Invacare Corp. cut some of its losses from a rough fiscal 2014, but the company's CEO nonetheless decided to fire a key executive and take over leadership of the medical equipment manufacturer's North American businesses.
The Elyria, Ohio-based firm was able to rein in its losses in the first three months of 2015, rebounding slightly from disruptions caused when the Food and Drug Administration forced one of its key manufacturing facilities to significantly scale back operations. On Tuesday, Invacare fired John Remmers, the company's executive vice president and general manager of North America and global product development since November, according to regulatory filings.
CEO Matthew Monaghan announced he would run the company's North America/Home Medical Equipment segment and its Institutional Products Group, which makes beds, patient-handling products and other furniture.
“In particular, I believe that the North American business needs specific attention in order to deliver improved financial results, and my direct involvement in the business will be critical,” Monaghan said.
Invacare reported a $7.3 million loss during the three months ended March 31, 60% less than the $18 million loss suffered during the same period in 2014. Sales fell 5% to $289 million, though net sales of products manufactured at its Taylor Street plant were up about 9%. The Taylor Street plant, near Invacare's headquarters, is one of two facilities where the FDA found problems with Invacare's beds.
The FDA has required that Invacare's corporate and Taylor Street facilities undergo three audits by third-party experts. Invacare said about a year ago that the FDA had accepted its first two reports, but again said it is unable to predict the timing or outcome of the third audit, or whether it will be accepted by the FDA.
Once the three audits are accepted, the FDA will inspect the two facilities and determine whether they should be allowed to resume full operations.
Invacare might have suffered worse losses if not for a 16% cut in selling, general and administrative expenses and a 4% drop in the cost of products sold. The company laid off 150 employees and 40 temporary workers in August as a part of a restructuring initiative that was expected to yield about $15 million in pretax savings.
