Covidien Plc Revises FY14 Revenue Guidance - Quick Facts

(RTTNews) - Covidien plc (COV) announced revised revenue guidance for fiscal 2014. The company continues to estimate that net sales in fiscal 2014 will be up 2% to 5%. The company expects sales to be up 3% to 6% versus 2013 for Surgical Solutions; up 3% to 6% for Vascular Therapies; and up 1% to 4% for Respiratory & Patient Care.

The company continues to expect operating margin, excluding the impact of one-time items, to be in the 21.5% to 22.5% range, and the effective tax rate, excluding one-time items, to be in the 16% to 17% range. On a fully diluted basis, average shares outstanding are now expected to be between 450 million and 460 million.

Covidien noted that two previously announced transactions are not included in the guidance because they have not yet closed. The company currently believes the guidance ranges will not change materially upon the closing of the two transactions.

The company also announced details regarding its realignment of reportable segments and announced additional changes in its revenue reporting format. The company said the new format provides a worldwide view of sales across three major product categories while enhancing geographic reporting by breaking out non-U.S. sales into new categories for emerging and non-U.S. developed markets. The company will begin using the new format when it releases its fiscal first quarter 2014 results in January.

"Our new revenue reporting format more closely reflects the way we operate our business, providing our stakeholders with enhanced transparency," said Charles Dockendorff, Executive Vice President & CFO Covidien.