the year before. Favorable foreign exchange
contributed 5 percentage points to the sales increase.
Pharmaceutical Products sales in the second quarter were even
with a year ago at $239 million. An increase in sales of Active
Pharmaceutical Ingredients, driven by higher sales of peptides, was
offset by a decline in sales of Dosage products. Within Dosage, sales of
branded products were higher, but the increase was more than offset by a
decline in sales of generics.
For the six months, Pharmaceutical Products sales were off 1% to $460
million from $464 million last year.
Medical Supplies sales declined 1% to $220 million from $222
million in the second quarter of the previous year, primarily due to
lower OEM sales. For the six months, sales of Medical Supplies, at $437
million, were 1% below last year´s $443
million.
FISCAL 2008 OUTLOOK
The Company has updated its fiscal 2008 guidance. This update reflects
the stronger first-half performance, due in part to favorable exchange
rates. The Company now estimates that sales in the 2008 fiscal year will
increase 8% - 11%, including the impact of foreign exchange. Net sales
are expected to increase 10% - 13% versus 2007 in the Medical Devices
segment, 11% - 14% in Imaging Solutions and 3% - 6% in Pharmaceutical
Products. The Company expects sales in Medical Supplies to be about even
with those of 2007. Consistent with prior guidance and excluding the
impact of one-time items, the operating margin is expected to be in the
20% - 21% range. We now anticipate the effective tax rate will be in the
28% - 31% range for fiscal 2008, excluding the impact of one-time items.
ABOUT COVIDIEN LTD.
Covidien is a leading global healthcare products company that creates
innovative medical solutions for better patient outcomes and delivers
value through clinical leadership and excellence. Covidien manufactures
distributes and services a diverse range of industry-leading product
lines in four segments: Medical Devices, Imaging Solutions
Pharmaceutical Products and Medical Supplies. With 2007 revenue of
nearly $9 billion, Covidien has more than 42,000 employees worldwide in
57 countries, and its products are sold in over 130 countries. Please
visit www.covidien.com to learn
more about our business.
CONFERENCE CALL AND WEBCAST
The Company will hold a conference call for investors today, beginning
at 8:30 a.m. ET. This call can be accessed three ways:
Web "“ Go to Covidien´s
website at www.covidien.com. A
replay of the call will be available through May 13 at the same
website.
Telephone "“ The dial-in number for
participants in the United States is (800)-322-5044. For participants
outside the United States, the dial-in number is (617)-614-4927. The
access code for both numbers is 80983121.
Audio replay "“ The conference call will be
available for replay, beginning at 10:30 a.m. ET on May 6, 2008, and
ending at 11:59 p.m. on May 13, 2008. The dial-in number for
participants in the United States is (888)-286-8010. For participants
outside the United States, the replay dial-in number is
(617)-801-6888. The replay access code for all callers is 33653329.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted
operating income, adjusted earnings per share and adjusted operating
margin, that are considered "non-GAAP" financial measures under applicable Securities & Exchange Commission
rules and regulations. These non-GAAP financial measures should be
considered supplemental to and not a substitute for financial
information prepared in accordance with generally accepted accounting
principles. The Company´s definition of
these non-GAAP measures may differ from similarly titled measures used
by others.
The non-GAAP financial measures used in this press release adjust for
specified items that can be highly variable or difficult to predict. The
Company generally uses these non-GAAP financial measures to facilitate
management´s financial and operational
decision-making, including evaluation of Covidien´s
historical operating results, comparison to competitors´ operating results and determination of management incentive compensation.
These non-GAAP financial measures reflect an additional way of viewing
aspects of the Company´s operations that
when viewed with GAAP results and the reconciliations to corresponding
GAAP financial measures, may provide a more complete understanding of
factors and trends affecting Covidien´s business.
Because non-GAAP financial measures exclude the effect of items that
will increase or decrease the Company´s
reported results of operations, management strongly encourages investors
to review the Company´s consolidated
financial statements and publicly filed reports in their entirety. A
reconciliation of the non-GAAP financial measures to the most directly
comparable GAAP financial measures is included in the tables
accompanying this release.
The Company presents its operating margin forecast before special items
to give investors a perspective on the expected underlying business
results. Because the Company cannot predict the amount and timing of
such items and the associated charges or gains that will be recorded in
the Company´s financial statements, it is difficult to include the
impact of those items in the forecast.
FORWARD-LOOKING STATEMENTS
Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on our management´s
current beliefs and expectations, but are subject to a number of risks
uncertainties and changes in circumstances, which may cause actual
results or Company actions to differ materially from what is expressed
or implied by these statements. The factors that could cause actual
future results to differ materially from current expectations include
but are not limited to, our ability to effectively introduce and market
new products or keep pace with advances in technology, the reimbursement
practices of a small number of large public and private insurers
cost-containment efforts of customers, purchasing groups, third-party
payers and governmental organizations, intellectual property rights
disputes, complex and costly regulation, including healthcare fraud and
abuse regulations, manufacturing or supply chain problems or
disruptions, recalls or safety alerts and negative publicity relating to
Covidien or its products, product liability losses and other litigation
liability, divestitures of some of our businesses or product lines, our
ability to execute strategic acquisitions of, investments in or
alliances with other companies and businesses, competition, risks
associated with doing business outside of the United States, foreign
currency exchange rates, potential environmental liabilities or
increased costs after the separation from Tyco International or as a
result of the separation. These and other factors are identified and
described in more detail in our filings with the SEC. We disclaim any
obligation to update these forward-looking statements other than as
required by law.
= = = = = = = = = = =
Covidien Ltd.
- - - - - -
Consolidated and Combined Statements of Income
- - - - - -
Quarters Ended March 28, 2008 and March 30, 2007
- - - - - -
(dollars in millions, except per share data)
- - - - - -
- - - - - -
- - - - - -
Quarter Ended
Percent of
Quarter Ended
Percent of
- - - - - -
March 28, 2008
Net Sales
March 30, 2007
Net Sales
- - - - - -
- - - - - -
Net sales
$
2,426
100.0
%
$
2,200
100.0
%
- - - - - -
Cost of products sold
1,155
47.6
1,069
48.6
- - - - - -
Gross profit
1,271
52.4
1,131
51.4
- - - - - -
- - - - - -
Selling, general and administrative expenses
696
28.7
580
26.4
- - - - - -
Research and development expenses
75
3.1
63
2.9
- - - - - -
Restructuring and asset impairment charges
64
2.6
4
0.2
- - - - - -
Shareholder settlement
31
1.3
-
-
- - - - - -
Operating income
405
16.7
484
22.0
- - - - - -
- - - - - -
Interest expense
56
2.3
39
1.8
- - - - - -
Interest income
(8
)
(0.3
)
(10
)
(0.5
)
- - - - - -
Other income, net
(3
)
(0.1
)
(6
)
(0.3
)
- - - - - -
Income from continuing operations before income taxes
360
14.8
461
21.0
- - - - - -
- - - - - -
Income taxes
111
4.6
84
3.8
- - - - - -
Income from continuing operations
249
10.3
377
17.1
- - - - - -
- - - - - -
Income from discontinued operations, net of income taxes
(14
)
(0.6
)
(17
)
(0.8
)
- - - - - -
Net income
$
263
10.8
$
394
17.9
- - - - - -
- - - - - -
Basic earnings per share:
- - - - - -
Income from continuing operations
$
0.50
$
0.76
- - - - - -
Income from discontinued operations
(0.03
)
(0.03
)
- - - - - -
Net income
0.53
0.79
- - - - - -
- - - - - -
Diluted earnings per share:
- - - - - -
Income from continuing operations
$
0.49
$
0.76
- - - - - -
Income from discontinued operations
(0.03
)
(0.03
)
- - - - - -
Net income
0.52
0.79
- - - - - -
- - - - - -
Weighted-average number of shares outstanding: (1)
- - - - - -
Basic
499
497
- - - - - -
Diluted
503
497
- - - - - -
- - - - - -
(1) For the quarter ended March 30
2007, the common shares outstanding immediately following the
Separation were used to calculate basic and diluted earnings per
share because no common shares, share options or restricted shares
of Covidien were outstanding on or before June 29, 2007.
- - - - - -
= = = = = = = = = = =
Covidien Ltd.
- - - - - -
Non-GAAP Reconciliations
- - - - - -
Quarters Ended March 28, 2008 and March 30, 2007
- - - - - -
(dollars in millions, except per share data)
- - - - - -
- - - - - -
- - - - - -
Quarter Ended March 28, 2008
- - - - - -
Operating income
Income from continuing operations before income taxes
Income from continuing operations
Diluted earnings per share from continuing operations
- - - - - -
- - - - - -
GAAP
$
405
$
360
$
249
$
0.49
- - - - - -
Adjustments:
- - - - - -
Restructuring and asset impairment charges (1)
64
64
53
0.11
- - - - - -
Shareholder settlement (2)
31
31
31
0.06
- - - - - -
Tax matters
-
-
(1
)
-
- - - - - -
As adjusted
$
500
$
455
$
332
0.66
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1) Consists of restructuring charges
of $47 million and asset impairment charges of $17 million primarily
related to our Medical Devices segment.
- - - - - -
- - - - - -
(2) Shareholder settlement charge
represents our portion of Tyco International´s legal settlement with
the State of New Jersey.
- - - - - -
- - - - - -
- - - - - -
Quarter Ended March 30, 2007
- - - - - -
Operating income
Income from continuing operations before income taxes
Income from continuing operations
Diluted earnings per share from continuing operations
- - - - - -
- - - - - -
GAAP
$
484
$
461
$
377
$
0.76
- - - - - -
Adjustments:
- - - - - -
Restructuring charges (1)
4
4
3
0.01
- - - - - -
Tax matters (2)
-
-
(42
)
(0.08
)
- - - - - -
As adjusted
$
488
$
465
$
338
0.68
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1) Primarily relates to our Medical
Devices segment.
- - - - - -
- - - - - -
(2) Primarily relates to the release
of deferred tax valuation allowances resulting from changes in
non-U.S. tax law.
- - - - - -
= = = = = = = = = = =
Covidien Ltd.
- - - - - -
Consolidated and Combined Statements of Income
- - - - - -
Six Months Ended March 28, 2008 and March 30, 2007
- - - - - -
(dollars in millions, except per share data)
- - - - - -
- - - - - -
- - - - - -
Six Months Ended
Percent of
Six Months Ended
Percent of
- - - - - -
March 28, 2008
Net Sales
March 30, 2007
Net Sales
- - - - - -
- - - - - -
Net sales
$
4,742
100.0
%
$
4,328
100.0
%
- - - - - -
Cost of products sold
2,232
47.1
2,081
48.1
- - - - - -
Gross profit
2,510
52.9
2,247
51.9
- - - - - -
- - - - - -
Selling, general and administrative expenses
1,385
29.2
1,136
26.2
- - - - - -
Research and development expenses
153
3.2
123
2.8
- - - - - -
In-process research & development charges
12
0.3
8
0.2
- - - - - -
Restructuring and asset impairment charges
69
1.5
20
0.5
- - - - - -
Shareholder settlement
31
0.7
-
-
- - - - - -
Operating income
860
18.1
960
22.2
- - - - - -
- - - - - -
Interest expense
116
2.4
79
1.8
- - - - - -
Interest income
(20
)
(0.4
)
(19
)
(0.4
)
- - - - - -
Other income, net
(183
)
(3.9
)
(6
)
(0.1
)
- - - - - -
Income from continuing operations before income taxes
947
20.0
906
20.9
- - - - - -
- - - - - -
Income taxes
253
5.3
197
4.6
- - - - - -
Income from continuing operations
694
14.6
709
16.4
- - - - - -
- - - - - -
Loss (income) from discontinued operations, net of income taxes
11
0.2
(23
)
(0.5
)
- - - - - -
Net income
$
683
14.4
$
732
16.9
- - - - - -
- - - - - -
Basic earnings per share:
- - - - - -
Income from continuing operations
$
1.39
$
1.43
- - - - - -
Loss (income) from discontinued operations
0.02
(0.04
)
- - - - - -
Net income
1.37
1.47
- - - - - -
- - - - - -
Diluted earnings per share:
- - - - - -
Income from continuing operations
$
1.38
$
1.43
- - - - - -
Loss (income) from discontinued operations
0.02
(0.04
)
- - - - - -
Net income
1.36
1.47
- - - - - -
- - - - - -
Weighted-average number of shares outstanding: (1)
- - - - - -
Basic
498
497
- - - - - -
Diluted
503
497
- - - - - -
- - - - - -
(1) For the six months ended March
30, 2007, the common shares outstanding immediately following the
Separation were used to calculate basic and diluted earnings per
share because no common shares, share options or restricted shares
of Covidien were outstanding on or before June 29, 2007.
- - - - - -
= = = = = = = = = = =
Covidien Ltd.
- - - - - -
Non-GAAP Reconciliations
- - - - - -
Six Months Ended March 28, 2008 and March 30, 2007
- - - - - -
(dollars in millions, except per share data)
- - - - - -
- - - - - -
- - - - - -
Six Months Ended March 28, 2008
- - - - - -
Operating income
Income from continuing operations before income taxes
Income from continuing operations
Diluted earnings per share from continuing operations
- - - - - -
- - - - - -
GAAP
$
860
$
947
$
694
$
1.38
- - - - - -
Adjustments:
- - - - - -
In-process research and development charge (1)
12
12
12
0.02
- - - - - -
Restructuring and asset impairment charges (2)
69
69
56
0.11
- - - - - -
Shareholder settlement (3)
31
31
31
0.06
- - - - - -
Impact of tax sharing agreement resulting from FIN 48 adoption (4)
-
(172
)
(172
)
(0.34
)
- - - - - -
Tax matters
-
-
5
0.01
- - - - - -
As adjusted
$
972
$
887
$
626
1.24
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1) Write-off of in-process research
and development in connection with the acquisition of Scandius
Biomedical, Inc. by our Medical Devices segment.
- - - - - -
- - - - - -
(2) Consists of restructuring
charges of $52 million and asset impairment charges of $17 million
primarily related to our Medical Devices segment.
- - - - - -
- - - - - -
(3) Shareholder settlement charge
represents our portion of Tyco International´s legal settlement with
the State of New Jersey.
- - - - - -
- - - - - -
(4) Other income includes the impact
of our tax sharing agreement with Tyco International and Tyco
Electronics primarily resulting from the adoption of FIN 48.
- - - - - -
- - - - - -
- - - - - -
Six Months Ended March 30, 2007
- - - - - -
Operating income
Income from continuing operations before income taxes
Income from continuing operations
Diluted earnings per share from continuing operations
- - - - - -
- - - - - -
GAAP
$
960
$
906
$
709
$
1.43
- - - - - -
Adjustments:
- - - - - -
In-process research and development charge (1)
8
8
8
0.02
- - - - - -
Restructuring charges (2)
20
20
13
0.03
- - - - - -
Tax matters (3)
-
-
(47
)
(0.09
)
- - - - - -
As adjusted
$
988
$
934
$
683
1.37
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1) Write-off of in-process research
and development in connection with the acquisition of Airox S.A. by
our Medical Devices segment.
- - - - - -
- - - - - -
(2) Primarily related to our Medical
Devices segment.
- - - - - -
- - - - - -
(3) Primarily relates to the release
of deferred tax valuation allowances resulting from changes in
non-U.S. tax law.
- - - - - -
= = = = = = = = = = =
- - - - - -
Covidien Ltd.
- - - - - -
Segment and Geographical Sales
- - - - - -
Quarters Ended March 28, 2008 and March 30, 2007
- - - - - -
(dollars in millions)
- - - - - -
- - - - - -
Quarters Ended
- - - - - -
March 28, 2008
March 30, 2007
Percent change
Percent change currency
Operationalgrowth
- - - - - -
- - - - - -
Medical Devices (1)
- - - - - -
United States
$
702
$
667
5
%
-
%
5
%
- - - - - -
Non-U.S.
961
813
18
12
6
- - - - - -
$
1,663
$
1,480
12
6
6
- - - - - -
- - - - - -
Imaging Solutions (1)
- - - - - -
United States
$
182
$
159
14
%
-
%
14
%
- - - - - -
Non-U.S.
122
100
22
14
8
- - - - - -
$
304
$
259
17
5
12
- - - - - -
- - - - - -
Pharmaceutical Products (1)
- - - - - -
United States
$
217
$
219
(1
)
%
-
%
(1
)
%
- - - - - -
Non-U.S.
22
20
10
-
10
- - - - - -
$
239
$
239
-
-
-
- - - - - -
- - - - - -
Medical Supplies (1)
- - - - - -
United States
$
220
$
222
(1
)
%
-
%
(1
)
%
- - - - - -
Non-U.S.
-
-
-
-
-
- - - - - -
$
220
$
222
(1
)
-
(1
)
- - - - - -
- - - - - -
Covidien Ltd. (1)
- - - - - -
United States
$
1,321
$
1,267
4
%
-
%
4
%
- - - - - -
Non-U.S.
1,105
933
18
12
6
- - - - - -
$
2,426
$
2,200
10
5
5
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1) Sales to external
customers are reflected in the regions based on the location of the
sales force executing the transaction.
- - - - - -
= = = = = = = = = = =
- - - - - -
Covidien Ltd.
- - - - - -
Segment and Geographical Sales
- - - - - -
Six Months Ended March 28, 2008 and March 30, 2007
- - - - - -
(dollars in millions)
- - - - - -
- - - - - -
Six Months Ended
- - - - - -
March 28, 2008
March 30, 2007
Percent change
Percent change currency
Operationalgrowth
- - - - - -
- - - - - -
MedicalDevices (1)
- - - - - -
United States
$
1,389
$
1,322
5
%
-
%
5
%
- - - - - -
Non-U.S.
1,861
1,584
17
11
6
- - - - - -
$
3,250
$
2,906
12
7
5
- - - - - -
- - - - - -
Imaging Solutions (1)
- - - - - -
United States
$
361
$
324
11
%
-
%
11
%
- - - - - -
Non-U.S.
234
191
23
13
10
- - - - - -
$
595
$
515
16
5
11
- - - - - -
- - - - - -
Pharmaceutical Products (1)
- - - - - -
United States
$
414
$
427
(3
)
%
-
%
(3
)
%
- - - - - -
Non-U.S.
46
37
24
5
19
- - - - - -
$
460
$
464
(1
)
-
(1
)
- - - - - -
- - - - - -
Medical Supplies (1)
- - - - - -
United States
$
437
$
443
(1
)
%
-
%
(1
)
%
- - - - - -
Non-U.S.
-
-
-
-
-
- - - - - -
$
437
$
443
(1
)
-
(1
)
- - - - - -
- - - - - -
Covidien Ltd. (1)
- - - - - -
United States
$
2,601
$
2,516
3
%
-
%
3
%
- - - - - -
Non-U.S.
2,141
1,812
18
11
7
- - - - - -
$
4,742
$
4,328
10
5
5
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1) Sales to external
customers are reflected in the regions based on the location of the
sales force executing the transaction.
- - - - - -
= = = = = = = = = = =
- - - - - -
Covidien Ltd.
- - - - - -
Select Product Line Sales
- - - - - -
Quarters Ended March 28, 2008 and March 30, 2007
- - - - - -
(dollars in millions)
- - - - - -
- - - - - -
Quarters Ended
- - - - - -
March 28, 2008
March 30, 2007
Percent change
Percent change currency
Operational growth
- - - - - -
- - - - - -
Medical Devices
- - - - - -
Endomechanical (1)
$
518
$
457
13
%
8
%
5
%
- - - - - -
Soft Tissue Repair (2)
141
119
18
8
10
- - - - - -
Energy (3)
194
154
26
8
18
- - - - - -
Oximetry and Monitoring (4)
165
152
9
6
3
- - - - - -
Airway and Ventilation (5)
208
192
8
7
1
- - - - - -
Vascular (6)
128
114
12
5
7
- - - - - -
SharpSafety (7)
116
113
3
2
1
- - - - - -
Clinical Care (8)
101
91
11
6
5
- - - - - -
- - - - - -
Imaging Solutions
- - - - - -
Radio-pharmaceuticals (9)
$
141
$
119
18
%
4
%
14
%
- - - - - -
Contrast (10)
163
140
16
6
10
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1) Endomechanical includes
our laparoscopic instruments and surgical staplers.
- - - - - -
- - - - - -
(2) Soft Tissue Repair
includes our suture products, mesh products and biosurgery products.
- - - - - -
- - - - - -
(3) Energy includes our
vessel sealing products, electrosurgical products, ablation products
and related capital equipment.
- - - - - -
- - - - - -
(4) Oximetry and Monitoring
includes our sensors and monitors products and our temperature
management products.
- - - - - -
- - - - - -
(5) Airway and Ventilation
includes our airway products, ventilator products, breathing
systems, sleep products and inhalation therapy products.
- - - - - -
- - - - - -
(6) Vascular includes our
compression products and vascular therapy products.
- - - - - -
- - - - - -
(7) SharpSafety includes our
needles and syringes products and our sharps disposable products.
- - - - - -
- - - - - -
(8) Clinical Care includes
our urology products, enteral feeding products and other advanced
woundcare products.
- - - - - -
- - - - - -
(9) Radiopharmaceuticals
includes our radioactive isotopes and associated pharmaceutical
products used for the diagnosis and treatment of disease.
- - - - - -
- - - - - -
(10) Contrast includes our
contrast delivery systems and contrast agents.
- - - - - -
= = = = = = = = = = =
- - - - - -
Covidien Ltd.
- - - - - -
Select Product Line Sales
- - - - - -
Six Months Ended March 28, 2008 and March 30, 2007
- - - - - -
(dollars in millions)
- - - - - -
- - - - - -
Six Months Ended
- - - - - -
March 28, 2008
March 30, 2007
Percent change
Percent change currency
Operationalgrowth
- - - - - -
- - - - - -
Medical Devices
- - - - - -
Endomechanical (1)
$
1,018
$
899
13
%
7
%
6
%
- - - - - -
Soft TissueRepair (2)
270
237
14
8
6
- - - - - -
Energy (3)
379
302
25
6
19
- - - - - -
Oximetry and Monitoring (4)
317
295
7
4
3
- - - - - -
Airway and Ventilation (5)
393
368
7
7
-
- - - - - -
Vascular (6)
257
231
11
5
6
- - - - - -
SharpSafety (7)
229
225
2
2
-
- - - - - -
Clinical Care (8)
200
181
10
5
5
- - - - - -
- - - - - -
Imaging Solutions
- - - - - -
Radio-pharmaceuticals (9)
$
276
$
237
16
%
3
%
13
%
- - - - - -
Contrast (10)
319
278
15
5
10
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1) Endomechanical includes
our laparoscopic instruments and surgical staplers.
- - - - - -
- - - - - -
(2) Soft Tissue Repair
includes our suture products, mesh products and biosurgery products.
- - - - - -
- - - - - -
(3) Energy includes our
vessel sealing products, electrosurgical products, ablation products
and related capital equipment.
- - - - - -
- - - - - -
(4) Oximetry and Monitoring
includes our sensors and monitors products and our temperature
management products.
- - - - - -
- - - - - -
(5) Airway and Ventilation
includes our airway products, ventilator products, breathing
systems, sleep products and inhalation therapy products.
- - - - - -
- - - - - -
(6) Vascular includes our
compression products and vascular therapy products.
- - - - - -
- - - - - -
(7) SharpSafety includes our
needles and syringes products and our sharps disposable products.
- - - - - -
- - - - - -
(8) Clinical Care includes
our urology products, enteral feeding products and other advanced
woundcare products.
- - - - - -
- - - - - -
(9) Radiopharmaceuticals
includes our radioactive isotopes and associated pharmaceutical
products used for the diagnosis and treatment of disease.
- - - - - -
- - - - - -
(10) Contrast includes our
contrast delivery systems and contrast agents.
- - - - - -
