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Corin Swings To Fiscal Year Loss On Weak Cormet Sales

LONDON -(Dow Jones)- Orthopedic device company Corin Group PLC (CRG.LN) Monday said it swung to a full-year loss following inventory write downs caused by weak U.S. sales of its Cormet hip resurfacing system.

Still, overall the company beat expectations, sending its shares up almost 10% , although analysts said it was too early to tell if a new strategy will be enough to cope with an expected slowdown in growth in the orthopedics market this year.

Corin said 2008 revenue advanced to GBP39.8 million from GBP37 million a year earlier, ahead of analysts’ consensus of GBP37.2 million. Sales outside the U.S. rose 21%, boosted by the weak pound and new products like the Metafix cement- less hip.

However, Corin reported a pretax loss of GBP3.9 million compared with a profit of GBP2.8 million in 2007. It said a GBP5.2 million write-down in the value of its inventories following disappointing Cormet sales weighed on earnings, as did a decision to phase out some products and the costs of a failed acquisition.

Josh Sandberg

Josh Sandberg is the President and CEO of Ortho Spine Partners and sits on several company and industry related Boards. He also is the Creator and Editor of OrthoSpineNews.

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