Despite flat U.S. sales, Boston Scientific reports first-quarter gains

Boston Scientific Corp., which makes pacemakers, stents and other medical devices, said that profits rose in the first quarter of this year although U.S. sales were either flat or down in the company's key product lines.

The Natick, Mass.-based medical-device manufacturer's net income was $133 million in the first quarter of 2014, compared with a $354 million net loss in the same quarter in 2013 when it reported a goodwill impairment charge and other charges and expenses relating to restructuring and litigation.

Worldwide net sales rose 1% to $1.77 billion on an as-reported basis in the first quarter of this year, compared with $1.76 billion in the first quarter of last year. Sales of cardiovascular devices were flat at $700 million, while rhythm management product sales increased 2% to $524 million and sales of medical and surgical supplies rose 7% to $548 million.

In the U.S. market, however, sales of pacemakers were flat in the first quarter, as were sales of total coronary stent systems such as bare-metal or drug-eluting stents. Sales of defibrillators fell to $208 million in the first quarter of 2014, compared with $221 million in the first quarter of 2013.

The company's executives were upbeat about the results and said during a call with investors they continue to expect sales to climb as much as 5% in 2014, reaching $7.5 billion.

“This represents the fourth straight quarter of operational revenue growth as we continue to build momentum,” President and CEO Michael Mahoney said.

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