Steris Earnings Fall

The quarter misses targets.
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Medical appliances company


(STE) - Get Report

fourth-quarter profits fell 66.2% from a year ago.

The Mentor, Ohio-based company earned $8.5 million, or 12 cents a share, in the quarter, compared with $25 million, or 36 cents a share, in the same period last year. Excluding restructuring expense of $25.3 million related to transfer of the Erie, Pa., manufacturing operations to Monterrey, Mexico, net income from continuing operations was $23.1 million, or 34 cents a share, compared with $25.1 million, or 36 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of 41 cents a share in the latest quarter.

Driven by growth in all three business segments, revenue for the fourth quarter increased 7.9% to $331.3 million. The Wall Street consensus estimate was $328.2 million.

The company anticipates that earnings will be $1.10 a share to $1.20 a share on revenue of $1.21 billion to $1.23 billion for 2007 as against analysts' estimate of $1.22 a share, on revenue of $1.16 billion.

Revenue associated with acquired businesses and strong U.S. sales of its C-Max surgical table helped revenue from the healthcare segment rise 7% to $233.6 million in the quarter. Increased demand for capital equipment in the pharmaceutical production market led to a 16% increase in the fourth-quarter revenues of life sciences to $65.9 million. Isomedix Services increased 2% to $31.8 million.

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