Invacare discontinues respiratory products 

ELYRIA, Ohio – Invacare will discontinue production of respiratory products to focus on its core business of lifestyle and seating and mobility products, the company has announced. 

Invacare expects to discontinue production of respiratory products in the fourth quarter and to fulfill existing customer orders with inventory on hand. 

“After carefully evaluating our strategic options, we have determined that the lifestyle and mobility & seating categories are core to improving Invacare's growth and profitability,” said Geoffrey Purtill, interim president and CEO, in press release detailing its financial results for the third quarter. “As a result, we are discontinuing the production of respiratory products. This will allow us to further streamline our operations and, we expect, to improve profitability by focusing resources on lifestyle and mobility & seating products, which continue to experience strong demand. We will also continue to take a hard look at every aspect of our business, leaving no stone unturned as we position Invacare for the future.” 

Invacare has recorded a restructuring charge of $8.7 million in the third quarter as a result of the decision. 

The company noted that orders for its lifestyle and mobility and seating products were $80.5 million at the end of the third quarter compared to $60.5 million at the end of 2021. 

Invacare says it has identified additional opportunities to drive growth and profitability in 2023 and beyond, including product line rationalization, footprint optimization, supply chain simplification, organization rightsizing and liquidity enhancements. 

The company’s financial results for the third quarter include: 

• Reported net sales were $170.4 million, a decrease of 24%, and constant currency net sales decreased 16.9%. 
• Gross margin was 18.4%, a decrease of 850 basis points, including 510 basis points of decline related to the write-down of respiratory inventory as a result of the decision to discontinue production of respiratory products. 
• Adjusted EBITDA loss was $11.8 million, compared to positive $8.0 million. 
• Net loss was $34.4 million vs. $22.8 million.