Medtronic Earnings Increased 13%

Medical-device maker Medtronic Inc. posted a slightly better-than-expected 13% rise in profit for its fiscal second-quarter as it took advantage of two new growth markets--treatments for heart failure and diabetes.

The company said earnings grew to $309.1 million, or 29 cents a share, a penny better than the average estimate of analysts polled by Thomson Financial/First Call. Sales rose 17% to $1.571 billion.

Including onetime charges of $294.9 million related to research and development and acquisitions, Medtronic’s net income was $66.7 million, or 5 cents a share.

Medtronic Chief Financial Officer Bob Ryan said the company expects to see third-quarter revenue and earnings-per-share growth exceed the company’s stated 15% goals. Chief Executive Art Collins said the company expects accelerating growth as several new products are introduced during the first half of the next calendar year.

Shares of Minneapolis-based Medtronic rose 70 cents to $44.74 in extended trading after closing off 2 cents at $44.04 in NYSE trading.