Covidien 2Q profit falls, adjusted results top Wall Street

NEW YORK—Covidien Ltd., a Bermuda-based medical device maker and diversified health care company, said Tuesday its fiscal second-quarter profit fell 33 percent on restructuring and other charges, but adjusted results topped analysts' estimates.

Earnings dropped to $263 million, or 52 cents per share, compared with $394 million, or 79 cents per share, in the previous year.

Income from continuing operations slipped to $249 million, or 49 cents per share, from $377 million, or 76 cents per share.

Excluding 11 cents per share for restructuring and asset impairment charges and 6 cents per share for the company's part of a Tyco shareholder settlement, income from continuing operations dipped to 66 cents per share from 68 cents per share.

Revenue for the period ended March 28 gained 11 percent to $2.43 billion from $2.2 billion on improved results from its medical devices and imaging solutions segments.

Analysts expected net income of 59 cents per share on sales of $2.37 billion, according to a Thomson Financial poll.

Restructuring and asset impairment charges jumped to $64 million from $4 million, while research and development costs increased to $75 million from $63 million.

Selling, general and administrative expenses rose to $696 million from $580 million.

Covidien was spun off from parent company Tyco International Inc. last July.