Medtronic profits rise 28 percent, match estimates
MINNEAPOLIS, Feb 23 (Reuters) - Medical device maker Medtronic Inc. (NYSE:MDT - news) reported on Wednesday a 28 percent rise in third-quarter operating profits that matched expectations, as strong defibrillator and pacemaker sales helped results.
Medtronic reported third-quarter pre-charge net income of $275.3 million, or 23 cents per diluted share, compared with net income of $215.9 million, or 18 cents per diluted share in the comparable year-ago period.
Including the effects of the one-time charges associated with the Xomed Inc. merger, Medtronic reported third-quarter net earnings of $263.2 million or 22 cents per diluted share.
A survey of Wall Street analysts by First Call/Thomson Financial put Medtronic's third-quarter earnings at 23 cents a share.
Revenues of $1.26 billion were 20 percent above the $1.06 billion reported in last year's comparable quarter on a constant currency basis. Foreign exchange reduced the revenue increase by $18 million and the growth rate to 18 percent, the company said.
Financial results have been restated to reflect pooling-of-interests mergers and exclude one-time charges related to the mergers of Xomed in November 1999, as well as the mergers of Arterial Vascular Engineering Inc., and Sofamor Danek Group Inc., in the 1998 third quarter.
Medtronic said its higher third-quarter revenues and profits were due to sales momentum in its vascular unit, physician preference for Medtronic's implantable and external defibrillators, double-digit growth rates in its pacemaker lines and strong growth from the broadened neurological and spinal product portfolio.
``Medtronic's superior product technologies are winning in the marketplace, evidenced by market share gains in all of our major businesses,' William George, Medtronic's chairman and chief executive officer, said in a statement.
``Integration of our mergers has gone well and is paying dividends in the form of accelerating growth rates, rising profitability and expanded platforms for continued growth in each of our markets,' he said.
biz.yahoo.com
Revenues up 20%. Nice.
Jack |
