Italy's Sorin Group likely wants to put its 2012 second-quarter behind it as quickly as possible, after earthquakes ravaged both revenue and net profit. But the cardiac device giant still eked out a profit and some of its individual division gained sales. And sales of heart-lung devices, among other equipment lines, are growing steadily.
Sorin finished the second quarter with revenues of more than €188 million ($230.2 million), which decreased year-over-year by just under 2%. Sorin said that earthquakes that struck northern Italy at the end of May hurt production and negatively impacted revenues during the quarter by about €17 million ($20.8 million). Net profit reached €7.4 million ($9 million), but Sorin said the earthquakes and their aftermath dampened that figure by about €11 million (over $13.4 million).
Overall for 2012, Sorin said it continues to expect an earthquake-related impact of between €90 million and €100 million for 2012, or as much as $122 million.
Despite earthquake-related production challenges, Sorin said its cardiopulmonary business unit generated a 4.4% boost in sales, thanks to growth in Japan, Canada and other emerging markets. Cardiac rhythm management sales dipped under 1% during the quarter, however, due in part to reimbursement adjustments in Japan. But Sorin credited Europe, emerging markets and the U.S. with partially offsetting this. Heart valve sales grew steadily however, jumping 2.3% over the same period in 2011, thanks to a shift to more biological valves in Europe and the United States, as well as success once again in--you guessed it--emerging markets.
In late June, Bloomberg reported that private equity firm Charterhouse Capital Partners approached Sorin shareholders about a buyout worth about $1.2 billion. The company has used July, however, to quietly diversify its cardiac medical device offerings. The company invested $8 million into Cardiosolutions, a developer of less invasive devices and surgical tools for various heart conditions. Sorin also snatched up California Medical Laboratories for $14 million, accessing that company's cannulae and catheters for cardiac surgeries.
- read the earnings release