Invacare Corporation’s chief executive says the US-based company is starting to benefit from four years of foundation building, which has produced strong growth in Europe and is helping the North American business to return to profitability.
Providing a business update at the Baird Global Healthcare Conference in New York this month, Matt Monaghan discussed Invacare’s “transformation”, the impact of additional US tariffs and reaffirmed the company’s 2019 and 2020 guidance.
Mr Monaghan said: “After four years of foundation building, we are pleased to see the results having a positive effect on our reported financial performance.
“Our regions continue to focus on commercial excellence while the rest of the business is taking advantage of global synergies and expertise.
“As a result, new product introductions are coming at a more rapid pace, cash flow is improving, and overall operating results reflect better efficiencies. We expect these trends to continue through 2020.”
On 1 September the US began imposing 15% tariffs on £90 ($112) billion of Chinese imports, which the company estimates will cost it around £160,000 ($200,000).
The company said it is continuing to take supply chain actions to mitigate the previously announced tariffs, in addition to the 15% tariffs that will become effective on 15 December.
As part of its efforts to reduce operating losses, Invacare Corporation reduced its headcount in Q2 2019 and closed its site in Atlanta in April.
Compared to Q2, Q3 has seen 33% improvement (£4.8m) in operating losses in North America. Europe continued to perform well, seeing more than 4% growth in constant currency net sales.
Mr Monaghan said that in North America, Invacare will adjust its portfolio to consistently grow profitability amid cost increases by adding new products, reducing costs and continuing to improve the customer experience.