Health care product supplier
said Thursday it will take a charge of $667,000, or a penny a share, in the first quarter, related to a nationwide recall of 383 batches of its store brand acetaminophen 500 milligram caplets, which may contain metal particulate.
The total cost of the recall for sales returns, handling of on-hand inventories and disposal is estimated to be $2.9 million. The first-quarter earnings will now be 18 cents a share, down from the previously reported 19 cents a share.
Perrigo reaffirmed its full-year 2007 earnings of 86 cents a share to 91 cents a share, excluding restructuring costs. Analysts polled by Thomson First Call are expecting earnings of 90 cents a share.
"Although the frequency of occurrence is very low, the probability of health risk is remote, and there have been no reports of injuries or illness related to this incident, we are taking this measure to maintain the highest possible product quality standards for our retail customers and their store brand consumers," the Allegan, Mich.-based Perrigo said.
Discussions are continuing with the raw material supplier to determine the extent to which the recall-related costs may be recoverable, the company added.
The company's shares were trading down 69 cents, or 3.8%, at $17.32 Thursday.
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