Arrow International Keeps on Target (Motley Fool)

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Arrow International Keeps on Target
Friday October 6, 4:03 pm ET
By Matthew Crews

Over the past couple of years, Arrow International (Nasdaq: ARRO - News), the maker of disposable catheters and heart assist devices, has been a story of capacity constraints and falling operating margins. Two years ago, Arrow implemented a turnaround program to get the company back on the right track. With Arrow's fourth quarter and fiscal 2006 earnings now in the bag, this is a good time to perform a health checkup.

Sales were up 6% from $454.3 million in fiscal 2005 to $481.6 million in fiscal 2006. Management forecasts fiscal 2007 sales to be up another 7% to 9%. There was strength in both its critical-care and cardiac-care business. Growth was particularly noticeable in the European markets where sales were up over 12% for the year. The capacity constraints on sales growth seem to be subsiding now that both the new facilities in the Czech Republic and Mexico are up and running.

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