DOW JONES NEWSWIRES
C.R. Bard Inc.'s (BCR) second-quarter profit jumped 44% on
higher margins and prior-year charges as the medical device maker
also saw slight sales gains.
Shares fell 1.4% after-hours, to $71.83, as revenue fell short
of analysts' expectations.
Bard's varied portfolio of often-disposable products seemed to
protect it from hospital cutbacks, which first targeted big-ticket
items. However, sales fell last quarter, and the company said
distributors in the U.S. would probably reduce inventory.
But in April, the company said it would cut costs to protect its
goal of 14% earnings-per-share growth this year. It also increased
its quarterly dividend in June.
C.R. Bard posted a profit of $112.2 million, or $1.11 a share,
up from $77.9 million, or 76 cents a share, a year earlier.
Excluding restructuring and other charges, earnings rose to $1.23
from $1.10.
Revenue climbed 1.2%, to $624.6 million, or 6% excluding
currency changes.
Analysts surveyed by Thomson Reuters predicted earnings of $1.21
a share on revenue of $634 million.
Gross margin was 61.8% from 60.6%.
Vasular sales saw 11% growth on a constant-current basis, or 3%
overall. Oncology saw gains of 6% and 2% respectively, while
urology had a 3% increase, excluding currency changes. Total
urology sales fell 1%, helping narrow the gap between urology,
Bard's biggest-selling category by revenue, and vascular and
oncology. All three are similar-sized.
-By Joan E. Solsman and Kevin Kingsbury, Dow Jones Newswires;
212-416-2291; joan.solsman@dowjones.com