Haemonetics 3Q profit drops 46 pct as costs rise
BRAINTREE, Mass. (AP) — Haemonetics Corp.'s fiscal third quarter earnings plunged 46 percent, as the blood management company invested in a new business and incurred other charges that dragged down results.
The Braintree, Mass., company said Wednesday it earned $9.9 million, or 19 cents per share, in the quarter that ended Dec. 29. That compares with earnings of $18.3 million, or 36 cents per share, in the final quarter of 2011. Excluding one-time costs, adjusted earnings totaled 50 cents per share.
The company's revenue climbed 29 percent to $247.4 million.
Analysts surveyed by FactSet expected, on average, earnings of 47 cents per share on $251.8 million in revenue.
Haemonetics provides blood management systems for health care providers and blood collectors. Revenue excluding the company's recently acquired whole blood business climbed 1 percent to $192.5 million in the quarter.
The company said revenue from its plasma disposables slipped 1 percent to $68.1 million due in part to a tough comparison to the previous year's quarter, which saw strong growth. Platelet disposables revenue climbed 2 percent to $45.1 million.
The company also booked $25 million in costs in the quarter due in part to integration costs and restructuring expenses, mostly related to the acquisition of the whole blood business.
Selling, general and administrative expenses climbed 41 percent to $86.8 million, and the company's research and development cost also rose nearly 15 percent to $10.6 million. Haemonetics said its rise in operating expenses included $14 million for its new whole blood collection business.
The company also reaffirmed its expectation for fiscal 2013 adjusted earnings to range from $1.65 to $1.70 per share. It expects revenue to fall between $888 million and $898 million.
Analysts expect, on average, earnings of $1.69 per share on revenue of $900.3 million.
For fiscal 2014, Haemonetics forecast adjusted profit in the range of $1.95 to $2.05 per share. Revenue is expected to top $1 billion.
Analysts expect, on average, earnings of $2.01 per share on $1.02 billion in revenue.
Haemonetics shares closed Tuesday at $44.44, up about 9 percent since the start of the year. The stock was not trading in the premarket session.