Kinetic Concepts 3Q Profit Rises 20 Percent

SAN ANTONIO (AP) — Medical technology company Kinetic Concepts Inc. said Wednesday its third-quarter profit jumped 20 percent on lower costs, a boost from international sales, and a better profit margin.

The company earned $64.6 million, or 91 cents per share, compared with profit of $53.9 million, or 75 cents per share, during the same period a year prior. Revenue rose slightly to $504.4 million from $503.3 million.

Excluding acquisition charges, the company said it earned $1.08 per share. Analysts polled by Thomson Reuters expected profit of $1.05 per share on revenue of $504 million.

Kinetic Concepts makes a range of wound care products and therapies, many of which are used in hospital intensive care units.

While overall revenue remained relatively flat, the company cut rental expenses by 7 percent to $169.6 million while cost of sales fell 10 percent to $59.9 million. Also, a weaker U.S. dollar boosted the value of sales in international markets, adding about $3.2 million to the bottom line. Profit margin rose about 4 percentage points to 55 percent.