Invacare 2008 Annual Report Download - page 44

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Net Sales. Consolidated net sales for 2008 increased 9.6% for the year, to $1,755,694,000 from
$1,602,237,000 in 2007. Foreign currency translation increased net sales by two percentage points while
acquisitions increased sales by less than a one percentage point. The remaining increase was primarily driven by
performance in NA/HME and Europe; however, sales growth was achieved by all segments. NA/HME
recognized double-digit sales growth in all major product lines, except Rehab, which had 9% growth, excluding
Consumer Power products. European net sales growth resulted from volume increases in most regions, especially
the United Kingdom, which benefited from new product introductions, including the HomeFill®oxygen delivery
system.
North America/Home Medical Equipment
NA/HME net sales increased 10.8% in 2008 versus the prior year to $741,502,000 from $669,364,000 with
acquisitions increasing net sales by one percentage point while foreign currency translation did not have a
material impact. These sales consist of Rehab (power wheelchairs, custom manual wheelchairs, personal mobility
and seating and positioning), Standard (manual wheelchairs, personal care, home care beds, low air loss therapy
and patient transport), and Respiratory (oxygen concentrators, HomeFill®oxygen delivery systems, sleep apnea,
aerosol therapy and other respiratory) products. Standard product line net sales improved by 15.5% in 2008,
driven by increased volumes in manual wheelchairs, patient aids and beds. Rehab product line net sales increased
by 4.2% in 2008, despite volume declines in our consumer power product line resulting from the Company’s
previous decision to terminate sales to a large national account. Excluding consumer power products, Rehab
product line net sales increased 9.2% driven by volume increases in custom power and custom manual
wheelchairs. Respiratory product line sales increased by 11.3% in 2008, primarily attributable to increased unit
volumes of oxygen concentrators and HomeFill®oxygen delivery systems.
Invacare Supply Group
ISG net sales increased 3.4% in 2008 over the prior year to $265,818,000 from $256,993,000. Acquisitions
and foreign currency translation had no impact on the sales increase. These sales consist of ostomy, incontinence,
diabetic, wound care and other medical supply products. The increase is primarily attributable to home delivery
program net sales and private label brand net sales.
Institutional Products Group
IPG net sales increased 13.3% in 2008 over the prior year to $99,662,000 from $87,967,000. Foreign
currency translation did not materially impact net sales. These sales consist of bed, furniture, home medical
equipment, and bathing equipment products sold into the long-term care market. The increase is primarily
attributable to new products introduced late in 2007 including beds, therapeutic support surfaces and clinical
recliners.
Europe
European net sales increased 11.2% in 2008 compared to the prior year to $553,845,000 from $498,109,000
with foreign currency translation increasing net sales by six percentage points. Net sales were strong in most
countries with the exception of Germany due to reimbursement and pricing pressures.
Asia/Pacific
Asia/Pacific net sales increased 5.6% in 2008 from the prior year to $94,867,000 from $89,804,000. Foreign
currency translation decreased net sales by one percentage point. The improvement was the result of volume
increases in the company’s distribution business in New Zealand and at the company’s subsidiary which
manufactures microprocessor controllers. Changes in exchange rates, particularly with the Euro and U.S. Dollar,
can have a significant impact on sales in this segment.
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