Covidien falls on rising costs

Investor's Business Daily

The Irish medical device maker said Q2 EPS rose 6% to $1.12, beating views by 3 cents. Sales climbed 5% to $3.1 bil, in line with views. Covidien's (COV)medical device sales rose 4% to $2.09 bil and medical supplies sales rose 1% to $439 mil. Pharmaceutical revenue grew 13% to $573 mil. A reactor that supplies the company's molybdenum isotope was closed due to a problem with the water system. Covidien's costs rose, and it expects another reactor to be shut down for scheduled maintenance during Q3, which could boost costs even more. Shares fell 6.6% to 61.96.

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