Hill-Rom Holdings, Inc. announced solid financial results for its fiscal first quarter ended December 31, 2009, and updated its outlook for the full year. Net income grew 39 percent to $19.8 million from $14.2 million in the prior year. Earnings per diluted share of $0.31 increased 35 percent from $0.23 per diluted share in the same period of the prior year. On an adjusted basis, earnings per diluted share of $0.31 increased 24 percent from $0.25 in the prior year. The improved financial performance was the result of continued gross margin expansion in all of Hill-Rom’s major business units.
Hill-Rom’s total revenue of $355.3 million increased 1.1 percent compared to the first quarter of last year. On a constant currency basis, revenue decreased 1.7 percent. Domestic sales declined 3.6 percent to $244.7 million, while international sales increased 13.1 percent to $110.6 million. Excluding the impact of foreign currency, Hill-Rom’s international sales increased 3.3 percent.
“I am pleased with the operating improvements that we delivered during the first quarter,” stated John J. Greisch, president and CEO of Hill-Rom. “We have seen demand levels stabilize over the past several quarters, and despite a challenging macro-economic environment, we achieved solid earnings improvement through margin expansion across all of our major business units. Our improved margins have enabled us to increase investments in new product development and sales channels, while accelerating earnings.”
Financial Guidance Summary for 2010
The Company updated full year 2010 financial guidance as follows. Hill-Rom is reaffirming reported sales guidance of $1.45 to $1.50 billion. This represents an increase of approximately 4 to 8 percent compared to 2009, including a currency benefit of approximately 1 percent for the full year. The Company is increasing adjusted earnings guidance to $1.24 to $1.36 per diluted share. This compares to the company’s previous guidance of $1.20 to $1.36 per share. On a reported basis, earnings per diluted share are expected to be $1.34 to $1.46, including a non-recurring tax benefit of $0.10 per share associated with a favorable tax audit resolution during the second quarter. Cash Flow from Operations for the full year is expected to be in the guidance range of $146 to $159 million.
Hill-Rom is a leading worldwide manufacturer and provider of medical technologies and related services for the health care industry, including patient support systems, safe mobility and handling solutions, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals and information technology solutions. Hill-Rom’s comprehensive product and service offerings are used by health care providers across the health care continuum and around the world in hospitals, extended care facilities and home care settings to enhance the safety and quality of patient care.
For more Information, www.hill-rom.com