News Column

St. Jude Reports 4Q and Full-year Drop in Net Sales

Jan. 23, 2013

James Walsh

St. Jude Medical on Wednesday reported fourth quarter 2012 net sales of $1.372 billion, a 2 percent decline when compared to the fourth quarter of 2011. Full year 2012 net sales of $5.503 billion also showed a 2 percent decline from 2011.

Earnings per share were 39 cents for the fourth quarter, the same as for the fourth quarter of 2011. For the full year, 2012 earnings were $752 million, or $2.39 per share.

While St. Jude's sales of cardiac rhythm management technology of $682 million was down 6 percent compared to the fourth quarter of 2011, St. Jude officials said in a call Wednesday that they were able to maintain their global market share for implantable defibrillators.

A growing segment of St. Jude's business continues to be atrial fibrillation -- a procedure in which doctors correct heart rhythm by using radio waves to burn a spot on the heart. St. Jude's atrial fibrillation sales for the fourth quarter were $239 million, a 10 percent increase over the fourth quarter of 2011. In addition, St. Jude officials said Wednesday that the company's atrial fibrillation business could surpass its pacemaker business as early as 2014. Pacemaker sales for the fourth quarter of 2012 were $260 million, down 11 percent compared to fourth quarter 2011.

Neuromodulation sales were $113 million in the fourth quarter, St. Jude reported, a 7 percent decline from the same quarter a year ago. Neuromodulation sales for the full year -- $423 million -- were up 1 percent compared to 2011.

Daniel J. Starks, St. Jude Medical chairman, president and chief executive officer, said: "We are particularly pleased with the strong growth of our atrial fibrillation business, our ability to maintain share in the global [implantable defibrillator] market and exceeding prior earnings per share guidance for the quarter. We remain firmly committed to delivering strong EPS growth in 2013 without sacrificing investment in our broad portfolio of pipeline products."

The Little Canada-based company said it expects net earnings for the first quarter of 2013 to be in the range of $0.91 to $0.93 per share and for full-year 2013 net earnings to be in the range of $3.68 to $3.73.

Full-year sales for 2013 are expected to be in the range of $5.4 billion to $5.6 billion.


Distributed by MCT Information Services

Source: (c) 2013 the Star Tribune (Minneapolis)

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