MANSFIELD – Medical equipment manufacturer Covidien Plc on Thursday reported a profit for the third quarter of fiscal year 2010, with sales in medical devices offsetting a disappointing performance in its pharmaceutical business segment.

Covidien posted net income of $364 million, or 70 cents per diluted share, in the three months ended June 25, compared with a profit of $281 million, or 54 cents per diluted share, in the same quarter last year. Revenue rose 2 percent to $2.56 billion.

The Medical Devices business segment rose 6 percent over last year to $1.63 billion, with growth driven by sales of stapling products.

Sales in pharmaceuticals fell 6 percent to $507 million in the third quarter. The decrease in sales was attributed to increased competition and new product sales that did not offset the decrease in sales of existing products.

Additionally, Covidien reported medical supply sales of $427 million in the third quarter, down 3 percent from last year due to lower sales of SharpSafety and Nursing Care products.

“Although top-line performance, particularly in Pharmaceuticals, did not meet our expectations, our largest business segment, Medical Devices, posted another good quarter,” said Richard J. Meelia, chairman, president and CEO of Covidien. “We remain confident that we have the portfolio, products and programs required to deliver strong operational results, aided by our substantial cash flow.”

During the third quarter, Covidien announced acquisitions of ev3 Inc. and Somanetics Corp., and agreed to sell its specialty chemicals division. The company also released new pharmaceutical and stapling products.

Additional information is available at www.covidien.com.