Strong imaging sales contribute to Covidien Q3 profits

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Covidien reported that robust sales in its imaging solutions unit have contributed to positive results for its fiscal 2008 third quarter, which closed on June 30.

The company said its third-quarter net sales rose 14 percent to $2.6 billion from $2.3 billion a year ago, fueled by strong growth in the medical devices, imaging solutions and pharmaceutical products business segments. Sales growth was driven by higher volume and new products and favorable foreign exchange contributed 5 percentage points to the sales increase, according to Covidien. 

In particular, the company said its imaging solutions sales rose 18 percent to $319 million, compared with $271 million in the prior year's third quarter.

Selling, general and administrative expenses were significantly higher than in the third quarter of 2007, according to Covidien. The company said its increase was attributable to planned growth in selling and marketing investments, foreign exchange and higher administrative costs. Research and development expense in the second quarter of 2008 was up 33 percent over the prior year and represented 3.3 percent of sales.