Cochlear sees Growth in the Horizon

Submitted by Jim Thesiger on 21 October, 2009 - 04:32

Despite the considerable uncertainty in the worldwide economy, Australia based renowned hearing solution manufacturer and supplier Cochlear (COH) has forecasted a positive outlook for its business. According to the chairman of the company Tommie Bergman, Cochlear is currently standing in a strong position and is expected to boost its earnings through its newly launched products. Mr. Bergman said that the record investment that was made in the development and research sector along with investments in internal capabilities and growth initiatives will play the major role on the company’s future progress. He also added that Cochlear managed to obtain record revenue along with profit and cashflow during a time when there was considerable amount of uncertainty in the global economy and significant volatility in the foreign exchange markets.

In his statement, Cochlear chairman also stated that the company was right on target to go forward with a fresh batch of new products that are expected to come into the market at the end of the year. Company revenue reached the $694.7 million mark adding 15 percent while net profit after tax increased 13 percent to $130.5 million and the operating activities have generated $146.6 million of cash. Mr. Bergman said that the investment of his company in R&D touched a record $76.7 million which is 21 percent more than the earlier year investment something that helped the hearing solution maker to hold a strong stance where it had a worldwide market share that ranged within 65 percent and 70 percent.

While talking about the remuneration disclosures of the company, the chairman mentioned that his company has always maintained high level of transparency in the remuneration disclosures. The board was very much sensitive at this point and took watchful approach to executive remuneration and non-executive director by suspending any changes to remuneration by a six month period. Cochlear saw a 20c rise in its stock price on Tuesday closing the day at $64.10.