Medtronic's fiscal 3rd-qtr profit nose-dive 89%

US medical device maker Medtronic's earnings in the three months to December 12, 2007, nose-dived 89% year-on-year to $77.0 million, or $0.07 per share, on charges from law suit settlements and technology write-downs.

Strong foreign sales in the fiscal third-quarter saw income jump 12% to $3.41 billion. Adjusting for $0.56 of special charges relating to the impairment of intangible assets, litigation charges and in-process R&D costs primarily related to its acquisition of Kyphon, the Minneapolis-based firm saw net earnings and diluted earnings per share of $713.0 million and $0.63 respectively, beating the $0.61 per share consensus projection from a poll of analysts conducted by Thomson Financial. On the day of the news, February 19, the firm's share price increased 3% to $49.15.

"Our quarterly performance reflected the double-digit growth in our Neuromodulation, Diabetes, Spinal and [ear nose and throat] businesses and the successful close of the Kyphon acquisition," said Bill Hawkins, Medtronic's chief executive. Revenue from the firm's portfolio of spinal devices grew 35%, driven by $147.0 million extra income from Kyphon.