Hurricane Maria To Impact Medtronic plc. (NYSE:MDT) Financial Results

111

Medtronic plc. Ordinary Shares (NYSE:MDT) has announced that its Puerto Rican operations had been restarted but warned that the recovery would happen at a gradual pace and would be expensive. The medical devices manufacturer revealed that damage resulting from Hurricane Maria would have an impact on its non-GAAP earnings and revenue. This financial impact is expected to be in the range of $250 million and this is likely to be reflected in the quarter that ends on October 27.

According to Medtronic all its four business groups conducted some of their manufacturing in the hurricane-ravaged island while some damage had been inflicted in all its facilities. The four business groups include Diabetes Group, Restorative Therapies Group, Minimally Invasive Therapies Group and Cardiac & Vascular Group. The worst-hit business groups are expected to be Restorative Therapies Group and Minimally Invasive Therapies Group.

Diesel-powered backup generators

Some operations have resumed in some of Medtronic’s sites but full operations are being limited by the fact that diesel-powered backup generators are being used and the fuel was scarce until new supplies began getting to the island a few days ago. The level of manufacturing is expected to increase in coming weeks.

In the island, the number of employees that Medtronic has is over 5,000. So far the medical devices firm has been able to account for 90% of them and is offering them power generators, food, water as well as other supplies necessary for day-to-day use. Medtronic has also unveiled a fund for emergency assistance which has the support of the Medtronic Foundation and which is aimed at soliciting aid from employees of the company located in different parts of the world.

More medical technology firms

“We are eternally grateful for the commitment of our Puerto Rican colleagues who have returned to work to restore our operations — many of whom have lost everything in this storm,” said the chief executive officer of Medtronic, Omar Ishrak.

Other medical technology firms which have operations in Puerto Rico include Merck & Co., Inc. (NYSE:MRK), Boston Scientific Corporation (NYSE:BSX) and Abbott Laboratories (NYSE:ABT).

In Monday’s trading sessions shares of Medtronic Plc fell by 3.61% to close the day at $76.93 a share.

An ad to help with our costs