St. Jude reports 15% decline in Q2 earnings

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St. Jude Medical has reported a 15 percent net decline in earnings for the second quarter, which ended July 4, compared with the year-ago quarter.

The St. Paul, Minn.-based company reported net sales of $1.18 billion in the 2009 second quarter, an increase of 4 percent compared with the $1.14 billion in the second quarter of 2008, and noted its foreign currency translation comparisons decreased second quarter sales by approximately $69 million.

Its net earnings for the second quarter of 2009 were $219 million, compared with earnings for the second quarter of 2008 of $193 million, a 15 percent increase over the prior year, according to St. Jude.

For its cardiac rhythm management (CRM) unit, the company said its total sales, which include implantable cardioverter defibrillator (ICD) and pacemaker products, were $704 million for the second quarter of 2009, a 1 percent decrease compared with the 2008 second quarter. Of that total, ICD product sales were $400 million in the second quarter, a 1 percent decrease compared with the second quarter of 2008. Second quarter pacemaker sales were $304 million, a decrease of 1 percent from the comparable quarter of 2008.

The company said its atrial fibrillation product sales for the second quarter totaled $156 million, a 16 percent increase over the second quarter of 2008.

Total cardiovascular sales, which primarily include vascular closure and heart valve products, were $243 million for the 2009 second quarter, a 7 percent increase over the second quarter of 2008, St. Jude said. The product category includes sales of products that St. Jude acquired from Radi Medical Systems in December 2008. Specifically, sales of vascular closure products in the second quarter of 2009 were $99 million, a 2 percent increase over the year-ago period. Heart valve product sales for the period were $84 million, a 3 percent decrease compared with the second quarter of 2008.

The company also said that its board of directors has authorized the repurchase of up to $500 million of its common stock. St. Jude intends to repurchase the shares in the second half of 2009 through the open market, in privately negotiated transactions, or otherwise.