MEDTRONIC <MDT> SEES 15 PCT EARNINGS GROWTH Medtronic Inc said it sees 15 pct growth in sales and earnings for the year ending April 30, 1988. At an analysts meeting here the company said that for the year ending April 30, 1987 it will earn about 73 mln dlrs, or about 5.15-5.35 dlrs a share on sales of about 500 mln dlrs. In the year ago period, the company earned 53.4 mln dlrs, or 3.65 dlrs a share, on sales of 402.8 mln dlrs. Winston Wallin, Medtronic chairman, said the company will improve market share in fiscal 1988 in cardiac pacemakers and expand its cardiovascular therapeutic product line. Wallin cautioned analysts not to quickly change their per share estimates for the company as he said Medtronic will have heavy sales and marketing expenses in fiscal 1988. He said the company intends to reinvest its earnings in its businesses and not in its dividends. "Shareholders are better off if we grow the business rather than reinvest in dividends or share repurchases," he said. Wallin said he sees Medtronic's share of the total worldwide pacemaker market increasing to 42 pct in fiscal 1988, from 40 pct in fiscal 1987. He said the worldwide market for cardiovascualr therapeutic products, which includes pacemakers, valves, catheters and lasers, will be valued at about 2.5 billion dlrs 1990 and will double that by 1995. Wallin said, "Our objective is to get a hold of new products and start building market share if we have to beg, borrow or steal to get into new markets." In the past, Medtronic's pacemakers have been plagued with a number of problems leading to product recalls. Regulators also have criticized the industry, citing quality problems and a needless overprescription of pacemakers. "We have no knowledge of any major problems in our pacemakers or leads," Wallin said. "We intend to re-establish our company as the quality leader in the industry." Glen Nelson, executive vice president for Medtronics, said the company intends to diversify internally and through acquisitions of companies in areas of Medtronic's expertise, such as drug delivery systems. Wallin said the 15 pct earnings growth for fiscal 1988 does not include dilutions from acquisitions. "We hope to have some safety provisions so that we won't have any major dilutions from an acquisition." Wallin also said the company will have virtual exclusivity in rate responsive pacemakers for all of fiscal 1988. The company markets Activitrax, the first single chamber pacemaker that varies heartrate in response to physical activity. Siemens AG, a West German company, is also developing a rate responsive pacemaker.