(RTTNews) - Healthcare products company Covidien Plc (COV: News ) reported Tuesday a sharp fall in profit for the fourth quarter, reflecting higher one-time charges as well as unfavorable foreign exchange. Excluding items as well as impact of Oxy ER, adjusted earnings increased from last year. Further, the Dublin, Ireland-based company, a former subsidiary of Tyco International Ltd. (TYC: News ), raised its fiscal 2010 sales growth view.

Fourth-quarter net income was $56 million or $0.11 per share, sharply lower than prior year's $409 million or $0.81 per share.

The latest quarter results included income from discontinued operations of $1 million, while prior year results included loss of $16 million or $0.03 per share. On a continuing operations basis, income fell to $55 million or $0.11 per share from $425 million or $0.84 per share in the same quarter last year.

The fourth-quarter 2009 results included several one-time charges, comprising reclass of discontinued operations of $72 million or $0.14 per share, legal charge of $36 million or $0.07 per share, environmental charge of $32 million or $0.06 per share, loss on divestiture of $17 million or $0.03 per share, in-process research and development charges of $36 million or $0.07 per share, restructuring charges of $30 million or $0.06 per share, and losses on tax matters of $207 million or $0.41 per share. These were partly offset by positive impact of tax sharing agreement of $122 million or $0.24 per share.

The prior year results included restructuring charges of $1 million, and loss on shareholder settlements, net of insurance recovery of $7 million or $0.01 per share, more than offset by positive impact of tax sharing agreement of $12 million or $0.02 per share, and gains on tax matters of $42 million or $0.08 per share.
On an adjusted basis, excluding items, quarterly earnings from continuing operations were $363 million or $0.72 per share, compared to $379 million or $0.75 per share a year ago. The last year's adjusted earnings were $345 million or $0.68 per share, excluding the impact of oxycodone hydrochloride extended-release tablets, or Oxy ER, of $34 million or $0.07 per share.

In the quarter, pre-tax income from continuing operations fell to $392 million from last year's $526 million.

Quarterly net sales edged up to $2.697 billion from $2.690 in the prior year quarter, with unfavorable foreign exchange of $54 million reducing the quarterly sales growth rate by approximately 2 percentage points.

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