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Haemonetics Reports 2nd Quarter Fiscal 2014 Revenue Up 8%; Adjusted Operating Margin Up 260 Basis Points; and $0.66 Adjusted EPS Up 24%
Date:10/28/2013

nd ramping up to approximately $40-$45 million of annual cost savings by fiscal 2018.  There is no net impact expected in fiscal 2014 as redundant capacity designed to mitigate the risk of the technology transfers will offset savings.

FISCAL 2014 GUIDANCE Plasma collections are strong and the Company continues to expect 7-9% growth in Plasma disposables in fiscal 2014.

Blood center revenue in the U.S. continues to be pressured by diminishing red cell demand, as hospitals focus on improving blood management and decreasing the frequency of allogeneic transfusions.  Available data indicates that transfusion reductions previously expected to occur over the next 5-10 years are now anticipated to accelerate in less than two years.

Specifically, best demonstrated practices globally indicate that average red cell transfusions are likely to decline from the current level of about 40 transfusions per 1,000 in the U.S. population to a new level of approximately 33 transfusions per 1,000 by the end of fiscal year 2015.  This means that blood collections in the U.S. are now expected to decline by about 8% in each of fiscal years 2014 and 2015. 

The Company now expects blood center revenue to decline 5-8% on an organic basis.  Hospital products are still expected to grow 0-3%, but in light of first half results and an expected continued weak market for OrthoPAT disposables, there is a bias toward the lower end of that range.  Software Solutions is still expected to grow 5-7%. 

Overall fiscal 2014 organic revenue is expected to grow 2-4% in constant currency and 0-2% on a reported basis, which includes the impact of Yen weakness upon expected Japanese revenue.  Whole blood revenue is expected to be approximately $190 million for fiscal 2014, reflecting an expectation for reduced collections in the near term.  Thus, total revenue growth is estimated in the range of 5-7%.Adjusted gross margin is expect
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SOURCE Haemonetics Corporation
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