By Angela Chen
Medtronic Inc. said its revenue for the October quarter grew 5%
on strength across its segments, while the medical-devices maker
backed its commitment to buy Covidien PLC.
The merger remains on schedule to close in early 2015, Chief
Executive Omar Ishrak said. The companies plan to hold a special
meeting in January to seek shareholder approval of the merger.
Medtronic's plan to buy Irish health-care-products company
Covidien PLC has drawn scrutiny over a tax tactic criticized by
U.S. government officials. The acquisition plan involves Medtronic
Inc. reincorporating in Ireland, where Covidien is based, and
becoming Medtronic PLC. The tactic of reincorporating in another
country, called a tax inversion strategy, would lighten the
company's U.S. tax burden.
In all, Medtronic reported earnings for the second quarter ended
Oct. 24 of $828 million, or 83 cents a share, down from $902
million, or 89 cents a share, a year ago. Excluding charges such as
a $100 million donation to the Medtronic Foundation, per-share
earnings were 96 cents, compared with 91 cents a year earlier.
Revenue rose 5% to $4.37 billion from $4.19 billion.
Analysts polled by Thomson Reuters had called for earnings of 96
cents a share and revenue of $4.37 billion.
Medtronic's cardiac and vascular group posted a 5% revenue
increase to $2.29 billion.
The restorative therapies group's revenue grew 4% to $1.65
billion, while the diabetes group's revenue increased 10% to $430
million.
The company backed its earnings guidance for the year.
Write to Angela Chen at angela.chen@dowjones.com
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