11.13.13
Medical device maker C.R. Bard Inc. reported a 28 percent drop in third-quarter income due to acquisition-related expenses, though the company’s adjusted results still beat Wall Street estimates.
The Murray Hill, N.J.-based company’s sales rose 5 percent to $758 million during the quarter, on higher sales of the company’s heart devices, surgical tools and other products. For the period ended Sept. 30, the company’s net income was $92.3 million, or $1.15 per share. When adjusted for acquisition-related expenses and other one-time costs, earnings were $122.3 million, or $1.50 per share, down 14 percent from a year ago.
During the quarter, the company announced deals to buy Medafor Inc., a supplier of substances used to control bleeding, for $200 million; and Rochester Medical Inc., a developer and supplier of products for incontinence and urinary drainage, for about $262 million. Both deals are expected to be complete later this year.
For the third quarter 2013, net sales in the U.S. were $500.3 million, an increase of 3 percent compared with the prior-year period. Net sales outside the United States were $257.7 million, an increase of 8 percent over the prior-year period on a reported basis. Excluding the impact of foreign exchange, third quarter 2013 net sales outside the United States increased 6 percent.
The company’s specialty surgery technology was the big earner for the quarter, up 10 percent to $118.1 million, while oncology products brought it the highest sales with $215.5 million, up 6 percent. Despite the lower results, Bard still beat analyst expectations. Wall Street expected earnings per share of $1.40 on sales of $739 million.
The company also recently announced that it was adding a small amount of jobs to a facility in Queensbury, N.Y., bucking the trend within the medtech industry of trimming the fat.
“We are hiring; we’ve shifted a couple of product lines over the last few months to the plant,” C.R. Bard Vice President and Treasurer Scott T. Lowry, told the local newspaper.
The new product lines come from recent acquisitions and Lowry told The Post Star that 30 to 40 positions have been added at the local plant in recent months. Specifically, a drug-coated balloon for the treatment of peripheral arterial disease is now being made in Queensbury, Lowry said. The technology was the result of the $255 million purchase of Minneapolis, Minn.-based Lutonix Inc. in late 2011.
In 2010, C.R. Bard bought Sunnyvale, Calif.-based FlowCardia Inc. for $80 million, and manufacturing related to its devices also has moved to Queensbury, the paper reported. The most recent addition to the Queensbury plant is a production line for angioplasty balloon catheters related to C.R. Bard’s July acquisition of Loma Vista Medical, a Silicon Valley, Calif., startup.
Lowry said the recent hires bring the facility’s employment level to roughly 685, and another 15 or so positions are likely to be filled by the end of the year. Bard laid off 55 workers at the facility in July 2012 and another 54 the following November. Lowry said he wasn’t sure how many previously laid-off workers had been brought back to fill the new positions.
The Murray Hill, N.J.-based company’s sales rose 5 percent to $758 million during the quarter, on higher sales of the company’s heart devices, surgical tools and other products. For the period ended Sept. 30, the company’s net income was $92.3 million, or $1.15 per share. When adjusted for acquisition-related expenses and other one-time costs, earnings were $122.3 million, or $1.50 per share, down 14 percent from a year ago.
During the quarter, the company announced deals to buy Medafor Inc., a supplier of substances used to control bleeding, for $200 million; and Rochester Medical Inc., a developer and supplier of products for incontinence and urinary drainage, for about $262 million. Both deals are expected to be complete later this year.
For the third quarter 2013, net sales in the U.S. were $500.3 million, an increase of 3 percent compared with the prior-year period. Net sales outside the United States were $257.7 million, an increase of 8 percent over the prior-year period on a reported basis. Excluding the impact of foreign exchange, third quarter 2013 net sales outside the United States increased 6 percent.
The company’s specialty surgery technology was the big earner for the quarter, up 10 percent to $118.1 million, while oncology products brought it the highest sales with $215.5 million, up 6 percent. Despite the lower results, Bard still beat analyst expectations. Wall Street expected earnings per share of $1.40 on sales of $739 million.
The company also recently announced that it was adding a small amount of jobs to a facility in Queensbury, N.Y., bucking the trend within the medtech industry of trimming the fat.
“We are hiring; we’ve shifted a couple of product lines over the last few months to the plant,” C.R. Bard Vice President and Treasurer Scott T. Lowry, told the local newspaper.
The new product lines come from recent acquisitions and Lowry told The Post Star that 30 to 40 positions have been added at the local plant in recent months. Specifically, a drug-coated balloon for the treatment of peripheral arterial disease is now being made in Queensbury, Lowry said. The technology was the result of the $255 million purchase of Minneapolis, Minn.-based Lutonix Inc. in late 2011.
In 2010, C.R. Bard bought Sunnyvale, Calif.-based FlowCardia Inc. for $80 million, and manufacturing related to its devices also has moved to Queensbury, the paper reported. The most recent addition to the Queensbury plant is a production line for angioplasty balloon catheters related to C.R. Bard’s July acquisition of Loma Vista Medical, a Silicon Valley, Calif., startup.
Lowry said the recent hires bring the facility’s employment level to roughly 685, and another 15 or so positions are likely to be filled by the end of the year. Bard laid off 55 workers at the facility in July 2012 and another 54 the following November. Lowry said he wasn’t sure how many previously laid-off workers had been brought back to fill the new positions.