American Oriental Bioengineering 1Q Profit Shrank

NEW YORK (AP) — American Oriental Bioengineering Inc. said Monday its profit fell 17 percent in the first quarter due to much smaller gains on foreign currency exchanges.

The Chinese company posted a profit of $7.9 million, or 11 cents per share. A year ago, the drug and nutritional product maker earned $9.4 million, or 12 cents per share. Revenue increased 19 percent to $46.1 million from $38.8 million, due to greater sales of prescription drugs and nutritional items.

Analysts expected 12 cents per share and $48.4 million in revenue, according to Thomson Reuters, and in afternoon trading, shares of American Oriental Bioengineering shed 60 cents, or 11 percent, to $4.85.

The company reported a benefit of about $378,500 from currency exchange, sharply lower than the $6.9 million in reported last year. Interest expenses also increased. As a result, income from operations fell 6 percent, to $11.2 million from $12 million.

Prescription drug revenue grew 15 percent in the first quarter, reaching $16.2 million. Sales of over-the-counter drugs were roughly unchanged at $18.5 million, and nutritional product revenue rose 29 percent to $8.9 million.