Following major job cuts Wednesday, Boston Scientific ( BSX) early Friday swung to a third-quarter loss on acquisition- and divestiture-related charges but said earnings weren't a disappointment on an adjusted basis despite just 1% sales growth. The medical-device maker reported a loss of $272 million, or 18 cents a share, compared to a profit of $76 million, or 5 cents a share, in the year-ago quarter. Factoring out after-tax acquisition- and divestiture-related charges of $435 million, or 29 cents a share, the company said it earned adjusted income of $299 million, or 20 cents a share, compared to $271 million, or 18 cents a share, on the same basis in the year-ago quarter. Analysts surveyed by Thomson Financial expected 7 cents a share, on revenue of $2.057 billion. The company, which said Wednesday it would slash 2,300 jobs in a restructuring, saw a sales increase of just 1% to $2.05 billion from $2.03 billion a year ago. Stent sales continued to fall worldwide and in the U.S. Global sales of the coronary stent systems were $507 million compared to $607 million in 2006, and U.S. sales of stent systems fell to $268 million compared to $397 million a year ago. The only increases in stents were in international sales, where stent systems garnered $239 million compared to $210 million in the comparable 2006 quarter.
The company reported global sales of drug-eluting coronary stents of $448 million compared to $572 million in the year-ago quarter, and U.S. sales of $240 million compared to $384 million in the 2006 period. Worldwide sales of Boston Scientific's cardiac rhythm management (CRM) group for the third quarter increased 16% to $517 million, compared to $446 million in the 2006 quarter. This included 18% growth of including implantable cardioverter defibrillator (ICD) sales to $372 million. U.S. CRM sales increased to $343 million compared to $296 million for the third quarter of 2006. International CRM sales for the recent quarter were $174 million, compared to $150 million for the third quarter of 2006. Looking ahead, Boston Scientific estimates net sales for the fourth quarter between $2.05 billion and $2.15 billion, and adjusted earnings (before charges related to acquisitions, divestitures and restructuring and amortization expense) in a range of 14 cents and 19 cents a share. On a GAAP basis, the company predicts net loss between 9 cents and 2 cents a share. Shares were up 31 cents, or 2.2%, at $14.16 in early trading Friday.