This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Covidien Management Discusses Q3 2012 Results - Earnings Call Transcript

Before I go into more detail on our third quarter results, I'd like to spend a moment discussing the overall health care products marketplace. In the U.S., we have not seen any significant change in volumes, procedures or utilization in the last few months. Volumes remained depressed, largely due to continued high levels of unemployment and delays in elective procedures.

In Europe, austerity programs and the economic slowdown continue to pressure all of med tech.

Emerging markets are growing rapidly and we expect this to continue as access to health care expense, and the demographic trends are favorable.

Our results this quarter showed the positive impact of our broad portfolio and global leverage. In the U.S., sales grew 6%, driven by very strong 9% increase in the -- for Medical Devices. In Japan, we delivered double-digit growth with good gains in Energy, Vascular and Stapling products. We also reached solid products in other developed markets including Canada and Australia. In our emerging markets comprising Eastern Europe, Middle East and Africa, Asia and Latin America, sales again grew at a double-digit pace with broad-based gains led by Endomechanical, Soft Tissue Repair and Energy products. We registered exceptional growth in the BRIC countries, led by China and Brazil, where we will continue to make incremental investments to accelerate growth and expand our product offerings.

This positive progress was partially offset by somewhat slower growth in our European business, which was up in the low single digits operationally this quarter. Across the business, we saw a significant slowdown in Spain, the sales grew in many other markets despite the difficult conditions. We believe we have the right mix of products and technologies to be successful in the European marketplace.

As now I get into my comments on individual product categories, I would discuss our growth on an operational basis excluding the negative impact of foreign currency. I'm doing this because I believe they provide of a better picture of our progress.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs