Medtronic Revenue Boosted by Covidien Acquisition

Medtronic PLC reported on Thursday that revenue rose 12% in its latest quarter, helped by its recent acquisition of Covidien PLC.

Thursday's report marks the second round of results since the device manufacturer's $50 billion acquisition of Covidien closed in January. The Covidien deal, which combined two of the world's largest surgical-implant and hospital-supply companies, closed in late January after drawing scrutiny over a tax-lowering tactic criticized by U.S. government officials. The acquisition involved Medtronic reincorporating from Minneapolis to Dublin, a so-called inversion deal that lowers the company's tax burden.

Overall, Medtronic reported a profit of $820 million, or 57 cents a share, down from $871, or 87 cents, a year earlier. Excluding special items and adjusting for the deal, earnings were $1.02 a share.

On a comparable, constant currency basis—which includes Covidien in the year-earlier results—revenue grew 12% to $7.27 billion.

Analysts had expected earnings of $1.01 a share on revenue of $7.06 billion.

In the latest quarter, the minimally invasive therapies group, formerly the Covidien Group, had sales of $2.46 billion, up 11%.

U.S. revenue, which represents 57% of company revenue, grew 14%.

In the latest quarter, revenue from Medtronic's cardio and vascular group segment was $2.57 billion, an increase of 15% on a comparable basis. Revenue from the restorative therapies group rose 10% on a comparable basis to $1.81 billion. Sales in the diabetes group grew 15% on a comparable basis to $445 million.

The company affirmed its full-year outlook.

Shares, inactive premarket, have been about flat this year.

Write to Angela Chen at [e-mail]

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(END) Dow Jones Newswires

September 03, 2015 08:55 ET (12:55 GMT)

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