20 octobre 2021 Pierre Perrin-Monlouis
· International Revenue of $1.6 Billion Grew 6% on a Constant Currency Basis; 4% As Reported
· Emerging Market Revenue Grew 19% on Constant Currency Basis; 22% As Reported
· Non-GAAP Diluted EPS of $0.82 Grew 6%; GAAP Diluted EPS of $0.52 Declined 33%
MINNEAPOLIS – November 23, 2010 – Medtronic, Inc. (NYSE:MDT) today announced financial results for its second quarter of fiscal year 2011, which ended October 29, 2010.
The company reported worldwide second quarter revenue of $3.903 billion, compared to the $3.838 billion reported in the second quarter of fiscal year 2010, an increase of 2 percent as reported and on a constant currency basis.
As detailed in the attached table, second quarter net earnings and diluted earnings per share on a non-GAAP basis were $887 million and $0.82, an increase of 4 percent and 6 percent, respectively, over the same period in the prior year. As reported, second quarter net earnings were $566 million, or $0.52 per diluted share, a decrease of 35 percent and 33 percent, respectively, over the same period in the prior year.
International revenue of $1.608 billion increased 4 percent compared to the same period last year, or an increase of 6 percent after adjusting for a $29 million negative foreign currency impact. International sales accounted for 41 percent of Medtronic’s worldwide revenue.
“Overall, we saw relative market stability from July through October in a challenging market environment with more consistent performance in our businesses, resulting in sequential share gains in ICDs, pacemakers, spine, and drug-eluting stents,” said Bill Hawkins, Medtronic chairman and chief executive officer. “While macroeconomic challenges remain, we continue to advance our pipeline, drive growth in emerging markets and with our emerging therapies, and remain focused on leveraging our size and scale to reduce our cost structure. This positions us well for solid, market-leading performance in the long run.”
Cardiac and Vascular Group
The Cardiac and Vascular Group at Medtronic is comprised of Cardiac Rhythm Disease Management (CRDM), CardioVascular, and Physio-Control. The group reported worldwide sales in the quarter of $2.095 billion, which represents an increase of 1 percent as reported or 2 percent after adjusting for foreign currency. Cardiac & Vascular Group International sales of $1.084 billion were up 4 percent as reported or 5 percent after adjusting for foreign currency. Group performance was driven by strong CardioVascular and Physio-Control sales offset by slower sales in CRDM.
CRDM revenue of $1.248 billion declined 2 percent as reported or 1 percent after adjusting for foreign currency. Revenue from implantable cardioverter defibrillators (ICDs) of $745 million was down 1 percent compared to the same period in the prior year, but up 3 percent sequentially compared to the first quarter of fiscal year 2011. Pacing revenue was $472 million in the quarter, a decline of 5 percent. CRDM sales were negatively affected by slower market growth, but partially offset by continued growth of the AF Solutions business and the continued adoption of the Protecta™ ICD in Europe.
CardioVascular revenue of $738 million grew 6 percent as reported, or 7 percent after adjusting for foreign currency. Revenue growth was driven by strong international performance, particularly in Latin America, Greater China and Other Asia, leading to an increase in international sales of 10 percent as reported, or 12 percent after adjusting for foreign currency. The Coronary & Peripheral, Structural Heart, and Endovascular businesses grew worldwide revenue 3 percent, 17 percent, and 3 percent, respectively, after adjusting for foreign currency. Structural Heart revenue was driven by continued solid growth in transcatheter valves as well as revenue from the recent acquisition of ATS Medical, which closed in August.
Physio-Control revenue of $109 million increased 16 percent as reported, or 18 percent after adjusting for foreign currency. Solid U.S. growth of 31 percent was due in part to strong sales of the LIFEPAK™ 15 monitor/defibrillator and the resolution of a supplier constraint at the beginning of the quarter.
Restorative Therapies Group
The Restorative Therapies Group at Medtronic is comprised of Spinal, Neuromodulation, Diabetes, and Surgical Technologies. The group had worldwide sales in the quarter of $1.808 billion, which represents an increase of 2 percent as reported or 3 percent after adjusting for foreign currency. Restorative Therapies Group International sales of $524 million increased 6 percent as reported, or 8 percent after adjusting for foreign currency. Group revenue performance was led by strong growth in Diabetes and Surgical Technologies, offset by weaker sales in Spinal and Neuromodulation.
Spinal revenue of $850 million declined 1 percent both as reported and after adjusting for foreign currency, but was up 3 percent sequentially compared to the first quarter of fiscal year 2011. Sales in Core Spinal declined 1 percent. Biologics revenue decreased 2 percent. Slow but stable market growth, affected by continued utilization and pricing pressures, contributed to Spinal results.
Neuromodulation revenue of $388 million increased 1 percent as reported or 2 percent after adjusting for foreign currency. After adjusting for the fiscal year 2010 divestiture of the Bravo pH monitoring business, sales growth was 3 percent on a constant currency basis. Results were driven by new implant growth in pain stimulation therapies, Deep Brain Stimulation systems for movement disorders, and InterStim® Therapy for overactive bladder and urinary retention, and bowel control outside the United States.
Diabetes revenue of $326 million grew 9 percent as reported or 11 percent after adjusting for foreign currency. Growth in the quarter was driven by strong sales of continuous glucose monitoring products as well as solid performance in international markets, particularly in sales of insulin pumps.
Surgical Technologies revenue of $244 million grew 9 percent both as reported and on a constant currency basis. After adjusting for the fiscal year 2010 divestiture of the Ophthalmic business, sales growth was 11 percent on a constant currency basis. Sales performance in the U.S. was solid as capital spending in hospitals continued to improve, providing opportunities for technology upgrades driven by new product launches. International performance was strong in Japan, China and Latin America.
Revenue Outlook and Earnings per Share Guidance
The company today updated its revenue outlook and adjusted its diluted earnings per share guidance for fiscal year 2011.
For the second half of fiscal year 2011, based on estimated market growth of 2 to 3 percent, the company expects revenue growth in the range of 2 to 4 percent on a constant currency basis.
For fiscal year 2011, the company expects diluted earnings per share in the range of $3.38 to $3.44, which includes approximately $0.05 of dilution from the acquisition of Invatec and ATS Medical but does not take into account any impact from the pending acquisition of Ardian. Excluding the approximate $0.05 impact of acquisition dilution and the approximate $0.05 benefit of the extra week in fiscal year 2010, fiscal year 2011 diluted earnings per share growth is expected to be in the range of 8 percent to 10 percent.
Earnings per share guidance excludes any unusual charges or gains that might occur during the fiscal year and the impact of the non-cash charge to interest expense due to the accounting rules governing convertible debt. The guidance provided only reflects information available to the company at this time.
“With the overwhelming financial and societal impact of chronic disease, it is a critical time for Medtronic’s leadership in the management of major health problems like diabetes, heart disease, neurological disorders and musculoskeletal disorders,” said Hawkins. “We have the size, scale and financial strength to significantly and fundamentally change the future direction of chronic disease globally.”
Medtronic will host a webcast today, November 23, at 8 a.m. EST (7 a.m. CST), to provide information about its businesses for the public, analysts and news media. This quarterly webcast can be accessed by clicking on the Investors link on the Medtronic home page at www.medtronic.com
Medtronic, Inc., headquartered in Minneapolis, is the world’s leading medical technology company, alleviating pain, restoring health and extending life for people with chronic disease. Its Internet address is www.medtronic.com
This press release contains forward-looking statements related to expected product introductions and results of Medtronic’s future operations, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation and general economic conditions and other risks and uncertainties described in Medtronic’s periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements. Unless otherwise noted, all comparisons made in this news release are on an “as reported basis,” and not on a constant currency basis; references to quarterly figures increasing or decreasing are in comparison to the second quarter of fiscal year 2010.