MEDTRONIC POSTS STRONG EARNINGS GAIN IN SECOND QUARTER
MEDTRONIC POSTS STRONG EARNINGS GAIN IN SECOND QUARTER MINNEAPOLIS, Nov. 21 /PRNewswire/ -- Medtronic, Inc. (NYSE: MDT)
today reported record second quarter net earnings of $38.5 million, or $.65 a share, as revenues rose to $279.0 million.
Earnings increased 34.3 percent over the $28.7 million of the comparable period last year when most costs related to the merger with Bio-Medicus, Inc., were recognized. Excluding the effect of those costs on results a year ago, Medtronic's second-quarter earnings were up 17.2 percent. Per-share earnings in the second quarter a year ago were $.48, adjusted for a stock split in August 1991. Worldwide sales again reflected negative effects of foreign exchange translation but rose 9.6 percent compared with $254.6 million recorded in the period a year ago. On a constant-currency basis, revenue increased 12.9 percent. William W. George, president and chief executive officer, said the second quarter was highlighted by a 6.5 percent increase in U.S. pacemaker unit sales, led by the Medtronic Elite(TM) dual chamber pacemaker which has become the leading product in the pacing market. He also cited strong sales of prosthetic heart valves, guiding catheters for angioplasty and implantable neurological devices. "Medtronic performance in the first half reflected the strong acceptance of its products in the marketplace," George said. Its pacer-cardioverter-defibrillator device (PCD(TM)), with epicardial lead system, remains under consideration by the U.S. Food and Drug Administration (FDA) for pre-market approval and has received excellent acceptance in European markets. Clinical evaluation of the system with transvenous leads is proceeding well. The United States District Court for the Northern District of Illinois is expected to rule shortly on whether three pacemakers currently marketed by Siemens-Pacesetter, Inc., of Sylmar, Calif., infringe a key patent held by Medtronic. On Sept. 23, 1991, the court found infringement by predecessors of the Sensolog III, Synchrony II and Solus units and enjoined their manufacturing, use and sale. The Medtronic neurological business continues to win approval for use of its implantable pain-control devices for added medical indications. The SynchroMed(R) implantable, programmable drug infusion system has been approved by the FDA for the spinal administration of morphine in treatment of non-malignant pain. Approvals for use against cancer pain were received earlier. Medtronic, Inc.., headquartered in Minneapolis, is a leading developer and manufacturer of biomedical devices for improving cardiovascular and neurological health. MEDTRONIC, INC. CONSOLIDATED STATEMENT OF EARNINGS (Unaudited) (In thousands, except per-share data) Three Months Ended Six Months Ended 10/31/91 10/31/90 10/31/91 10/31/90 Net sales $279,026 $254,626 $543,710 $487,853 Costs and expenses: Cost of products sold 93,310 86,400 175,657 163,854 Research and development expense 25,942 21,667 50,537 42,610 Selling, general, and administrative expense 101,375 97,073 204,269 186,149 Interest expense 3,186 3,649 5,845 6,721 Interest income (2,728) (2,375) (4,883) (4,636) Merger and acquisition costs(a) -- 5,532 -- 6,021 Total costs and expenses 221,085 211,946 431,425 400,719 Earnings before income taxes 57,941 42,680 112,285 87,134 Provision for income taxes 19,410 13,997 37,615 28,171 Net earnings $38,531 $28,683 $74,670 $58,963 Weighted average shares outstanding 59,579 59,168 59,556 59,096 Earnings per share(a) $.65 $.48 $1.25 $1.00 (a) The second quarter and year-to-date fiscal year 1991 results included $5,532 and $6,021, respectively, of merger and acquisition costs pertaining to the merger with Bio-Medicus. Removing these nonoperational costs results in earnings per share for the second quarter and year-to-date fiscal year 1991 of $.56 and $1.08, respectively. -0- 11/21/91 /CONTACT: (investors) Dale Beumer, 612-574-3038 or (media) Dick Reid, 612-574-3052, both of Medtronic/ (MDT) CO: Medtronic, Inc. ST: Minnesota IN: MTC SU: ERN DS-JS -- MN005 -- 5758 11/21/91 09:37 EST
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|Date:||Nov 21, 1991|
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