While announcing its financial statistics for the third quarter of 2016, Invacare Corp. also noted it is “transforming” its business to focus on complex rehab technology (CRT), a move that is currently impacting its financial results.
Compared to the third quarter of 2015, Invacare said its net sales for the third quarter of 2016 decreased 5.5 percent. It described those results as “consistent with expectations from phase one of the company’s transformation.”
In a news announcement, the manufacturer said it is changing “from being a generalist durable medical equipment company to one that focuses its strong technical capabilities on solving complex clinical needs for post-acute care.”
In his summary, Chairman/CEO/President Matthew E. Monaghan said, “Progress continued in the third quarter with our transformation from being a generalist durable medical equipment company to one more focused on solutions for clinically complex and post-acute care. In the quarter, we saw the positive results of mix shift toward the complex rehabilitation products and away from less strategic product groups, including the sale of our Garden City Medical business and decrease in sales of other less accretive product lines.”
As an example of Invacare’s CRT focus, Monaghan referenced the new Alber Twion power-assist system for manual wheelchairs. The Twion features a smartphone interface that enables the consumer to summon his or her wheelchair.
Last month, Invacare named Ralf Ledda, whom Monaghan described as a leader at Alber for the last 21 years, its new senior VP and general manager of Invacare’s European operations.
“In the quarter, we made the right kind of progress in our transformation, and had good uptake of our leading products, as well as positive response of our business associates and customers to these changes,” Monaghan said.
Invacare reported that third-quarter North America/home medical equipment net sales decreased 14.5 percent to $98 million. That’s in comparison to $114.6 million during 2015’s third quarter.
In its news announcement, Invacare said, “The decreases in net sales and constant currency net sales were driven by lifestyle and respiratory products partially offset by mobility and seating products.”
