Covidien (NYSE: COV), a leading global supplier of healthcare products, today provided an update on its operations in Japan.
The Company confirmed that all of its nearly 1,500 employees in Japan are safe and that its office in Tokyo is undamaged and functional. Covidien's manufacturing facility in Shizuoka and its distribution centers in Shizuoka and Tokyo did not suffer any damage.
Covidien also is in the process of evaluating access to utilities and transportation, which have been impacted throughout the country due to the earthquake and tsunami. Certain of Covidien's local suppliers suffered damage, but the Company expects that raw material inventories will be sufficient to meet local demand until supply chain interruptions are resolved. The Company is working diligently to continue supplying medical devices and pharmaceuticals to its customers in Japan and is in contact with government officials and others in the medical device industry to expedite delivery of critical medical supplies into the country.
Japan represented approximately 8 percent of Covidien's fiscal year 2010 net sales. Covidien also is working closely with disaster relief organizations to support the humanitarian aid effort. The Company will donate at least $1 million in products, corporate grants and employee matching gift funds to support the country.
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