Medtronic ($MDT) Tuesday reported its second-quarter net earnings were $871 million, up 54% versus the same period last year.
The company also had worldwide revenue of $4.1 billion, compared with $3.9 billion during Q2 2011, an increase of 6%. Medtronic saw strength in emerging markets, where revenues were $414 million, up 21%, according to the earnings statement.
Medtronic's cardiac and vascular group saw sales of $2.2 billion, an increase of 5%. However, second quarter revenue from ICDs was $708 million, down 8% versus last year. The company cited declining procedure volumes for the lower sales.
Meanwhile, the company saw strong CardioVascular revenue ($830 million), up 12% over last year. Medtronic pointed to solid performances by the structural heart and endovascular businesses. Endovascular revenue got a boost from the U.S. launch of the Endurant stent graft for the treatment of abdominal aortic aneurysms, according to the company.
But the company did take a hit in its spinal and biologics business. Spinal revenue was down 1% to $839 million. Meanwhile, its biologics revenue was $208 million, down 4%, largely on declining sales of Infuse.
"I'm pleased we delivered another quarter of consistent growth in a difficult environment," said Omar Ishrak, Medtronic chairman and CEO. "A majority of our businesses, and nearly all of our geographies, contributed to this growth. As we continue to focus on innovation, globalization, and execution, I see tremendous opportunities for growth in the future."
When asked about further divestitures during a conference call, Ishrak said the company is constantly looking at its portfolio but believes it has a pretty good one right now. Last week, the company and Bain Capital announced their agreement through which the latter would acquire Medtronic's Physio-Control unit in a transaction valued at approximately $487 million.
Also, when asked how the company intends to boost future growth, Ishrak assured listeners that it was completely possible. He said the investments Medtronic makes today must result in future growth, and the company intends to better execute this tactic. Ishrak also pointed to customer economics. Even in these tough economic times, if Medtronic can show patients how they'll be better off financially using its products--and receive better care--the company can experience growth. Finally, China and India provide Medtronic with fantastic opportunities. Ishrak said there is a $7 billion device market in China, and with relentless focus, Medtronic intends to grow there and in other developing countries, including India.
- see the Medtronic release