St. Jude Medical has reported positive sales and net earnings for the 2011 third quarter, which ended Oct. 1, compared with the same time period in 2010.
The net earnings were $226.47 million in this past fiscal quarter, according to the company, compared with $208.39 million in the 2010 third quarter.
The St. Paul, Minn.-based company reported net sales of $1.38 billion in the 2011 third quarter—an increase of 12 percent—compared with the $1.24 billion in the third quarter of 2010. The gross profit, after deducting the cost of sales, was $1.01 billion in the 2011 third quarter, compared with $900.01 million in the year-over-year quarter.
The total cardiac rhythm management (CRM) sales, which include implantable cardioverter-defibrillator (ICD) and pacemaker products, were $751 million for the third quarter of 2011, a 2 percent increase compared with last year’s third quarter, according to St. Jude. Of that total, ICD product sales were $445 million in the third quarter, a 1 percent increase compared with the third quarter of 2010. Third quarter pacemaker sales were $306 million, up 2 percent from the comparable quarter in 2010.
Atrial fibrillation product sales for the third quarter of 2011 totaled $202 million, a 20 percent increase over the third quarter of 2010.
Total cardiovascular sales, which primarily include vascular and structural heart products, were $328 million for the third quarter of 2011, a 37 percent increase over the third quarter of 2010 on a reported basis. This division now includes sales from AGA Medical, which St. Jude acquired in November 2010. Sales of vascular products in the third quarter of 2011 were $177 million, up 10 percent from the comparable quarter in 2010. Structural heart product sales for the third quarter of 2011 were $151 million, a 91 percent increase over the third quarter of 2010, with the addition of AGA products to the business.
In the 2011 third quarter, the company recorded after-tax charges of $21 million, related primarily to ongoing restructuring actions that began in the second quarter to realign certain activities in its CRM business as well as employee termination and other costs primarily associated with continuing efforts to improve its international sales and sales support organization. Also during the third quarter, the company recorded after-tax charges of $9 million, related to increased collection risk for accounts receivable related to one customer in Europe.