Covidien outlines changes to financial reporting methods

Covidien has underlined its commitment to operational transparency by announcing a series of new changes to its revenue reporting format.

From October 1st 2013, results for the medical supplies business in western Europe will be included in the medical devices segment data, while geographic sales reports will be broken into US, non-US developed market and emerging market sections.

Product line sales now will be reported in the new categories of surgical solutions, vascular therapies and respiratory and patient care, with certain costs previously included in corporate expense – including IT and shared service charges – will now be reported publicly.

The company also updated its revenue guidance for the 2014 fiscal year, during which it expects to achieve year-on-year sales growth of between two and five percent.

Charles Dockendorff, executive vice-president and chief financial officer of Covidien, said: "This approach underscores our continuing commitment to communicating our business results clearly and consistently."

This comes after the company announced earlier this month that it will be acquiring Given Imaging in a deal worth $860 million, expanding its position in the gastrointestinal market.