Sluggish CRM sales continue to affect St. Judes bottom line

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St. Jude Medical has reported slight increases in net earnings for the fourth quarter and year ending Dec. 31, 2011, despite a dip in cardiac rhythm management (CRM) sales. However, double-digit sale increases for both the fourth quarter and fiscal year for the atrial fibrillation and cardiovascular units bolstered the company.

The St. Paul, Minn.-based company reported net sales of $1.41 billion in the fourth quarter of 2011, an increase of 4 percent over the $1.35 billion in the fourth quarter of 2010. Foreign currency translation comparisons increased fourth quarter sales by approximately $18 million.

Net sales in 2011 were $5.61 billion compared with $5.16 billion in 2010, an increase of 9 percent. Foreign currency translation comparisons increased sales in 2011 by about $183 million.

Total CRM sales, which include implantable cardioverter-defibrillator (ICD) and pacemaker devices, were $728 million for the fourth quarter of 2011, a 4 percent decrease compared to the fourth quarter of 2010, according to St. Jude. Total CRM product sales for the full year of 2011 were $3.03 billion, essentially equal to 2010 sales.

Of that total, ICD product sales were $436 million in the fourth quarter, a 5 percent decrease compared to the fourth quarter of 2010. ICD product sales for the full year of 2011 were $1.82 billion, flat when compared to 2010. St. Jude also reported that its fourth quarter pacemaker sales were $292 million, a 4 percent decrease compared to the fourth quarter of 2010. Total pacemaker sales for 2011 were $1.21 billion, approximately equal to pacemaker sales in 2010.

Atrial fibrillation (AF) product sales for the fourth quarter totaled $218 million, a 13 percent increase over the fourth quarter of 2010. For the full fiscal year of 2011, AF product sales were $822 million, an increase of 16 percent over the prior year.

Total cardiovascular sales, which primarily include vascular and structural heart products, were $340 million for the fourth quarter of 2011, an 18 percent increase over the fourth quarter of 2010. Total cardiovascular product sales for 2011 were $1.34 billion, up 29 percent over 2010.

Sales of vascular products in the fourth quarter of 2011 were $190 million, an 8 percent increase from the fourth quarter of 2010. Total vascular product sales for 2011 were $740 million, up 10 percent from 2010.

Total structural heart product sales for the fourth quarter of 2011 were $150 million, up 35 percent compared with the fourth quarter of 2010. Total structural heart product sales for 2011 were $597 million, up 64 percent compared to 2010.