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Hill-Rom Reports Second Quarter Financial Results
Date:5/4/2009

January 2009, lower Liko margins associated with the valuation of acquired inventories and Liko integration costs. Adjustments in the prior year include costs associated with the spin-off of the funeral services business, primarily a stock modification charge and a loss on the extinguishment of debt. Unless otherwise indicated, amounts in the current quarter include the results of Liko, acquired on October 1, 2008.

Management Comments

"Consistent with our previous outlook, U.S. hospital and extended care customers continued to take a very cautious view toward capital spending as a result of recessionary concerns, yet our International and Post Acute businesses held steady. Our sales results also suggest that Hill-Rom is faring about the same as other capital equipment-intensive medical technology companies," commented Peter H. Soderberg, president and CEO of Hill-Rom. "In spite of the current softness in U.S. hospital capital equipment demand, we are maintaining our on-going multi-year growth strategy, while accelerating our efforts to reduce costs in both supply chain and other expense areas. We are pleased with the first six months of performance by our new Liko unit, and continue to integrate this business into our global and cross-continuum businesses as anticipated. We believe these efforts will position the company for future growth in anticipation of a return to more normalized customer demand."

Soderberg continued, "As a result of our manufacturing, service, and operating expense cost control initiatives, gross profit and operating profit margins, as adjusted, expanded both sequentially and year-over-year. We limited the decline in adjusted operating income to 2.2 percent, while only slightly reducing our investments in selling and R&D. While we cannot predict the timing of when hospitals and other providers will return to more normalized capital acquisition behavior, we should be wel
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SOURCE Hill-Rom Holdings, Inc.
Copyright©2009 PR Newswire.
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