Medtronic, Inc. today announced financial results for its fourth quarter and fiscal year 2014, which ended April 25, 2014.
The company reported worldwide fourth quarter revenue of $4.566 billion, compared to the $4.459 billion reported in the fourth quarter of fiscal year 2013, an increase of 3 percent on a constant currency basis after adjusting for a $39 million negative foreign currency impact or 2 percent as reported. Including a one-time, non-cash $746 million pre-tax certain litigation charge, primarily related to the company's global patent agreement reached with Edwards Lifesciences Corporation, as well as the company's INFUSE product liability settlement, fourth quarter net earnings as reported were $448 million, or $0.44 per diluted share, both decreasing 54 percent over the same period in the prior year. After adjusting for this charge and other items detailed in the attached table, fourth quarter net earnings and diluted earnings per share on a non-GAAP basis were $1.135 billion and $1.12, an increase of 1 percent and 2 percent, respectively, over the same period in the prior year.
The company reported fiscal year 2014 revenue of $17.005 billion, an increase of 4 percent on a constant currency basis after adjusting for a $175 million negative foreign currency impact or 3 percent as reported. As reported, fiscal year 2014 net earnings were $3.065 billion or $3.02 per diluted share, a decrease of 12 percent and 10 percent, respectively. As detailed in the attached table, fiscal year 2014 non-GAAP net earnings and diluted earnings per share were $3.868 billion and $3.82, flat and an increase of 2 percent, respectively.
Fourth quarter international revenue of $2.145 billion increased 5 percent on a constant currency basis or 3 percent as reported. International sales accounted for 47 percent of Medtronic's worldwide revenue in the quarter. Emerging market revenue of $571 million increased 14 percent on a constant currency basis or 10 percent as reported and represents 13 percent of company revenue.
"In our fourth quarter, our overall organization once again delivered balanced growth, with strong performances in some areas more than offsetting challenges in other parts of our business," said Omar Ishrak, Medtronic chairman and chief executive officer. "We remain focused on delivering consistent and dependable growth across all of our businesses through our three growth vectors: new therapies, emerging markets, and independent services and solutions."
The Cardiac and Vascular Group includes the Cardiac Rhythm Disease Management (CRDM), Coronary, Structural Heart, and Endovascular businesses. The Group had worldwide sales in the quarter of $2.369 billion, representing an increase of 2 percent on a constant currency basis or 1 percent as reported.