Radiopharmaceutical firm Covidien of Hamilton, Bermuda, notched a double-digit gain in net sales in its second fiscal quarter (end-March 31), despite a decline in its Imaging Solutions business.
Total net sales in the second quarter increased 11% to $2.7 billion, compared with $2.4 billion in the second quarter of fiscal 2008. Net income slipped 30% to $184 million, compared with $263 million in the same quarter a year ago.
Second-quarter results include a one-time $183 million charge for Covidien's portion of Tyco International's shareholder settlement and an accrual for the company's portion of the estimated cost to settle Tyco's remaining securities cases.
For the six-month period, net sales gained 9% to $5.2 billion, compared with $4.7 billion in the same period of fiscal 2008. Net income fell to $570 million, compared with $683 million in the same period a year ago.
Net sales in the Imaging Solutions business dropped 9% to $276 million in the second quarter, compared with $304 million in the second quarter of fiscal 2008. Covidien blamed the worldwide shortage of molybdenum-99 for the shortfall, as well as lower sales of contrast products due to lower volume, competition, and pricing pressures in the U.S.
For the six-month period, Imaging Solutions' net sales decreased 9% to $541 million, compared with $595 million in the same period of the last fiscal year.
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