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Steris 4Q Profit Rises On Lighter Costs

The Associated Press

MENTOR, Ohio (AP) — Medical products maker Steris Corp. said Thursday its fiscal fourth-quarter profit rose 7 percent as lower restructuring costs offset the revenue decline from lower demand.

The company earned $27.8 million, or 47 cents per share, up from profit of $26.1 million, or 42 cents per share, during the same period a year prior. Revenue fell 8 percent to $344.4 million from $375.2 million. The fiscal 2009 fourth quarter and full-year ended March 31.

Analysts polled by Thomson Reuters expected profit of 40 cents per share on revenue of $351.8 million.

Health care products revenue fell 6 percent to $249.2 million while sales in life sciences tools and equipment fell 20 percent to $58.7 million. Isomedix contract sterilization services revenue fell slightly to $34.2 million.

Meanwhile, operating expenses fell 13 percent to $92.2 million.

For the full year, the company earned $110.7 million, or $1.86 per share, up from $77.1 million, or $1.20 per share, in fiscal 2008. Revenue rose to $1.3 billion from $1.27 billion.

"We anticipate that fiscal 2010 will continue to be a challenging environment, but we remain encouraged by customer response to our new products," said President and Chief Executive Walt Rosebrough in a statement.

Looking ahead, the company said it expects profit for fiscal 2010 to range from $1.80 to $2 per share on revenue that will range from flat to a mid-single digit decline. Analysts expect profit of $1.79 per share on revenue of $1.31 billion.

Steris shares rose $3.29, or 14 percent, to $26.69 in morning trading. The stock has traded between $19.20 and $38.93 over the past 52 weeks.