Sales abroad boost Medtronic CardioVascular third quarter

SANTA ROSA --  Sales growth outside the U.S. boosted revenue for the Santa Rosa-based division of Medtronic (NYSE: MDT) by 8.1 percent in its fiscal third quarter, the medical device maker reported today.

Global revenue for the quarter, ended Jan. 27, for the CardioVascular division grew to $837 million from a year before, before adjustments for foreign-currency changes. The Minneapolis-based company attributed much of the growth to international sales in emerging markets. Sixty-nine percent of third-quarter sales were from outside the U.S.

Revenues for the company's coronary, structural heat and endovascular and peripheral businesses in that division grew by 3 percent, 10 percent and 17 percent, respectively.

Companywide, Medtronic reported worldwide third-quarter revenue of $3.91 billion, up 1.2 percent from that period last year, Chief Executive Officer Omar Ishrak told investors. Two-thirds of the company saw growth, while one-third, implantable cardioverter defibrillators, decreased by 9 percent, he said.

"I am pleased that a majority of our business mix continued to report strong, consistent revenue growth in the upper single digits," said Mr. Ishrak. "However, this was masked by continued challenges in our U.S. ICD and Spine performance. Stabilizing these businesses along with delivering on our key strategic imperatives of improving execution, optimizing innovation, and accelerating globalization should position us well to deliver long-term sustainable growth."

The company received federal approval last week to begin selling the Resolute Integrity Stent, which is used to repair patients' arteries, in the U.S., which should help the company grow into the $1.5 billion domestic market of stents.


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