Medtronic has reported impressive financial results for its 2010 fourth quarter and fiscal year, which ended April 30.
The Minneapolis-based company recorded 2010 fiscal year revenue of $15.82 billion, an 8 percent increase over its 2009 fiscal year revenue. As reported, 2010 fiscal year net earnings were $3.1 billion, an increase of 50 percent over the fiscal year 2009 net earnings.
For the first time in Medtronic’s 61-year history, the company said it delivered revenues exceeding $4 billion in a quarter. The medical device maker reported fourth quarter revenue of $4.2 billion, a 10 percent increase over reported fourth quarter revenue a year ago. The company also reported fourth quarter net earnings were $954 million, an increase of 826 percent.
The 2010 cardiovascular annual revenue of $2.86 billion increased 18 percent over the fiscal year of 2009, according to Medtronic. The 2010 fourth quarter revenue of $757 million increased 18 percent as reported. The coronary, structural heart and endovascular unit grew revenue 9 percent, 17 percent and 12 percent, respectively, compared with the 2009 fourth quarter. Strong international growth across the entire cardiovascular segment contributed to the 2010 fourth quarter performance, as the only areas that didn’t increase in the various cardiovascular segments were a $4 million drop in its U.S. structural heart unit and flat performance of $61 million in its U.S. endovascular unit over the 2009 fourth quarter.
Medtronic said that its cardiac rhythm disease (CRD) management unit had an annual revenue of $5.27 billion—an increase of 5 percent over the fiscal year of 2009. The overall 2010 revenue of the fourth quarter showed an 8 percent increase over the previous-year quarter, recording $1.41 billion. Furthermore, the company said its implantable cardioverter-defibrillator (ICD) revenue was $881 million compared with $780 million in the 2009 fourth quarter; and pacing systems revenue $495 million for the 2010 fourth quarter showed a slight increase—with only a $1 million increase.
According to Medtronic, the fourth quarter CRD growth was driven by ICD sales in the U.S. ($567 million vs. $505 million), due in part to a competitor’s suspension of sales, and the success of its atrial fibrillation technologies business outside the U.S.
Physio-Control said its annual revenue was $425 million, an increase of 24 percent, according to the company. Likewise, the fourth quarter revenue of $134 million, which increased 60 percent over the 2009 fourth quarter. Medtronic said its subsidiary growth was driven by “strong sales” of the Lifepak 15 monitor/defibrillator and the resumption of unrestricted global shipments early in the quarter following the lifting of the FDA distribution restrictions in February.
Finally, the company said its diabetes’ unit annual revenue increased 11 percent to $1.24 billion. Its fourth quarter revenue of $332 million increased 12 percent. Growth in the 2010 fourth quarter was driven by a strong international performance and growth in continuous glucose monitoring sales, according to Medtronic.