Cochlear Profit Falls 68%

Australian bionic ear manufacturer, Cochlear (ASX:COH) has announced a 68 percent fall in profit. The company's profit directly impacted from a product recall which lost the company 5 percent market share and a write down of $101.3 million.

Key Reporting Figures for Cochlear

• Revenue $779 million – down 4 percent for the year to June 30
• 23,087 implant unit sales, down 6 percent
• Net Profit after tax - $56.8 million for 2012
• Net profit after tax in 2011 was $180.1 million
• In September, Nucleus CI500 series implants were recalled
• Recall cost: $138.8 million before tax, $101.3 million in after tax
• Major driver of growth: Ageing population

Cochlear shares lost 5.12 percent yesterday, closing at $63.00 (with a daily high of $66.15 and low of $61.15. The stock is cum-dividend with 120 cents per share, 84 cents franked, ex dividend date at 26 August 2012.