Tuesday, September 1, 2009

Resmed profit rises 33pc to $175m

The company said it was well placed to continue building the business.
"The market for sleep disordered breathing therapy remains highly underpenetrated", chief executive Kieran Gallahue said yesterday.
Resmed, which has a 40 per cent market share of the global business, said that only 1 per cent of the world's population was being treated for sleep apnoea when at least 20 per cent were suffering from the disorder but were undiagnosed.
The company's full-year revenue rose 10 per cent to $US920.7m for the year ended June 30.
"In the fourth quarter of fiscal 2009, we continued to show strong growth year over year," it said. "Our favourable mix of product sales and market share gains led to a 20 per cent increase in the Americas over the prior-year quarter, resulting in $US134.2m in revenue.
"Sales outside the Americas were impacted by currency movements, in particular the depreciation of the euro against the US dollar," Mr Gallahue said.
"As a result, sales outside the Americas decreased by 4 per cent to $US117.8m but were up 10 per cent in constant currency terms."
Analyst Stuart Roberts of Southern Cross said he was impressed with Resmed's robust results, cost control and increased margins. "Resmed's business is so well balanced that any foreign exchange hiccups in Europe are made up by its wide operations in the Americas," he said.
"The US federal government is also considering testing pilots, train and truck drivers for sleep apnoea disorders to prevent accidents when they fall asleep on the job. This will be a good move for Resmed's business."
Deutsche Bank said Resmed's strong result and gross margins growth reflected the company's operating efficiencies.
Market growth was expected to continue to remain resilient, with the economic downturn having a limited effect on Resmed's operations.
The company continued to invest in R&D, devoting 7 per cent of revenue, or $US17m, to R&D expenditure.
"R&D outlays reflect Resmed's continuing commitment to innovation within its product portfolio, as well as an ongoing commitment to clinical research and product development," the company said.
Resmed shares rose 15c to $5.25 yesterday.

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