Medtronic earnings drop due to litigation charges
Nov 20, 2012 (Star Tribune (Menafn - Minneapolis) - McClatchy-Tribune Information Services via COMTEX) --Medtronic on Tuesday reported that fiscal second quarter earnings fell 26 percent -- to 63 cents per share -- to 646 million due to one-time, litigaton-related charges and the impact of foreign currency. After adjusting for those charges and other items, the Fridley-based medical technology giant said earnings per share were 88 cents -- up 5 percent.
Reported second quarter revenues were 4.1 billion, up 2 percent over the previous year. After adjusting for currency differences, total revenue was up 5 percent, the company reported.
Second quarter international revenue of 1.806 billion increased 1 percent, or 8 percent after adjusting for currency differences. Medtronic's international sales accounted for 44 percent of the company's total revenue in the quarter.
Emerging market revenue of 464 million increased 14 percent and made up 11 percent of Medtronic's total revenue.
"Our second quarter performance reflects the results of our ongoing focus to deliver consistent and dependable growth in a changing health care environment," said Omar Ishrak, Medtronic chairman and chief executive officer. "Our growth was broad-based across several businesses and geographies, driven by continued stabilization of our end markets and the ongoing successful execution of new product launches."
The litigation charges stem from a 74 million jury verdict won by Edwards Lifesciences Corp. and affirmed last week by the U.S. Court of Appeals. The appeals court said that Medtronic infringed a valid Edwards patent in the making of its CoreValve transcatheter aortic valve. Medtronic said it disagrees with the ruling and it is not expected to affect clinical studies regarding the device in the United States.
Medtronic estimated non-cash litigation charges of 245 million.
James Walsh --612-673-7428
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