St. Jude posts Q3 losses

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St. Jude Medical has reported a decrease in sales and net earnings for the 2012 fiscal third quarter, which ended Sept. 29.

The St. Paul, Minn.-based company reported net sales of $1.33 billion in the third quarter of 2012, a decrease of 4 percent compared with $1.38 billion in the third quarter of 2011. Foreign currency translation comparisons decreased third quarter sales by approximately $60 million.

The reported net earnings for the third quarter of 2012 were $176 million, compared with reported net earnings for the third quarter of 2011 of $227 million.

The total cardiac rhythm management (CRM) sales, which include implantable cardioverter-defibrillator (ICD) and pacemaker products, were $691 million for the third quarter of 2012, an 8 percent decrease compared with the third quarter of 2011. Of that total, ICD product sales were $412 million in the third quarter, a 7 percent decrease compared with the third quarter of 2011. Third quarter pacemaker sales were $279 million, a 9 percent decrease compared with the third quarter of 2011.   

Atrial fibrillation product sales for the third quarter totaled $220 million, a 9 percent increase over the third quarter of 2011.

Total cardiovascular sales, which primarily include vascular and structural heart products, were $314 million for the third quarter of 2012, a 4 percent decrease from the third quarter of 2011. Structural heart product sales for the third quarter of 2012 were $145 million, a 4 percent decrease from the third quarter of 2011. Sales of vascular products during the third quarter of 2012 were $169 million, down 5 percent from the comparable quarter of 2011.

St. Jude said its sales of neuromodulation products were $101 million in the third quarter of 2012, down 1 percent from the comparable quarter of 2011. 

In the 2012 third quarter, the company recorded after-tax charges of $80 million, primarily related to organizational realignment actions announced this quarter as well as previously announced actions initiated during the second quarter of 2011 to realign certain activities within its CRM business.