Spurred by sales of medical devices beyond its core cardiovascular business, Boston Scientific Corp. said Thursday that profit rose in the second quarter.
The Natick, Mass.-based medical technology company, which employs about 5,000 people in Minnesota, said sales in the quarter ended June 30 were essentially flat at $2 billion.
Net income for the quarter was $146 million, or 10 cents a share, compared with $98 million, or 6 cents a share, the same period a year ago.
Wall Street was expecting earnings of 9 cents a share.
Taking into account $116 million in various charges, adjusted net income for the quarter was $262 million, or 17 cents a share, versus $190 million, or 12 cents a share.
However, its core businesses of heart defibrillators continued to languish in the quarter.
Sales in the cardiac rhythm management business, based in Arden Hills, were $544 million, up 3 percent, while sales in the interventional cardiology business decreased 1 percent to $652 million, as questions surfaced about the possible overuse of heart stents in patients.
Sales were strong in the company neuromodulation business, which include pacemaker-like devices that treat chronic pain with a 17 percent sales increase to $84 million. Sales in the endoscopy area increased 12 percent to $298 million.
Boston Scientific also said it was paying down $750 million in term loan borrowings, reducing the company's debt to $4.2 billion, and will repurchase $1 billion in company stock. This comes after Wednesday's announcement that it was investing $150 million in the growing Chinese market.
The company also announced a restructuring program that will generate gross annual savings of $225 million to $275 million by the end of 2013 and result in the loss of 1,200 to 1,400 jobs. Boston Scientific said in a news release that the move will involve "standardizing and automating certain processes and activities; relocating select administrative and functional activities; rationalizing organizational reporting structures; leveraging preferred vendors, and taking other actions."
Boston Scientific's stock was up 11 percent in early morning trading to $7.43.
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