Medtronic (a large multi-national medical device maker) will post about $15 billion of consolidated sales this year, and sells more than half of its products into non-US markets, largely in Europe, so it is very much like Schering, in size, market-exposures and geographical reach.
Look ("out below"!) at what the breakaway rise in the US dollar is doing to Medtronic results (now think about whether Schering-Plough can withstand this same reversal of fortunes).
On its latest quarterly earnings conference call yesterday, Medtronic projected a "repatriation" downturn (of sales and profits) of between $400 million and $500 million in all of 2008, and between $700 million and $900 million, for all of 2009, due to the wildly-strengthening US dollar vis-a-vis other currencies.
Here's the Medtronic AP wire story:
. . . .But the U.S. dollar has regained some strength, and Medtronic told investors Tuesday its full-year earnings and revenue could come in $400 million lower than expected as a result.
Medtronic now projects fiscal 2009 revenue of $14.6 billion to $15 billion, down from previous guidance of $15 billion to $15.5 billion. . . .
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