Boston Scientific Returns To Profit In 3rd Qtr

NATICK, Massachusetts (AP) — Medical device maker Boston Scientific Corp. returned to a profit in the third quarter, reporting Monday that sales of its heart-shocking implants held up in spite of hospital cutbacks squeezing its competitors.

But the company cut its full-year earnings outlook, noting that market growth has been weaker than expected. Its shares tumbled in after-hours trading.

Boston Scientific said sales for the third quarter rose 3 percent to $2.03 billion on higher revenue for implantable cardiac defibrillators, which control irregular heart rhythms.

Net income for the period was $200 million, or 13 cents per share, compared with a net loss of $62 million, or 4 cents per share, for the same period last year when acquisition costs bogged down profits.

Health care companies are typically seen as resilient to financial downturns, but medical device sales have declined amid cutbacks by both hospitals and patients.

Rival company St. Jude Medical recently reported a decline in sales of the cardiac devices to hospitals. Boston Scientific said its product sales increased 5 percent to $445 million, though growth was still slow.