Covidien reports growth in first quarter of fiscal 2012

Covidien has hailed its strong start to the 2012 fiscal year after experiencing five percent growth on a year-on-year basis during the first quarter.

The medical technology firm generated $2.9 billion (1.84 billion pounds) in net sales during the three months ending on December 30th 2011, with its key medical device business unit seeing a six percent improvement.

Encouraging sales gains, record gross and operating margins and double-digit earnings growth were all highlighted by president and chief executive officer Jose Almeida, who noted the firm's energy and vascular products as particularly strong performers.

Other highlights of the quarter include Covidien's increased research spending and investments in emerging markets, while it also announced plans to spin out its pharmaceutical business unit, a move that will strengthen its future focus.

Mr Almeida said: "We expect that our broad product portfolio, robust pipeline of new products and ongoing strategic investments funded by our strong cash flow will drive superior operational results for the remainder of 2012 and beyond."

Last week, the firm announced that Mr Almeida will take on additional responsibilities this March when he inherits the position of chairman from Richard Meelia.