Medtronic’s Q4 Profit Plummets 69%

Medtronic Inc.’s fourth-quarter profit dipped 69 percent as sales slipped and it absorbed reorganization and other costs, according to the company.

Officials at the Fridley, Minn.-based firm said it earned $250 million, or 22 cents a share, in the three months ended April 24, down from $812 million, or 72 cents a share, a year earlier.

“In 2009, we delivered on our financial commitments despite unforeseeable shifts in the economy.We strengthened our core businesses, made several strategic acquisitions in high potential markets, and made solid progress advancing our pipelines by increasing our focus and discipline on driving innovation across the company,” said Bill Hawkins, chairman and CEO. “In addition, this was our second consecutive quarter of generating greater than $1 billion in free cash flow, which reflects our strong balance sheet management in addition to our focus on operational excellence.”

The charges were for streamlining operations, slashing jobs as part of a reorganization program and a patent dispute settlement with its rival, New Brunswick, N.J.-based Johnson & Johnson.

Excluding charges, the company said it earned 82 cents a share. Revenue slipped 1 percent, to $3.83 billion, from $3.86 billion a year earlier. Analysts expected revenue of $3.84 billion.

For the year, the company earned $2.29 billion, or $2.04 a share, up from $2.23 billion, or $1.95, in 2008. Revenue rose to $14.6 billion, from $13.52 billion.