Medtronic 3Q Profit Higher, But Sales of Major Products Fall

By FOXBusiness

Medtronic (NYSE:MDT) reported slightly higher sales and profit in the third-quarter but continued to struggle with soft demand for its implantable heart defibrillators and spine products – two of its largest markets.

Revenue for the three months ended Jan. 27 was up 2% to $3.92 billion from $3.86 billion a year ago, narrowly missing the Street’s view of $3.98 billion.

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The results were pulled down by a 9% decrease in both heart defibrillators and spine products to $674 million and $784 million, respectively.

Medtronic CEO Omar Ishrak called the declines "not sustainable" and said the company needs to urgently see signs of improvement in its spine business.

Medtronic may need to assess its strategy and approach to the business, but as of now is not considering a sale, he said.

Shares of Medtronic were down about 2.3% to $39 on Tuesday.

The world’s largest medical device maker earned $935 million, or 89 cents, during the quarter, compared with a year-earlier $924 million, or 86 cents.

Excluding one-time items, the Minneapolis-based company earned 80 cents, below average estimates of 84 cents, according to analysts in a Thomson Reuters poll.

In fiscal 2012, the company expects earnings per share growth of 7% to 8%.