Covidien swings to loss

Medical device maker and diversified health care company Covidien Ltd., which split from Tyco International late June, said today that it swung to a fiscal third-quarter loss after booking a hefty charge related to a legal settlement involving its former parent.

For the quarter ended June 29, the loss was $1.1 billion, or $2.23 per share, compared with a profit of $387 million, or 73 cents per share, in the year-ago period.

Latest results included a $1.2 billion charge for the company's share of a Tyco International shareholder settlement, as well as a $30 million in-process research and development charge for the Sorbx technology acquisition. There was also a $5 million restructuring charge.

Excluding those items, earnings from continuing operations were 67 cents per share. Analysts polled by Thomson Financial expected profit of 70 cents per share on revenue of $2.57 billion.

Revenue rose to $2.58 billion from $2.46 billion.

The company's fiscal year ends Sept. 20.

During the quarter, medical device sales rose 8.6 percent to $1.58 billion, while imaging product sales rose 4.8 percent to $238 million. Pharmaceutical sales rose 8.5 percent to $333 million but medical supply sales fell 3.1 percent to $247 million and retail products sales fell 18 percent to $178 million. (AP)