Medtronic Santa Rosa group third-quarter sales increase 5%

SANTA ROSA -- Medtronic's Santa Rosa-based Cardiac and Vascular Group reported worldwide third-quarter sales increased 5 percent from a year before.

Group revenue in the company's third quarter, ended Jan. 25, was $2.1 billion, up 5 percent from a year before when adjusted for currency fluctuations.

Companywide, third-quarter revenue topped $4 billion, up 4 percent on a constant-currency basis from a year before, despite slower sales in major heart and spine devices, according to the company. Quarterly earnings increased nearly 6 percent.

Minneapolis-based medical device maker Medtronic Inc. (NYSE: MDT) employs about 700 in Santa Rosa.

Group sales growth was driven by sales in coronary, endovascular, structural heart and AF solutions, but that was offset by declines in implantable defibrillators, according to the company.

Group international sales of $1.198 billion increased 7 percent on a constant currency basis or 4 percent as reported.

The division includes the Cardiac Rhythm Disease Management unit, where revenues declined by 1 percent to $1.171 billion.

Third-quarter revenue from implantable defibrillators was $654 million, a decline of 2 percent on a constant-currency basis, while revenue from heart pacers was $459 million, or the same as it was a year before.

Coronary revenue was $445 million, growing 19 percent on a constant-currency basis or 16 percent as reported. Sales of drug-coated stents increased 42 percent on a constant-currency basis, driven by continued significant share gains of the Resolute Integrity stent in Japan and strong performances in the U.S. and other global markets.

Structural Heart revenue of $272 million grew 4 percent on a constant currency basis or 3 percent as reported. Growth was driven in part by sales of the CoreValve transcatheter aortic heart valve.

The company reported third-quarter net earnings and diluted earnings per share on a non-GAAP basis were $946 million, or 93 cents a share, an increase of 7 percent and 11 percent, respectively, from a year before. As reported, third-quarter net earnings were $988 million, or 97 cents per diluted share, an increase of 6 percent and 10 percent, respectively, over the same period in the prior year.

"We remain committed to delivering dependable growth in a changing healthcare environment as reflected in our third-quarter performance," said Omar Ishrak, Medtronic chairman and chief executive officer. "Several businesses and regions contributed to our steady growth this quarter, and we are focused on effectively managing headwinds and tailwinds to deliver balanced and consistent overall performance."


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