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Biotech / Medical : Medtronic (MDT) -- Ignore unavailable to you. Want to Upgrade?

To: Y. Bob Ai who wrote (248)	2/18/1998 6:52:00 PM
From: Carmine Cammarosano	Read Replies (1) \| Respond to of 687

MINNEAPOLIS, Feb. 18 /PRNewswire/ -- Medtronic, Inc. (NYSE: MDT), today reported third-quarter net earnings of $144.1 million, or $0.31 per share (basic), before recognizing non-recurring charges related primarily to the restructuring of its Vascular Business and reduction of its global infrastructure. Pre-charge earnings per share were 14.8 percent above the $0.27 per share (basic) reported in the comparable period a year ago on net earnings of $128.7 million. Revenue for the quarter was $631.4 million, an increase of 10.2 percent on a constant currency basis, or 5.4 percent on an as reported basis, after recognizing negative currency effects totaling $28.2 million. For the first nine months of fiscal 1998, net pre-charge earnings per share of $0.93 (basic) increased 16.3 percent on earnings of $434.2 million. In the same period, revenues of $1,919.8 million increased 11.5 percent on a constant-currency basis compared with $1,797.8 million recorded in the first three quarters of fiscal 1997. However, the $83.9 million unfavorable impact of foreign currency translation reduced the reported revenue growth rate to 6.8 percent. William W. George, chairman and chief executive officer, said, "We are pleased with the strong growth rates of Medtronic's Pacing and Neurological businesses. Our product pipeline, fueled by continued investment in research and development, is the fullest it has ever been. During the remainder of the current fiscal year and throughout fiscal 1999 Medtronic will be introducing significant new generations of pacemaker and defibrillator products based on entirely new technology platforms. "However, disappointing results from our Vascular Business necessitate aggressive action to right-size this organization. We are closing or substantially reducing manufacturing facilities and adjusting the workforce to reduce our cost structure as we increase resources allocated for research and development to improve competitiveness. "In addition," George said, "Medtronic is taking significant steps to reduce manufacturing and administrative costs throughout the company. These actions will significantly strengthen our competitive position in the global health care market, which itself is under increasing cost pressures."