(RTTNews) - Medical device maker St. Jude Medical, Inc. (STJ: News ) reported Wednesday a decline in third-quarter profit, hurt by one-time charges mainly on employee termination. On an adjusted basis, quarterly earnings grew from last year, boosted by higher sales that came in line with market projections. Further, the St. Paul, Minnesota-based company issued fourth-quarter earnings forecast, and lowered fiscal 2009 projection, both below Wall Street view.

Third-quarter net earnings were $166.94 million or $0.48 per share, compared to $184.70 million or $0.53 per share in the same quarter last year.

The latest quarter results included pre-tax charges of $57 million, or $0.11 per share, comprised primarily of employee termination costs related to continuing efforts to improve sales and sales support productivity as well as to streamline manufacturing operations.

Excluding charges, adjusted net earnings for the quarter were $204 million or $0.59 per share, compared to $189.60 million or $0.54 per share in the year-ago quarter.

On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.

The maker of cardiovascular and implantable neurostimulation medical devices recently had lowered its adjusted earnings outlook for the quarter, and was expecting in a range of $0.57 to $0.58 per share, citing lower than expected sales.
Net sales for the quarter rose 7% to $1.16 billion, as expected, from $1.08 billion a year ago, and came in line with twenty seven Wall Street analysts' consensus estimate of $1.16 billion. Foreign currency translation comparisons decreased third quarter sales by approximately $29 million. The company recorded total international sales of $540 million, and total US sales of $620 million.

Commenting on the results, St. Jude Medical Chairman, President and Chief Executive Officer Daniel Starks said, "Despite some challenging dynamics experienced during the third quarter, St. Jude Medical's revenue grew approximately 10% and we delivered 15% growth in adjusted earnings per share on a constant currency basis. International revenue grew 15% in the quarter, constant currency, but U.S. revenue was lower than expected."

Segment-wise, Cardiac Rhythm Management, or CRM, sales, which include implantable cardioverter defibrillator, or ICD, and pacemaker products, were $690 million, up 2% from last year. On a currency neutral basis, total CRM sales grew 5%. ICD product sales rose 2% year-over-year to $389 million, while the growth was 5% after adjusting for the impact of foreign currency. Third-quarter pacemaker sales totaled $301 million, up 1% on a reported basis, and up 4% adjusting for the impact of foreign currency.

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