Invacare Corporation Reports Strong Third Quarter Results
ELYRIA, Ohio--(BUSINESS WIRE)--Invacare Corporation (NYSE: IVC) today announced its financial results for the third quarter and nine months ended September 30, 2008.

HIGHLIGHTS FOR QUARTER

Organic sales increase of 9.3% in the quarter
Adjusted earnings before income taxes(c) improved by over 40%
Adjusted earnings per share(a) of $0.42 compared to $0.34 last year for third quarter
Free cash flow(d) of $16 million generated in quarter
CONSOLIDATED RESULTS

Earnings per share on a GAAP basis for the third quarter were $0.36 ($11.7 million net earnings) as compared to earnings per share for the same period last year of $0.36 ($11.6 million net earnings). Adjusted earnings per share(a) were $0.42 for the third quarter of 2008 as compared to adjusted earnings per share(a) for the same period last year of $0.34. Adjusted net earnings(b) for the quarter were $13.4 million versus $10.8 million last year. Both adjusted earnings per share(a) and adjusted net earnings(b) for the third quarter 2007 exclude a one-time net tax benefit primarily attributable to new tax laws adopted in Germany last year. Adjusted earnings before income taxes(c) for the third quarter were $17.5 million as compared to $12.4 million for the third quarter last year. The significant improvement in adjusted earnings before income taxes(c) resulted primarily from organic sales growth (from both volume and selective price increases), cost reduction activities and reduced net interest expense, which were partially offset by increases in commodity costs.

Net sales for the third quarter increased 13.4% to $461.8 million versus $407.3 million last year. Foreign currency translation increased net sales by four percentage points and acquisitions increased net sales by less than a percentage point. Organic net sales for the quarter grew 9.3% over the same period last year driven by improved performance in all segments, particularly for North America/Home Medical Equipment (NA/HME) and Institutional Products Group (IPG). Reflecting the improved stability and sequential improvement of this business segment, the NA/HME organic net sales increase of 12.7% for the quarter represents the fourth consecutive quarter over quarter increase. IPG’s organic net sales increase of 30.4% for the quarter was driven primarily by new product introductions. While European organic net sales grew at 3.1% for the quarter, this growth rate was below the first half growth rate of 7.4% primarily as a result of reimbursement and pricing pressures.



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