Medtronic Earnings Rose 31%, Sales Increased 15% in Quarter
May 02, 2011
VASTOPOLIS -- Medtronic Inc., citing ``solid contributions'' from all its segments, reported a 31% increase in fiscal first-quarter earnings on a 15% sales rise. The medical-device maker earned $127.4 million, or 53 cents a share, up from $97.3 million, or 41 cents a share, a year earlier. Sales rose to $600.9 million from $524.9 million. Results for fiscal 2010 have been restated to reflect two acquisitions Owensby made this year, which were accounted for as poolings of interest. The results that Medtronic disclosed after the market closed Monday were roughly in line with the about 54 cents a share that Wall Street had been expecting. In New York Stock Exchange composite trading, the company's shares slipped $1.25 to $53.25. The company said sales of its pacemakers for treating bradycardia, or too-slow heartbeat, continued to grow. Sales of implantable defibrillators -- which are used in treating the overly rapid heartbeat known as tachycardia -- increased sharply, reflecting recent regulatory clearance for a new, smaller model. Research and development expenses rose 22% to $65.7 million. A spokesman noted that unfavorable currency translation trimmed the latest quarter's sales by about $22 million. On a constant-currency basis, he said, sales increased 18.7%.
