Techne 1Q profit down, strong dollar hurts sales
MINNEAPOLIS (AP) — Techne Corp., which makes medical testing and diagnostic products, said Tuesday that its net income fell 7 percent in the fiscal first quarter as the stronger U.S. dollar cut into its international sales and U.S. biotechnology sales declined.
Techne said its biotechnology revenue decreased because the dollar gained against other currencies like the euro and the British pound. Its net income and revenue in the July-September quarter fell short of Wall Street estimates.
The company said its net income slipped to $25.7 million, or 70 cents per share, from $27.5 million, or 74 cents per share. Techne said it earned 75 cents per share if one-time items are excluded. Revenue fell 3 percent, to $75 million from $77.6 million.
Analysts were forecasting greater income of 80 cents per share and $77.5 million in revenue, according to FactSet.
The Minneapolis company said its biotechnology revenue fell 4 percent to $69.5 million on lower sales to U.S. customers. Biotechnology revenue would have dropped 1.2 percent when stripping out the effects of changing currency values. A stronger dollar means income from overseas is translated back into fewer dollars.
Hematology revenue edged up to $5.5 million from $5.3 million
Shares of Techne closed at $69.58 on Monday and were unchanged in premarket trading Tuesday.