MEDTRONIC <MDT> SEES 15 PCT EARNINGS GROWTH
Medtronic Inc said it sees 15 pct
growth in sales and earnings for the year ending April 30,
1988.
    At an analysts meeting here the company said that for the
year ending April 30, 1987 it will earn about 73 mln dlrs, or
about 5.15-5.35 dlrs a share on sales of about 500 mln dlrs.
    In the year ago period, the company earned 53.4 mln dlrs,
or 3.65 dlrs a share, on sales of 402.8 mln dlrs.
    Winston Wallin, Medtronic chairman, said the company will
improve market share in fiscal 1988 in cardiac pacemakers and
expand its cardiovascular therapeutic product line.
    Wallin cautioned analysts not to quickly change their per
share estimates for the company as he said Medtronic will have
heavy sales and marketing expenses in fiscal 1988.
    He said the company intends to reinvest its earnings in its
businesses and not in its dividends. "Shareholders are better
off if we grow the business rather than reinvest in dividends
or share repurchases," he said.
    Wallin said he sees Medtronic's share of the total
worldwide pacemaker market increasing to 42 pct in fiscal 1988,
from 40 pct in fiscal 1987.
    He said the worldwide market for cardiovascualr therapeutic
products, which includes pacemakers, valves, catheters and
lasers, will be valued at about 2.5 billion dlrs 1990 and will
double that by 1995.
    Wallin said, "Our objective is to get a hold of new
products and start building market share if we have to beg,
borrow or steal to get into new markets."
    In the past, Medtronic's pacemakers have been plagued with
a number of problems leading to product recalls. Regulators
also have criticized the industry, citing quality problems and
a needless overprescription of pacemakers.
    "We have no knowledge of any major problems in our
pacemakers or leads," Wallin said. "We intend to re-establish
our company as the quality leader in the industry."
    Glen Nelson, executive vice president for Medtronics, said
the company intends to diversify internally and through
acquisitions of companies in areas of Medtronic's expertise,
such as drug delivery systems.
    Wallin said the 15 pct earnings growth for fiscal 1988 does
not include dilutions from acquisitions. "We hope to have some
safety provisions so that we won't have any major dilutions
from an acquisition."
    Wallin also said the company will have virtual exclusivity
in rate responsive pacemakers for all of fiscal 1988.
    The company markets Activitrax, the first single chamber
pacemaker that varies heartrate in response to physical
activity.
    Siemens AG, a West German company, is also developing a
rate responsive pacemaker.
   
 Reuter
