Medtronic sees 59% jump in earnings for Q2

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Medtronic has reported that its second quarter net earnings in the fiscal year 2010, which ended Oct. 30, more than double compared to the previous year-ago quarter.

The Minneapolis-based company said its second quarter net earnings were $868 million, increasing 59 percent over the same period in the prior year.

Medtronic posted second quarter revenue of $3.84 billion, an 8 percent increase compared to the $3.57 billion reported in the second quarter of fiscal year 2009. Revenue outside the U.S. of $1.54 billion grew 12 percent compared to the same period last year, accounting for 40 percent of Medtronic’s worldwide revenue.

The company’s cardiac rhythm disease management revenue of $1.28 billion grew 3 percent  and on a constant currency basis. Revenue from implantable cardioverter defibrillators increased to $754 million from $724 million in the previous year’s second quarter. However, pacing systems’ revenue dropped to $498 million in the 2010 second quarter, compared to last year’s second quarter.

Overall, cardiovascular revenue of $696 million grew 17 percent over the previous year’s second quarter. The cardiovascular business, which includes coronary, endovascular and structural heart disease divisions, grew 18 percent, 28 percent and 11 percent, respectively.

Diabetes revenue of $300 million grew 10 percent, according to the company, which said that growth was driven by U.S. insulin pump and continuous glucose monitoring product sales, as well as strong sales of consumables in Europe.

The revenue of Medtronic’s subsidiary Physio-Control grew 25 percent to $94 million compared to the 2009 second quarter, due to strong international sales and sales of the Lifepak 15 monitor/defibrillator.