Medtronic sees double-digit gains in FY12, Q4

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Medtronic has posted strong financial results for its 2012 fourth quarter and 2012 fiscal year, which ended April 27.

The Minneapolis-based company reported worldwide fourth quarter revenue of $4.3 billion, compared with $4.17 billion reported in the fourth quarter of fiscal year 2011, an increase of 3 percent. The 2012 fourth quarter net earnings were $991 million, compared with net earnings of $776 million in the same period in the prior year. 

The company reported fiscal year 2012 revenue of $16.18 billion, an increase of 4 percent. The fiscal year 2012 net earnings were $3.62 billion, an increase of 17 percent over 2011 fiscal year results. 

Fiscal year 2012 international revenue of $7.36 billion grew 11 percent. Fourth quarter international revenue of $2 billion increased 5 percent. International sales accounted for 46 percent of Medtronic’s worldwide revenue in the quarter. Emerging market revenue of $463 million increased 19 percent, and now represents 11 percent of company revenue.

The cardiac and vascular group at Medtronic includes the cardiac rhythm disease management (CRDM) and cardiovascular businesses. The group had worldwide sales in the quarter of $2.25 billion, representing an increase of 3 percent. The cardiac and vascular group international sales of $1.29 billion increased 3 percent. Medtronic said that the group revenue performance was driven by coronary, transcatheter valves, endovascular, atrial fibrillation (AF) solutions, renal denervation and peripheral, partially offset by small declines in pacing and implantable cardioverter-defibrillators (ICDs).

CRDM revenue of $1.3 billion was down 2 percent as reported. Fourth quarter revenue from ICDs was $744 million, down 1 percent on a constant currency basis, while pacing revenue was $492 million, a decrease of 2 percent on a constant currency basis. Continued growth of the AF Solutions business offset weaker ICD and pacing sales.

Cardiovascular revenue of $958 million grew 9 percent. The coronary business grew worldwide revenue 12 percent on a constant currency basis and U.S. revenue 24 percent on the launch of the Resolute Integrity drug-eluting stent. The structural heart and endovascular and peripheral businesses grew worldwide revenue 7 percent, according to the company.

The Restorative Therapies Group at Medtronic includes the spine, neuromodulation, diabetes and surgical technologies units. This group had worldwide sales in the quarter of $2.04 billion, representing an increase of 4 percent as reported. Group revenue was driven by performances in surgical technologies, neuromodulation and diabetes, partially offset by declines in U.S. Spine. Restorative Therapies Group international sales of $710 million increased 9 percent as reported.

Diabetes revenue of $392 million grew 7 percent. Growth in the quarter was driven by sales of continuous glucose monitoring (CGM) products and consumables. Specifically, the Enlite CGM sensor had growth in Europe, according to Medtronic.

Surgical Technologies revenue of $371 million grew 25 percent on a constant currency basis or 24 percent as reported. Organic revenue growth accelerated to 14 percent, after adjusting for $34 million of revenue from the advanced energy business, consisting of the company’s Salient Surgical Technologies and Peak Surgical acquisitions.