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Invacare Corporation (NYSE: IVC) today announced its financial results for the quarter ended March 31, 2012.
Commenting on Invacare's first quarter 2012 results, Gerald B. Blouch, President and Chief Executive Officer, stated, ``Throughout the first quarter of 2012, Invacare continued to dedicate significant resources to its regulatory and quality systems improvements, including those related to observations made by the United States Food and Drug Administration (FDA). Primarily as a result of the related incremental regulatory and compliance costs, adjusted earnings per share
(a) decreased 22% to $0.25 in the first quarter of 2012 compared to $0.32 in the first quarter of 2011. If the impact of these incremental costs, which aggregated approximately $0.09 per share ($2.8 million after-tax expense), were excluded, adjusted earnings per share
(a) would have been $0.34 in the first quarter. Also in the first quarter of 2012, the Company increased organic net sales by 0.2% compared to last year. This growth was achieved with the strength of Invacare's diverse footprint, as organic growth in Europe and Invacare Supply Group offset declines in the North America/Home Medical Equipment, Asia/Pacific and Institutional Products Group business segments.''
Regarding the outlook for 2012, Blouch continued, ``The Company is still not in a position to provide guidance for 2012 and does not expect to be able to do so until the terms of the FDA's proposed consent decree of injunction related to the Company's corporate facility and its wheelchair manufacturing facility in Elyria, Ohio, are finalized. The Company continues to discuss these terms with the FDA and, in the meantime, it is working expeditiously to make systemic improvements to ensure full compliance with the FDA's Quality System Regulation (QSR). The Company is making significant progress on its remediation efforts and in the fourth quarter of 2012, it expects to engage a third party to conduct an audit of its compliance.