Cochlear trims profit forecasts

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This was published 14 years ago

Cochlear trims profit forecasts

By Eli Greenblat

Shares in Cochlear fell more than 4 per cent today after the bionic-ear implant company slashed its 2008-09 profit forecast due to foreign exchange losses and flat global sales of its device.

The company also recorded no donation sales of its Cochlear unit to China after 700 sales in 2008.

Cochlear shares ended down 4.1 per cent, or $2.23, at $52.08

Cochlear said it now expects net profit after tax in fiscal 2009 to grow 13 per cent to $130.5 million, while core earnings were expected to rise 12 per cent to $137.7 million. It has forecast total revenue to grow 15 per cent to $695 million.

In February, Cochlear said it expected core earnings, which is net profit excluding research and development costs, to grow between 15 to 20 per cent for the full year.

In a statement to the market this morning, Cochlear said it had lost $17 million on foreign exchange contracts in fiscal 2009, against a $21.3 million profit in 2008.

The average AUD/USD exchange rate was 76c in fiscal 2009, after 90 cents in fiscal 2008.

"Volatility of foreign exchange rates was experienced throughout the year,'' Cochlear said.

Cochlear posted a 22 per cent rise in first-half profit to $69.94 million. Unit sales contribute roughly 66 per cent of total earnings.

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Cochlear implant unit sales of 18,461 for 2008-09 were up 2 per cent for the period.

The company is the world leader in the hearing implant industry, with a 70 per cent share of the world market for profoundly hearing-impaired recipients of hearing devices.

Cochlear said it would release more detailed information on its 2008-09 financial results, products and updates on the regulatory status of its new technologies at the full year results review on August 11.

egreenblat@theage.com.au


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