Medtronic earnings slip 26 percent in 2Q on litigation costs

Publish date:

Medtronic Inc. posted a net income of $646 million in its fiscal second-quarter that ended Oct. 26, down from $871 million a year earlier, Bloomberg reports.

The Fridley-based medical technology firm was weighed down by $245 million in litigation charges related to a patent dispute with rival California-based Edwards Lifesciences Corp., the Business Journal reports.

The patent infringement case focused on Medtronic's heart valve product called CoreValve, according to the Pioneer Press. A federal jury ruled against Medtronic in 2010 and the U.S. Court of Appeals affirmed the $74 million verdict last week.

"Our second quarter performance reflects the results of our ongoing focus to deliver consistent and dependable growth in a changing health care environment," said Omar Ishrak, Medtronic chairman and chief executive officer, in a news release. "Our growth was broad-based across several businesses and geographies, driven by continued stabilization of our end markets and the ongoing successful execution of new product launches."

Click here, to follow Medtronic's stock performance.

Next Up


Fastenal 2Q earnings jump nearly 19 percent, revenue misses

The Winona-based operator of industrial hardware supply stores reported its net income rose to $112.3 million with help from new store openings and the installation of new industrial vending machines. However, second quarter sales failed to meet Wall Street expectations.

Select Comfort 2Q earnings surge 50 percent

Select Comfort Corp.'s shares soared 19 percent in after-hours trading Wednesday after the company reported it beat Wall Street expectations with strong gains in both sales and profits. The Plymouth-based maker of the Sleep Number bed also announced plans to open more stores than originally expected.

Imation to cut 20 percent of its workforce after double-digit declines in 3Q

Imation Corp. says it will layoff about one-fifth of its workforce or roughly 200 workers worldwide by next year after poor third-quarter numbers, including a nearly 20 percent drop in revenue compared to the previous year, the Star Tribune reports. There is no word on how many employees in the Twin Cites will be affected. The Oakdale-based maker of optical discs, magnetic tape and flash drives wants to reduce operating expenses by about 25 percent.