Covidien Says Currency To Impact FY14 Reported Revenues By 100-125 Bps

(RTTNews) - Healthcare products company Covidien Plc. (COV) Monday revised its revenue guidance for fiscal 2014, stating that foreign exchange, at current rates, is expected to reduce reported revenues by 100 to 125 basis points.

The company continues to estimate that net sales in fiscal 2014 will be up 2 to 5 percent. Sales are expected to be up 3 to 6 percent for Surgical Solutions and up 3 to 6 percent for Vascular Therapies, while Respiratory & Patient Care is expected to see a 1 to 4 percent rise.

The company continues to expect operating margin, excluding the impact of one-time items, to be in the 21.5 to 22.5 percent range.

Two previously announced transactions are not included in the guidance as they have not yet closed. Both transactions are expected to close on or before March 31, 2014.

Further, the firm gave additional details about its previously disclosed realignment of reportable segments and also announced further changes in its revenue reporting format.

Effective October 1, results of the Medical Supplies business in Western Europe are reflected in the Medical Devices segment, consistent with the way that business is managed.

As for Product line sales, Surgical Solutions will include Advanced Surgical and General Surgical, while Peripheral Vascular and Neurovascular will be part of Vascular Therapies. Respiratory & Patient Care will include Patient Monitoring, Airway & Ventilation, Nursing Care and Patient Care.

Geographic sales for the company now will be reported from the U.S., Non-U.S. Developed Markets as well as Emerging Markets.

According to the company, 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 this format from its fiscal first quarter 2014 results in January.

Charles Dockendorff, Executive Vice President & Chief Financial Officer, said, "Our new revenue reporting format more closely reflects the way we operate our business, providing our stakeholders with enhanced transparency. This approach underscores our continuing commitment to communicating our business results clearly and consistently."

COV closed up 0.2 percent on Friday at $65.81.