StockMarketWire.com - Medical products group ConvaTec lowered its guidance for full-year earnings Monday after its biggest infusion devices franchise customer scaled back inventory requirements.

The company also said chief executive Paul Moraviec would retire.

Full-year organic revenue growth was expected to be flat to 1.0%, from 2.5% to 3.0% previously, while guidance for adjusted earnings (EBIT) margin had also been revised down to range of 23% to 24%, from 24% to 25%.

ConvaTec blamed the weaker outlook on a change in inventory policy by the company's biggest customer in its infusion devices franchise, and to a lesser extent 'challenging' market dynamics in specific markets in advanced wound care.

The weaker outlook comes as the company reported timid growth in the third quarter.

For the three months to 30 September, group total revenue in the third quarter increased 1.5% to $452.2m from a year earlier.

Revenue for the quarter was weighed down by adverse FX changes, the company said.

The company said it was mapping out its cost plan and an update would be provided with the full-year 2018 results in Feb. 2019.

Rick Anderson, currently a Non-Executive Director of ConvaTec and a former Group Chairman of Johnson & Johnson, would assume the position of Interim Chief Executive with immediate effect, until a suitable candidate was appointed to replace Mr Moraviec, the company said.

The search for a new CEO would commence immediately and be led by the Chairman, Sir Christopher Gent and Steve Holliday, the Deputy Chairman, Convatech added.

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