Location: Minneapolis, MN
CEO: Bill Hawkins
Sales: $15.82B (FY 2010)
During Q1 for FY 2011, the company reported worldwide revenue of $3.77 billion, compared with the $3.93 billion reported during the same period last year, a decrease of 4 percent as reported--or an increase of 2 percent after adjusting for a $21 million unfavorable foreign currency impact and approximately $200 million of revenue benefit for the extra week in the first quarter of fiscal year 2010.
Medtronic had anticipated earnings per share between $3.45 and $3.55 and revenue growth between 5 percent and 8 percent. But a dip in first quarter revenues, unfavorable foreign currency impact and overall slow sales has caused the company to adjust that projection. Now Medtronic expects EPS of $3.40 and $3.48, with revenue growing between 2 percent and 5 percent, according to Seeking Alpha.
"A softer global healthcare market impacted by decreased utilization and increased pricing pressure made for a difficult first quarter," says Bill Hawkins, Medtronic chairman and CEO. "Solid performance from the CardioVascular, Diabetes and Surgical Technologies businesses was offset by softness in other businesses. Despite a difficult quarter, the fundamentals of our business remain strong and we are confident that our diversified portfolio positions us well to deliver market-leading performance in the long run."
At the time, Medtronic said it expects to preserve and expand its share in markets ranging from pacemakers and defibrillators to stents and spinal devices, according to Reuters. And last month, Hawkins said Medtronic is focusing on acquisitions to fill in gaps in its business and will be "opportunistic" in seeking acquisitions of up to $1 billion to restore sales growth.