Arjo cuts forecast as US operations run into trouble
This article was originally published in Clinica
Executive Summary
Swedish medical device manufacturer Arjo saw the profitability of its US operation deteriorate during the first half of its fiscal 1995. As a consequence, the president of US operations William Hardy resigned at the beginning of May and has yet to be replaced. The decline in US profitability together with increased competition, particularly in the patient handling field, and difficult conditions in the UK market have caused Arjo to lower its forecast for full fiscal 1995 from previous levels to a "modest improvement in earnings per share".