Thursday, Steris Corp. (STE), a protection and contamination control solutions provider, reported an increase in its fourth-quarter profit. On an adjusted basis, earnings per share however declined, but topped analysts' estimates. In a separate communiqué, the company announced a 38% increase in its quarterly dividend.
The Mentor, Ohio-based company's net income rose to $27.82 million, or $0.47 per share, from $26.11 million, or $0.42 per share, in the year-ago quarter.
On an adjusted basis, net income for the quarter decreased to $28.93 million, or $0.49 per share, from $36.45 million, or $0.59 per share, in the prior year.
Adjusted results excluded pre-tax restructuring charges of $1.8 million related to the third quarter 2009 cost reduction program. The prior-year quarter's adjusted results exclude pre-tax restructuring charges of $16.5 million associated with the 2008 cost reduction program.
On average, five analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly revenues declined 8% to $344.37 million from $375.17 million in the comparable quarter last year, and came in below analysts' estimate of $351.75 million. On a constant currency basis, revenues decreased 5%.
On a segmental basis, Healthcare's revenues for the quarter were $249.19 million, down 6% from $264.25 million. Revenues for Life Sciences dropped 20%to $58.72 million from $73.02 million in the prior-year quarter.
Steris Isomedix Services' revenues fell 4% to $34.17 million from $35.74 million in the comparable quarter a year ago. Quarterly Corporate and other revenues amounted to $2.29 million, up from $2.17 million last year.
For the full year, net income grew to $110.69 million, or $1.86 per share, from $77.11 million, or $1.20 per share, in the prior year. Full-year revenues were $1.3 billion, up 3% from $1.27 billion a year earlier. On a constant currency basis, revenues grew 4%.
Analysts expected the company to report earnings of $1.82 per share on revenues of $1.31 billion for the year.
Looking forward, the company expects earnings for the full year 2010 to be in the range of $1.80 per share to $2.00 per share. Revenues are projected to be flat to down mid-single digits from fiscal 2009 levels. Analysts currently anticipate the company to earn $1.79 per share on revenue of $1.31 billion.
The company noted that the outlook takes into consideration the average forward exchange rates for the U.S. dollar and key international currencies as of April 2 as well as a slight increase in raw material costs.
Separately, the company announced a 38% increase in its quarterly dividend to $0.11 per common share, payable June 18 to shareholders of record at the close of business on May 21.
STE ended Wednesday's trading at $23.40 on the NYSE.
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