Cochlear Ltd has booked a 19% lift in annual net profit, and says the dynamics of the hearing implant industry remain positive.
Cochlear told the ASX yesterday that net profit in 2010 was $155.2 million, up from the $130.5 million earned in the 2009 year.
It was a record profit for the company.
The company said sales were up 6% to $734.8 million (up 12% in constant currency).
"Due to 4% margin expansion earnings before interest and tax rose 20% to $220.5 million," the company told the market.
A final dividend of 105c, up 11% from 95c in 2008-09 will be paid, making $2.00 a year for the whole, up 14%.
Cochlear said its latest generation hearing implant, Nucleus 5, and a software update would drive sales growth in the current year.
"The Cochlear Nucleus 5 System is the latest generation cochlear implant and sound processor and includes a wireless assistant for ease of patient use.
"This is the fifth generation cochlear implant that Cochlear has released in 28 years and the eighth generation sound processor, the company explained.
"The Cochlear Nucleus 5 represents significant advances in manufacturing scalability, as well as improvements in recipient useability, miniaturisation, reliability and, most importantly, speech performance in difficult listening situations.
"The launch of the Nucleus 5 System has now been rolled out in nearly 50 countries.
"The launch of the Nucleus 5 has resulted in a game change across multi dimensions, including recipient hearing performance, miniaturisation, scalable manufacturing and the building blocks for scaling the clinical pathway.
"Nucleus 5 will continue underpinning growth in the 2011 financial year, and software enhancement available towards the end of the calendar year will facilitate upgrade processor sales.
"The dynamics of the implantable hearing device industry remain positive in terms of cost-effective, life-changing outcomes driving market growth," Cochlear said in a statement.
The company said that in the year to June, Cochlear implant (CI) sales which included accessories and sound processor upgrades were $603.7 million, down 2%, up 13% in constant currency.
"Cochlear implant unit sales increased 13% to 21,023 units, with second half unit sales up 20% reflecting the momentum of the launch of the Nucleus 5 which commenced in the first half.
"This momentum meant that the majority of implants sold in the second half of F10 were Nucleus 5.
"Baha sales of $92.5 million grew 9% in constant currency (down 5% in reported currency)."
Regional sales reflected growth in constant currency in all regions:
"Americas sales of $307.6 million were up 18% in constant currency (2% in reported currency) following the Cochlear Nucleus 5 product releases. EMEA (Europe, Middle East and Africa) sales of $291.5 million were up 7% in constant currency (down 9% in reported currency).
"The Cochlear Nucleus 5 launch drove double digit growth in the developed countries where it was released.
"Tender sales were variable and overall were down on the prior year. Asia Pacific sales of $97.1 million were up 5% and 13% in constant currency. This included 500 units sold into China for the donation program," Cochlear said.
Cochlear shares fell 2% yesterday, or $1.42, to $69.86.
Mining and engineered products provider Bradken has reported a 9.6% lift in full year net profit and says further growth is on the cards in 2010-11 as it looks to boost operating earnings by 15% to 20%.
Bradken booked net profit of $70.441 million in the 12 months to June 30, 2010, up from $64.3 million in the prior corresponding period, the company told the ASX yesterday in its earnings report and statement.
Revenue fell 17.6% to $1.01 billion but despite this, managing director Brian Hodges said the profit rebounded in the second half.
“Profit performance rebounded in the second half, to a record six months EBITDA of $96.3 million as the businesses recovered from the GFC with market conditions improving.
"The Rail business recorded a very strong profit result on the back of good volume and significant cost reductions in our Chinese operation.
“Strong cash performance, without the need for a gearing motivated equity raising has allowed us to significantly reduce debt to a conservative position and provide balance sheet flexibility going forward,” Mr Hodges said.
The Directors have declared a fully franked final dividend of 21c a share, an increase of 62% over the FY09 final dividend. The payout for the year is 34c, up from the 23c a share paid in depressed 2009.
"Bradken’s business strategies remain unchanged, with the focus on key strengths in the design, manufacture and supply of consumable products to the mining, energy and rail industries," Mr Hodges said in yesterday’s release.
"We will continue to take advantage of growth in our core resources and energy markets, loo
