Medtronic Revenue Boosted by Covidien Acquisition
September 03 2015 - 9:10AM
Dow Jones News
Medtronic PLC reported on Thursday that revenue rose 12% in its
latest quarter, helped by its recent acquisition of Covidien
PLC.
Thursday's report marks the second round of results since the
device manufacturer's $50 billion acquisition of Covidien closed in
January. The Covidien deal, which combined two of the world's
largest surgical-implant and hospital-supply companies, closed in
late January after drawing scrutiny over a tax-lowering tactic
criticized by U.S. government officials. The acquisition involved
Medtronic reincorporating from Minneapolis to Dublin, a so-called
inversion deal that lowers the company's tax burden.
Overall, Medtronic reported a profit of $820 million, or 57
cents a share, down from $871, or 87 cents, a year earlier.
Excluding special items and adjusting for the deal, earnings were
$1.02 a share.
On a comparable, constant currency basis—which includes Covidien
in the year-earlier results—revenue grew 12% to $7.27 billion.
Analysts had expected earnings of $1.01 a share on revenue of
$7.06 billion.
In the latest quarter, the minimally invasive therapies group,
formerly the Covidien Group, had sales of $2.46 billion, up
11%.
U.S. revenue, which represents 57% of company revenue, grew
14%.
In the latest quarter, revenue from Medtronic's cardio and
vascular group segment was $2.57 billion, an increase of 15% on a
comparable basis. Revenue from the restorative therapies group rose
10% on a comparable basis to $1.81 billion. Sales in the diabetes
group grew 15% on a comparable basis to $445 million.
The company affirmed its full-year outlook.
Shares, inactive premarket, have been about flat this year.
Write to Angela Chen at angela.chen@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 03, 2015 08:55 ET (12:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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