(RTTNews) - Infection prevention and contamination control solutions provider Steris Corp. (STE: News ) reported Tuesday an increase in second-quarter profit, helped by lower raw material and operating costs. The company also raised its earnings guidance for the full year, while maintaining its revenue outlook. Further, Steris' Board approved a special dividend of $2.00 per share, apart from its regular quarterly dividend.

For the second quarter, net income rose to $32.08 million or $0.54 per share from $28.79 million or $0.48 per share in the previous year. On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share for the second quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter dropped 3% to $314.23 million from $323.13 million. Three analysts were expecting revenue of $296.63 million for the second quarter. On a constant currency basis, revenues came down 2%.

Segment-wise, Healthcare revenues dipped 2% to $223.01 million from $227.84 million, and Life Sciences revenues decreased 5% to $54.40 million from $57.15 million, because of declines in capital equipment and service revenues in both segments.

Revenue from Steris Isomedix Services slid 6% to $34.74 million from $36.97 million, reflecting sale of two facilities during fiscal 2009.

Gross profit for the quarter edged up year-over-year to $132.66 million from $132.36 million, as cost of revenues reduced sharply to $181.57 million from $190.76 million.
Operating income increased 7% to $50.1 million from $47.0 million in the second quarter last year. Selling, general, and administrative costs reduced to $74.52 million from $77.29 million, while non-operating expense increased to $2.85 million from $1.98 million.

Commenting on the results, Walt Rosebrough, Chief Executive Officer of Steris, said, "As we anticipated, our year-over-year revenue decline improved this quarter, and our expectation is that this trend will continue for the remainder of our fiscal year. We have also benefited from favorable foreign currency exchange rates and lower raw material costs so far this year, and we have continued to improve efficiencies. These trends combined to expand our operating margins even in the face of lower revenue."

For the first half of fiscal 2010, net income rose to $57.63 million or $0.97 per share from $54.29 million or $0.90 per share in the past year. Revenues shrank to $597.77 million from $634.69 million in the same period last year.

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