Wednesday, biocides company Arch Chemicals, Inc. (ARJ) reported a lower profit for the third quarter compared to last year as sales declined. The company also provided earnings outlook for the fourth quarter, while revising its view for the fiscal 2009. The Norwalk, Connecticut-based company's third quarter net income declined to $10.3 million or $0.41 per share from $17.0 million or $0.68 per share in the prior year quarter. Results for the quarter included a net tax related to estimated executive severance of $0.7 million or $0.03 per share.
Excluding executive severance net tax, income from continuing operations was $11.0 million or $0.44 per share compared with $17.8 million or $0.71 per share, excluding pension settlement in the same quarter last year.
Arch Chemicals' net sales for the quarter were down to $350.5 million from $367.9 million in the comparable quarter last year as higher pricing and the benefit from the Advantis acquisition were more than offset by lower volumes and unfavorable foreign exchange. Analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share on revenues of $359.50 million for the quarter. Analysts' estimates typically exclude one-time items.
On a segmental basis, sales for treatment products edged down to $309.7 million from $310.9 million in the year-ago period. Performance products segment sales declined to $40.8 million from $57.0 million in the year ago period.
For the current quarter, operating income decreased to $20.4 million from $29.3 million in the year ago period.
For the nine months, net income was $44.4 million or $1.77 per share, down from $55.9 million or $2.24 per share in the prior year. Year-to-date net sales were $1.05 billion compared with $1.18 billion last year.
Looking ahead, the company expects results from continuing operations to be in the range of breakeven to a loss of $0.15 per share for the fourth quarter. Analysts expect earnings of $0.07 per share for the quarter.
Arch revised its earnings outlook from continuing operations for the full year 2009 to be in the range of $1.65 to $1.80 per share from the previous guidance of $1.60 to $1.80 per share. Sales for the full year are expected to be 6% to 7% lower than last year as the contribution from the acquisition of Advantis and higher pricing should be more than offset by lower volumes and unfavorable foreign exchange.
Analysts expect earnings of $1.70 per share, on revenues of $1.4 billion for fiscal 2009.
ARJ is currently trading at $27.80,down $0.20 or 0.71% on a volume of 0.05 million shares on the NYSE.
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