Medtronic posts slight revenue, earnings gains in Q3

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Medtronic reported an increase in the company's third quarter revenue for fiscal year 2012 compared to the same quarter for the previous year, despite a dip in revenue in its cardiac rhythm disease management (CRDM) business.

Minneapolis-based Medtronic reported a 2 percent increase in third quarter revenue, rising from $3.86 billion for fiscal year 2011 to $3.92 billion in fiscal year 2012. 

Net earnings for the third quarter were $935 million, an increase of 1 percent over the same period in the prior year. 

The Cardiac and Vascular Group, which includes Medtronic's CRDM and cardiovascular businesses, reported worldwide third quarter sales of $2.03 billion, an increase of 2 percent as reported or 1 percent on a constant currency basis. Group international sales rose 5 percent to $1.15 billion.

Declines in implantable cardioverter-defibrillators (ICDs) contributed to a slip in third quarter revenue in CRDM. CRDM third quarter revenue totaled $1.19 billion, for a decrease of 2 percent as reported or 3 percent on a constant currency basis. Third quarter revenue from ICDs was $674 million, down 9 percent on a constant currency basis. Medtronic attributed the slump to declining procedure volumes in the U.S. market compared with the prior year.

Pacing revenue, on the other hand, rose to $467 million, while atrial fibrillation (AF) solutions posted revenues of $51 million, up from $36 million for the same quarter of the prior year.

Cardiovascular revenue was $837 million for the third quarter, up 8 percent. The coronary, structural heart, and endovascular and peripheral businesses worldwide revenue grew 3 percent, 10 percent, and 17 percent, respectively, on a constant currency basis. According to Medtronic, transcatheter valves drove growth in the structural heart business while the Endurant stent graft fueled growth in the endovascular and peripheral businesses.