Medtronic sees 3% increase in FY09 earnings; large dip for Q4

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Medtronic has reported an increase in financial income for its 2009 fiscal year and a large dip in income for the 2009 fourth quarter, which ended April 24.

The Minneapolis-based company recorded fiscal year 2009 net earnings of $2.29 billion, a 3 percent increase over the $2.23 billion in net earnings in the previous year. Its fiscal year 2009 revenue of $14.6 billion represented an 8 percent increase over the $13.52 billion in fiscal year 2008, and company said that the "currency translation had a negative impact on revenue of $100 million for the fiscal year." Medtronic also reported that its 2009 fiscal year net income was adversely affected by the additional $79 million in restructuring charges and the additional $170 million in litigation charges, compared to the previous fiscal year.

The company said its fourth quarter net earnings were $250 million, compared to $812 million in the year-ago quarter. Also, its fourth quarter revenue decreased approximately 1 percent to $3.83 billion from the $3.86 billion reported a year ago. Medtronic said that the currency translation negatively impacted its fourth quarter by $211 million. Also, the company booked purchased in-process research and development charges of $530 million, compared $47 million in the fourth quarter of 2008; in addition to $270 million, compared to no charges in the 2008 fourth quarter.

For its cardiac rhythm disease management unit, the company said its annual revenue was $5.01 billion, an increase of 1 percent; and its fourth quarter revenue of $1.3 billion decreased 5 percent. Implantable cardioverter defibrillator (ICD) annual revenue of $2.96 billion increased 3 percent over fiscal year 2008. Worldwide annual pacing revenue of $1.98 billion decreased 1 percent compared to last year. Fourth quarter revenues for ICDs and pacing were $780 million and $494 million, respectively. Also, the acquisition of Ablation Frontiers was also completed in the quarter, which when combined with the recent CryoCath acquisition.

For its cardiovascular unit, Medtronic said its annual revenue of $2.44 billion increased 14 percent; and its fourth quarter revenue of $644 million was flat compared to a year ago. Coronary annual revenue of $1.29 billion increased 16 percent on a constant currency basis. Endovascular annual revenue of $398 million increased 42 percent on a constant currency basis, and its fourth quarter endovascular revenue of $117 million increased 67 percent on a constant currency basis, driven by the Talent Abdominal Aortic Aneurysm and Talent Thoracic aneurysm product lines. The acquisitions of CoreValve and Ventor also were completed in the quarter.

The Redmond, Wash.-based Physio-Control reported annual revenue of $343 million, an increase of 4 percent; and its fourth quarter revenue of $84 million decreased 17 percent.