Printer Friendly

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
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 21, 1991
Words:662
Previous Article:ARMCO ENTERS NEW BANK AGREEMENT
Next Article:UGI'S AMERIGAS UNIT OFFERS $122.5 MILLION INVESTMENT IN BID TO RESTRUCTURE AND ACQUIRE PETROLANE GAS SERVICE
Topics:


Related Articles
MEDTRONIC EARNINGS INCREASE 21.1 PCT. ON STRONG MARKET SHARE TRENDS
MEDTRONIC POSTS FIRST-QUARTER EARNINGS INCREASE OF 26 PERCENT ON STRONG REVENUES FROM ALL SIX BUSINESSES
MEDTRONIC POSTS SOLID GAIN IN FIRST-QUARTER EARNINGS AS NEWER BUSINESSES CONTINUE GROWTH
BRADYCARDIA PACING, TACHYARRHYTHMIA DEVICE SALES HIGHLIGHT STRONG QUARTER FOR MEDTRONIC; EARNINGS UP 23.1 PCT.
MEDTRONIC CONTINUES ITS STRONG FINANCIAL PERFORMANCE WITH EARNINGS UP 19 PERCENT IN THIRD QUARTER
MEDTRONIC EARNINGS PER SHARE INCREASE 22 PCT. FOR FISCAL 1994 WITH SALES MOMENTUM ACCELERATING IN THE LAST HALF
MEDTRONIC EARNINGS PER SHARE RISE 24.2 PERCENT ON ACCELERATING WORLDWIDE SALES
MEDTRONIC EARNINGS PER SHARE RISE 24.2 PERCENT ON ACCELERATING WORLDWIDE SALES
MEDTRONIC EARNINGS INCREASE 53.3 PERCENT AS PACING BUSINESSES RECORD UNPRECEDENTED RESULTS
Medtronic Reports Quarterly Earnings Per Share of $0.31 On Strong Sales Growth in Neurological Devices and Implantable Defibrillators

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters