Medtronic Reports Increased Earnings and Revenues
Net earnings (excluding the $14.7 million one-time pre-tax transaction charges related to the Xomed merger) were $275.3 million, also up 28% compared with pre-charge net earnings of $215.9 million, or $0.18 a share, in 1999. Revenues of $1.25 billion were 20% above the $1.0 billion recorded in last year's comparable quarter.
Financial results have been restated to reflect pooling-of-interests mergers and exclude one-time charges related to the mergers of Xomed in November 1999, as well as the mergers of Arterial Vascular Engineering and Sofamor Danek Group in the comparable quarter a year ago.
Company officials credited four key factors in Medtronic's major businesses that contributed to this quarter's performance and balanced growth: (1) accelerating sales momentum in the Vascular business from the S670 coronary stent system and the AneuRx endovascular graft for treatment of abdominal aortic aneurysms; (2) continued physician preference for Medtronic's market-leading technology in its implantable and external defibrillators; (3) double-digit growth rates in its pacemaker lines; and (4) strong growth from the broadened Neurological, Spinal and ENT product portfolio.
"This quarter's strong performance across all businesses demonstrates that Medtronic is better positioned today than ever before," said William W. George, chairman and CEO. "Medtronic's superior product technologies are winning in the marketplace, evidenced by market share gains in all of our major businesses. Integration of our mergers has gone well and is paying dividends in the form of accelerating growth rates, rising profitability and expanded platforms for continued growth in each of our markets."
George said the recently announced partnerships to develop Internet-based patient management systems with Microsoft, IBM and Healtheon/WebMD uniquely position Medtronic for continued growth now and in the future. "With exciting opportunities related to the convergence of information technology and medical technology, the company will continue its growth momentum and leadership by providing lifelong solutions for people with chronic disease," he said.