MANSFIELD – Medical technology maker Covidien Plc. reported third quarter earnings of $453 million, or 93 cents per diluted share, a drop of 15.3 percent from the $535 million, or $1.07 per diluted share reported during the same period in 2011.
As earnings dropped, however, the company's sales grew 3 percent to $3.01 billion during the third quarter, compared to $2.93 billion reported during the third quarter of 2011.
“We delivered a solid performance in the third-quarter,” José E. Almeida, president and CEO, said in a prepared statement. “Top-line operational growth was in line with our expectations, and we generated improved gross and operating margins. That said, our results as reported were restrained by the strength of the U.S. dollar against most foreign currencies and by a slowdown in Europe, where economic conditions remain challenging.”
The company saw the largest growth in its medical devices segment, which grew 9 percent in the U.S. to $952 million from $874 million during the third quarter of 2011.
According to Almeida, the growth was led by energy and vascular products, which climbed at a double-digit pace during the three months ended June 29.
For the first nine months of fiscal year 2012, medical device sales rose 5 percent to $6.05 billion from $5.74 billion compared to the same period in fiscal year 2011. However, foreign exchange lowered the nine-month sales growth rate by two percentage points.
Sales in the company’s pharmaceuticals segment were virtually unchanged in the third quarter, rising to $501 million from $500 million during the third quarter 2011.
Similarly, third quarter sales of the company’s medical supplies segment rose slightly to $443 million from $441 million during the same period in 2011.