Allergan 3Q Net Up 8% Amid Cost Cuts; 2009 View Raised
DOW JONES NEWSWIRES
Allergan Inc.'s (AGN) third-quarter profit rose 8% on higher sales and margins
at the eye- and skin-care products company.
The maker of Botox and the nation's largest seller of medical products for
appearance-enhancement treatments raised its 2009 outlook and forecast stronger-
than-expected results this quarter.
It now expects 2009 earnings, excluding items, of $2.75 a share to $2.77 a
share and product net sales of $4.35 billion to $4.4 billion. The company in
July narrowed projections to earnings of $2.71 to $2.75 and product sales of $
4.2 billion to $4.3 billion.
Allergan also forecast fourth-quarter income of 75 cents to 77 cents a share
on product sales of $1.11 billion and $1.16 billion. Analysts surveyed by
Thomson Reuters were projecting a 75-cent profit and total revenue of $1.1
billion.
Makers of aesthetic medical treatments have felt pressure from the weak
economy as customers trim cosmetic procedures from their budgets, prompting
Allergen to cut 5% of its work force. But the company has been able to report
growth despite the operating environment.
Allergan said third-quarter earnings rose to $179.2 million, or 58 cents a
share, from $166 million, or 54 cents a share, a year earlier. Excluding
restructuring and other impacts, profit rose to 70 cents a share from 65 cents.
Product net sales increased 4.2% to $1.13 billion, but grew 7% in constant
currencies.
In July, Allergan forecast weaker-than-expected earnings, excluding items, of
67 cents to 69 cents a share, on product sales of $1.05 billion to $1.1 billion.
Excluding charges, operating margin rose to 27.4% from 26.6% on lower costs.
Pharmaceutical sales rose 7.8% while medical-device revenue fell 11%. Both
were impacted by three percentage points by currency changes.
Botox sales rose 3%. Early this month, Allergan filed a lawsuit against
federal health officials asserting that the government had violated its free-
speech rights by barring the company from offering information about the
unapproved use of Botox and other products.
-By Mike Barris, Dow Jones Newswires; 212-416-2330; mike.barris@dowjones.com
(END) Dow Jones Newswires
10-29-090956ET
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