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Hill-Rom Reports Fourth Quarter Revenue Growth of 14.1 Percent to $424 Million and Adjusted Earnings Per Fully Diluted Share From Continuing Operations of $0.58, an Increase of 52.6 Percent From the Prior Year
Date:11/10/2008

y nine percent, led by over 40 percent growth in our ICU patient support systems, and over 30 percent growth in our proprietary therapy support system capital and rental products. Our International and Surgical segment revenue once again showed strong growth of 23.0 percent (18.2 percent on a constant currency basis), reflecting continuing market share gains and a particularly strong mid-20 percent sales increase in Europe. Finally, our North America Post-Acute Care segment saw nearly 30 percent growth, reflecting double digit sales gains across all major product categories," Soderberg continued.

As previously disclosed, Hill-Rom recorded two special charges in the fourth quarter totaling $20.5 million (pre-tax) related to streamlining the organization and improving profitability in our MEMS business. Of this amount, $13.8 million will be non-cash in nature. Annual savings resulting from these specific actions are expected to approximate $18 million, most of which will impact 2009. These savings are reflected in financial guidance.

Commenting on the previously announced acquisition of Liko on October 1, 2008, Soderberg stated, "We have now operated Liko for nearly six weeks, and we continue to be very enthusiastic about the opportunities to enhance patient and caregiver outcomes through the combination of Liko with Hill-Rom. The acquisition, which is expected to be accretive in the first year, is highly consistent with our strategies to expand both our global footprint and presence across the care continuum."

"We are reaffirming financial guidance introduced at our investor conference early last month. Our outlook anticipates more conservative organic revenue growth reflecting moderation of some customers' purchasing patterns, recovery of credit markets occurring early in calendar 2009, and recessionary pressures continuing until mid-2009. Nevertheless, we expect margin expansion and productivity initiatives, combined with the accretive Liko acq
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SOURCE Hill-Rom Holdings, Inc.
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