Covidien reported top-line operational growth that was in line with expectations as the company posted a 3% gain in sales in the third quarter of fiscal 2012 (end-June 29).
Third-quarter net sales increased 3% to $3.01 billion U.S., compared with $2.93 billion reported in the third quarter of the last fiscal year. Net income slipped to $453 million, compared with $535 million in fiscal 2011's third quarter.
Covidien's Medical Devices segment contributed a 4% increase in sales in the third quarter, to $2.06 billion, compared with $1.98 billion in the third quarter of fiscal 2011. Pharmaceutical sales increased slightly to $501 million in the quarter, compared with $500 million in the same quarter of the last fiscal year.
For the nine-month period, net sales advanced 4% to $8.85 billion, compared with $8.5 billion in the first nine months of fiscal 2011. Net income increased to $1.44 billion for the nine months, compared with net income of $1.42 billion in the same period of the last fiscal year.
Sales in the Medical Devices unit advanced 5% to $6.05 billion, compared with $5.73 billion for the nine-month period of fiscal 2011. Pharmaceutical sales rose 3% to $1.5 billion, compared with $1.46 billion in the same period of the last fiscal year.
The company described sales growth in emerging markets as "outstanding," adding that investments to expand the company's sales force and marketing efforts are reaping the benefits.
