Medical device maker Medtronic Public Limited Company reported a drop in second quarter earnings after hurricanes and wildfires in the Americas disrupted operations.
The company, which makes pacemakers and artificial heart values, reported net adjusted profits of US$1.46bn, or US$1.07 a share, for the three months to 27 October, down almost 7% on the same period a year ago. This included a 3% impact from Hurricane Maria, which caused damage to the company's four plants in Puerto Rico.
Revenue dropped 4% to US$7.05bn on a reported basis, largely as a result of the company’s divestment in its Patient Care, Deep Vein Thrombosis (Compression), and Nutritional Insufficiency businesses to Cardinal Health at the beginning of the quarter.
Without the divesture or currency impact, revenue increased 3%.
Excluding the estimated US$55mln to US$65mln impact of Hurricane Maria, second quarter revenue growth would have been 4% on a comparable, constant currency basis.
“Our second quarter financial results are very encouraging, when considered in the context of a quarter in which we faced three hurricanes and the California wildfires,” said Omar Ishrak, Medtronic chairman and chief executive officer.
“Hurricane Maria, in particular, significantly affected our manufacturing operations in Puerto Rico.
“Against this backdrop, we delivered a sequential acceleration in our organic revenue growth, as expected.”
Medtronic also has plants in northern California that were damaged by wildfires in October.
The company, however, continues to expect currency-adjusted revenue growth of 4 to 5% for the fiscal year and adjusted diluted earnings per share growth between 9% and 10 %.