Boston Scientific Posts First-Quarter Profit

Boston Scientific Corp. reported that profits rose in the first quarter of this year although U.S. sales were either flat or down in the company’s key product lines.

The Natick, Mass.-based maker of pacemakers, stents and other medical devices, reported that income was $133 million in the first quarter of 2014 (ended March 31), compared with a $354 million net loss in the same quarter in 2013 when it reported a goodwill impairment charge and other charges and expenses relating to restructuring and litigation.

Worldwide net sales rose 1 percent to $1.77 billion on an as-reported basis in the first quarter of this year, compared with $1.76 billion in the first quarter of last year. Sales of cardiovascular devices were flat at $700 million, while rhythm management product sales increased 2 percent to $524 million.

Also on the upside, the company achieved 7 percent revenue growth overall in its MedSurg business ($548 million), with neuromodulation growing 23 percent ($109 million), urology and women’s health growing 8 percent ($125 million), and Endoscopy ($314 million) growing 5 percent, all on a constant currency basis over the prior year period.

In the U.S. market, however, sales of pacemakers were flat in the first quarter, as were sales of total coronary stent systems such as bare-metal and drug-eluting stents. Sales of defibrillators fell to $208 million in the first quarter of 2014, compared with $221 million in the first quarter of 2013.

“I am pleased with our overall performance in the first quarter as our team delivered accelerated EPS and consistent revenue growth,” said Mike Mahoney, president and CEO. “Our international businesses performed very well in the quarter as we continued to diversify geographically. We remain confident in both our outlook for the year and in our strategy.”

Mahoney said on a conference call with analysts and journalists that the company’s performance so far this year represents the fourth straight quarter of operational revenue growth as its continues to “build momentum and deliver on our commitments.”

Mahoney, understandably so, was bullish on the role international markets play in bolstering the company’s performance.

“We’re very encouraged by our pan-BSC European results in the quarter with 10 percent sales growth,” he said. “In addition, we delivered 22 percent revenue growth in the emerging markets. Our emerging markets are steadily increasing in scale and now represent 9 percent of total company sales. And we are well on our way to our goal of 15 percent of total sales generated in the emerging markets.”