Medical Technology

Medtronic, Inc.

The Company

Medtronic <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MDT)") else Response.Write("(NYSE: MDT)") end if %> is the world's foremost manufacturer of implantable medical devices, and is an excellent example of a company that has employed aggressive acquisitions as a key to rounding out product lines. In addition, the company has one of the largest R&D budgets and employs it with the philosophy of making existing products obsolete (preferably competitor's products). The company makes products for improved cardiovascular health, including implantable defibrillators, such as its bradycardia device (which paces slow-beating hearts) and its tachyarrhythmia products (which correct rapid heartbeats). The company also makes mechanical and tissue heart valves, balloon guiding catheters and stents used in angioplasty, implantable neurostimulation and drug delivery systems, and perfusion systems, including blood oxygenators, centrifugal blood pumps, cannula products, and autotransfusion and blood monitoring systems.

Latest Financials

Medtronic, Inc. announced that its fiscal 1997 earnings rose 23.7% to $530 million, with leading contributions from its pacing and neurological businesses. Earnings per share were $2.22, an increase of 23.3% over EPS for fiscal 1996 of $1.80. Fiscal 1997 revenues were $2,438.2 million, an increase of 12.3% from the $2,172.1 million of last year. On a constant currency basis, revenues increased 15.2%.

For the fourth quarter, Medtronic reported net income of $145.5 million, or $0.62 a share, up 19.6% and 21.6%, respectively, from the same period a year ago. Revenues were $640.5 million, growing 7.3%, or 11.2% when the effects of foreign currency translation are excluded. In addition to the negative effects of foreign currency translation, reported revenue growth was impacted by the fact that the quarter included four fewer selling days than did the comparable period of fiscal 1996.

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