Covidien posts 6.7% profit in Q1

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Medical device and drug manufacturer Covidien reported a 6.7 percent increase in profits in the first quarter of 2010, which ended December 25, 2009.

The company reported net income of $412 million for the 2010 first quarter, up from the $386 million posted in the same quarter a year ago. Sales rose to $2.75 billion, up 7.2 percent from the $2.56 billion reported a year ago.

The company’s medical devices sales segment rose by 18 percent to $1.7 billion, compared to $1.4 billion in the previous-year quarter last year. Pharmaceutical sales dropped by 12 percent to $616 million, compared to $697 million in the prior year, while medical supplies sales of $443 billion were 2 percent higher than the $435 million reported a year ago.

“Our excellent performance in the first quarter of fiscal 2010 reflected the success of ongoing strategic initiatives focused on innovation and growth,” said Richard J. Meelia, chairman, president and CEO of Covidien. “Building on last year’s strong operational sales gains, we delivered exceptional growth in our largest business segment, medical devices, which generated broad-based improvement across its product lines.