Steris PLC (NYSE: STE) in the fourth quarter of FY 19 has reported 7% increase in the revenue to $768.2 million compared with $716.0 million in the fourth quarter of fiscal 2018, with growth across all segments. The constant currency organic revenue grew 9% for the fourth quarter of FY19.
Moreover, during the fourth quarter of FY 19, Healthcare Products revenue has grown by 7% to $386.6 million compared with $360.0 million in the fourth quarter of FY18, on the back of 10% rise in capital equipment revenue, 7% increase in service revenue and 4% rise in consumable revenue in the fourth quarter. Healthcare Products operating income is of $106.7 million in the quarter compared with $86.4 million in last year’s fourth quarter. The increase in profitability was primarily on the back of the increased volume, favorable mix and operating efficiencies. Applied Sterilization Technologies grew 7% to $143.1 million during FY19 fourth-quarter revenue compared with $133.5 million in the same period last year. The revenue growth of the segment is driven by increased volume from the segment’s core medical device Customers. Healthcare Specialty Services revenue rose by 11% in the quarter to $135.5 million compared with $122.1 million in the fourth quarter of fiscal 2018. Healthcare Specialty Services operating income was $19.8 million compared with $14.4 million in last year’s fourth quarter, driven by the additional volume and improved productivity. Life Sciences fourth-quarter revenue rose by 3% to $103.0 million compared with $100.3 million in the fourth quarter of fiscal 2018, due to 14% growth in consumables and 2% growth in service revenue. Capital equipment revenue fell by 9% in the fourth quarter compared with a strong quarter in the prior year.
Additionally, STE has declared a quarterly interim dividend of $0.34 per share. The dividend is payable June 28, 2019 to shareholders of record at the close of business on June 12, 2019.
For FY 2020, the company expects constant currency organic revenue growth to be in the range of 5-6%. Adjusted earnings per diluted share are expected to be in the range of $5.28 – $5.43. Free cash flow for FY20 is expected to be approximately $300 million, and capital spending is expected to be approximately $280 million.