Business

Medtronic profit falls 44% as Covid hits elective surgeries

Company, which has a plant in Galway, said sales of ventilators more than doubled

The Medtronic office on 20 Lower Hatch Street in Dublin. Photograph: Alan Betson / The Irish Times

Tue Aug 25 2020 - 12:55

Dublin-headquartered Medtronic said on Tuesday demand for medical devices was improving as elective surgeries picked up pace following the easing of Covid-19 restrictions, while posting a 44 per cent decline in first-quarter profit due to the pandemic.

Several medical device makers, including Abbott Laboratories, have said demand for less urgent medical procedures has recovered from the lows experienced in April as coronavirus-induced restrictions eased across the United States.

Medtronic, which has a plant in Galway and an office in Dublin, said sales of ventilators more than doubled as production rose to address pandemic needs.

The company's chief executive officer, Geoff Martha, said the medical device maker's results reflect a "faster than expected recovery" from the depths of the pandemic seen back in April.

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Net income attributable to the company fell to $487 million, or 36 cents per share, in the first quarter ended July 31, from $864 million, or 64 cents per share, a year earlier.

Excluding items, Medtronic earned 62 cents per share, while revenue fell 13.2 per cent to $6.51 billion.

Shares of the company were up 1.3 per cent at $101.5 before the bell. – Reuters

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