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Top Line, Bottom Line


Posted by mddiadmin on July 1, 2002

Originally Published MX July/August
2002



COVER STORY

Top Line, Bottom
Line

Sometimes, increasing
a company's bottom line is all about balance. Getting the right balance of product-line
offerings has been a major task for the executives of Edwards Lifesciences (Irvine,
CA) over the first two-plus years of the company's existence.

On
April 3, 2000, Edwards Lifesciences spun off from Baxter International and
began trading on the New York Stock Exchange under the ticker symbol EW.
Winners of an employee contest to articulate Edwards’s new ideals joined
company chairman and CEO Mike Mussallem to ring the opening bell on the
NYSE.

Formed from the
cardiovascular business units of Baxter International, Edwards started its independent
life as a company in need of streamlining. Company leaders thus spent the first
year shedding business units that Edwards did not intend to invest in, including
a majority of the United States and Western European assets and rights related
to its perfusion products (sold to Jostra AG; Hirrlingen, Germany), and the
Novacor mechanical cardiac-assist product line (sold to World Heart Corp.; Ottawa,
ON, Canada).

Edwards
Lifesciences stock price since the company went public in April 2000.

Source: NYSE.

(click to enlarge)

The natural result
of such divestitures was a drop in the company's top line, with net sales decreasing
from $775 million in 2000 to $692 million in 2001—a fall of 8.2% at constant
currency-exchange rates. Excluding the divestitures, Edwards's revenues in its


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