Zoll Expects Weak 2Q Profit Amid Hospital Cutbacks

CHELMSFORD, Mass. (AP) — Zoll Medical Corp. said Tuesday its fiscal second-quarter results will fall well short of expectations due to weak sales to the North American hospital market linked to the recession.

The company is forecasting profit of 5 cents to 10 cents per share and $90 million to $92 million in revenue for the quarter ended in March. It said military revenue and sales of external defibrillators were also lower than expected.

Analysts had expected Zoll Medical to report a much higher profit of 24 cents per share and $101.4 million in revenue for the period, according to Thomson Reuters. In the second quarter of 2008, Zoll posted a profit of 27 cents per share and $99.2 million in revenue.

The company is scheduled to report its quarterly results in mid- to late April.

Zoll said sales to North American hospitals, excluding the military, fell more than 30 percent compared with last year, as customers trimmed their spending on equipment amid the credit crunch and weak economy. But the company said orders did improve compared with the first quarter, and sales of the AutoPulse heart support pump and the wearable LifeVest defibrillator showed growth.