Invacare Lowers Earnings Guidance

The wheelchair company cites weak sales and high freight costs.
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Wheelchair maker

Invacare

(IVC) - Get Report

lowered its earnings guidance Wednesday, citing weak sales around the world and high freight costs.

The Ohio equipment company expects to earn 38 cents to 41 cents a share in the second quarter, down from its previous forecast of 53 cents to 58 cents a share. The Thomson First Call consensus was 55 cents a share. Invacare put year-over-year sales growth at 16%, down from its previous estimate of 18% to 20%.

The company cited "continuing pressures from Medicare and Medicaid reimbursement" and "generally slow growth across geographies outside the U.S., particularly in the German market, due to reimbursement challenges for the Invacare wheelchair product lines."

The company said its sales shortfall is responsible for about 10 cents of the EPS revision, while freight costs took out another 6 cents a share. It said the higher shipping expense was "largely due to fuel surcharges driven by the high price of oil."

The stock closed Tuesday at $44.87.