Invacare sets stage for cost reductions

Tuesday, May 9, 2017

ELYRIA, Ohio – Invacare reported $231.7 million in net sales for the first quarter of 2017, a 10% decrease compared to the same quarter last year. For its North America/HME business segment, Invacare reported $119.5 million in net sales for the first quarter, a 2.1% decrease. The company says net sales declines for North American/HME were due to the discontinuation of certain product categories and lower sales of respiratory products. It also noted that it discontinued sales of consumer power wheelchairs in the fourth quarter of 2016. “Net sales of basic aids for daily living continued to decline, while mobility and seating sales, excluding discontinued consumer power products, increased in the North America/HME segment, where the transformation is most significant,” said Matthew Monaghan, chairman, president and CEO. Invacare says the next phase of its transformation is reducing costs and driving efficiency around the more clinical core of its business. “This is the area we expect to grow in the long-term by emphasizing greater clinical value and better economics built around sustainable innovation,” Monaghan said. Invacare also highlighted its recent milestone of having the U.S. Food and Drug Administration approve a third and final certification report from its third-party auditor. That paves the way for the FDA to re-inspect its corporate headquarters and Taylor Street facilities in May, and for it to lift a consent decree that has limited its ability to make and sell certain products from the two facilities.