As promised, it’s that time of year when financials are yet again foist upon us. Today it’s the turn of St. Jude Medical, Inc. who’s sales and net earnings for the third quarter ended September 29, 2012 spoke of another tough quarter.
The Company reported net sales of $1.326 billion in the third quarter of 2012, a decrease of 4 percent compared with the $1.383 billion in the third quarter of 2011, albeit foreign currency translation comparisons decreased third quarter sales by approximately $60 million.
Revenue by division
Looking at the picture by division, Cardiac Rhythm Management (CRM) sales were $691 million for the third quarter of 2012, an 8 percent decrease compared with the third quarter of 2011 (4% decrease after foreign currency adjustment.
Continuing the downward trend, ICD product sales were $412 million in the third quarter, a 7 percent decrease compared with the third quarter of 2011(4 percent decline on constant currency basis).
It was even worse for pacemaker sales of $279 million, a 9 percent decrease compared to the third quarter of 2011 (4% after currency).
Atrial Fibrillation (AF) product sales for the third quarter totalled $220 million, a 9 percent increase (13% on constant currency basis).
Total Cardiovascular division sales, which primarily include vascular and structural heart products, were $314 million for the third quarter of 2012, a 4 percent decrease from the third quarter of 2011 (1% adjusted).
Structural heart product sales for the third quarter of 2012 were $145 million, a 4 percent decrease from the third quarter of 2011.
Sales of vascular products during the third quarter of 2012 were $169 million, down 5 percent from the comparable quarter of 2011.
Neuromodulation product revenues were 1% down at $101 million in the third quarter of 2012, and actually increased 2 percent after adjusting for the impact of foreign currency.
Earnings hit by reorg charges
In common with a number of other companies, St.Jude has been reorganising itself, which doesn’t come without costs. In the third quarter of 2012 the Company recorded after-tax charges of $80 million, or $0.25 per share primarily related to the realignment actions announced this quarter as well as previously announced actions initiated during the second quarter of 2011 to realign certain activities within its CRM business.
Including these items, reported net earnings for the third quarter of 2012 were $176 million, or $0.56 per share. This compares to reported net earnings for the third quarter of 2011 of $227 million, or $0.69 per share.
St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “Our existing growth drivers continued to perform well this quarter and we made good progress with our emerging growth drivers that will launch in the coming year. As we move into 2013 we are focused on execution and on ensuring our organization is as efficient and streamlined as possible to achieve our goal of delivering innovative medical devices that improve patient outcomes and reduce the cost of health care.”
Source: St.Jude Medical Inc., Business Wire