CareFusion Corp. (NYSE:CFN) posted bottom-line declines for both the fourth quarter and its first year as a public company, prompting the medical device maker to slash its workforce by 4.7 percent despite positive top-line growth.
San Diego-based CareFusion reported profits of $52 million, or 23 cents per diluted share, on sales of $1.04 billion during the three months ended June 30. That compares with profits of $96 million, or 44 cents per diluted share, during Q4 2009.
For the full year the company posted a 65.8 percent net income slide, from $568 million ($2.58 per diluted share) during fiscal 2009 to $194 million during the just-completed year. Sales rose 9.3 percent during FY2010, to $3.93 billion, from $3.60 billion during FY 2009.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
The bottom-line slide pushed the company to lay off 700 workers, aiming to save up to $95 million during fiscal 2011 and another $120 million the following year by eliminating layers of management and reducing its “supporting infrastructure,” according to a press release. The moves will cost up to $50 million during fiscal 2011, according to the release.
“During fiscal 2010, we evaluated our cost structure and the strategic fit of certain businesses and are now taking the necessary steps to ‘right-size’ our company. Our goal is to improve our competitive position, accelerate our previously announced efforts to improve our operating margins and enhance our focus on the core opportunities we have for growth,” chairman and CEO David Schlotterbeck said in prepared remarks.
“We are expecting revenue growth of mid-single-digits on a reported basis over fiscal 2010 results, and adjusted diluted earnings per share of $1.58 to $1.68, an 11 to 18 percent increase,” Schlotterbeck added.
Cardinal Health (NYSE:CAH) spun its medical equipment business out as CareFusion last year.
Health Benefit Consultants, Share Your Expert Insights in Our Survey
MassDevice Staff Website The Massachusetts Medical Devices Journal is the online journal of the medical devices industry in the Commonwealth and New England, providing day-to-day coverage of the devices that save lives, the people behind them, and the burgeoning trends and developments within the industry.
Wall Street seemed to like the company’s plan to trim its sails. CFN shares were trading at $23.41 in mid-day activity, up 9.4 percent.
The Massachusetts Medical Devices Journal is the online journal of the medical devices industry in the Commonwealth and New England, providing day-to-day coverage of the devices that save lives, the people behind them, and the burgeoning trends and developments within the industry.
