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Covidien Management Discusses Q3 2012 Results - Earnings Call Transcript

We will be making some very brief introductory comments and then spend most of the time this morning, as usual, answering your questions.

The press release, with details of our third quarter results, was issued earlier this morning and is available on our website and on the newswires.

During today's call, we'll make some forward-looking statements, and it's possible that actual results could differ materially from our current expectations. Please note that under the Safe Harbor rules, we are under no obligation to update these forward-looking statements even if actual results or our future expectations change materially. We ask that you please refer to the cautionary statements contained in our SEC filings for a more detailed explanation of the inherent limitations of such forward-looking statements.

We'll also discuss some non-GAAP financial measures with respect to our performance today. A reconciliation of non-GAAP to GAAP measures can be found in our press release and its related financial tables as well as in the Investor Relations section of our website

For the third quarter, we reported GAAP diluted earnings per share of $0.93. And after adjusting for certain specified items, our non-GAAP earnings came in at $1.07 per share.

Now, I'll turn it over to Joe who'll go into more detail on the third quarter results. Joe?

Jose E. Almeida

Thanks, Cole. We delivered a very solid performance in the third quarter. Sales were on plan, up 6% operationally and 3% as reported. Our recent acquisitions contributed about 1 point of revenue growth in the quarter. We again registered year-over-year improvement in adjusted gross and operating margins.

In the Medical Devices segment, we had an outstanding quarter with 8% operational growth led by Energy and Vascular products. In the Pharmaceuticals business, we again registered very good performance for Specialty Pharmaceuticals paced by PENNSAID and EXALGO. And in Supplies, sales were somewhat above a year ago.

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