DOW JONES NEWSWIRES
Alcon Inc.'s (ACL) third-quarter profit dropped 18% as
foreign-exchange rates took a toll, but the eye-care products giant
again raised its 2009 guidance on an improving market.
Shares climbed 3.8% to $149 in after-hours trading as the
results topped Wall Street's expectations. The stock, which reached
its 52-week high earlier this month, has more than doubled from a
four-year low last November.
Alcon now expects 2009 earnings of $6.60 to $6.70 a share. In
July, it raised its guidance to earnings of $6.25 to $6.40 a share.
The company again backed its forecast of organic sales growth in
the mid-single digits.
"We continue to achieve organic sales growth and market share
growth with contributions from multiple areas, but especially from
advanced technology intraocular lenses, glaucoma treatments and
emerging markets," said Chief Executive Kevin Buehler, who took
over that post last spring.
Alcon makes eye drugs, lens solutions and surgical products--all
items that tend to sell well despite tough economic times. Food
company Nestle SA (NSRGY, NESN.VX) plans to sell its remaining 52%
stake in Alcon to Swiss drug maker Novartis AG (NVS, NOVN.VX) next
year after Novartis in July paid $10.4 billion for a 25% stake.
Last month, Alcon acquired ESBATech AG, a Swiss biotechnology
company, for $150 million in cash at closing, plus contingent
payments of up to $439 million.
For the latest quarter, Alcon reported a profit of $515 million,
or $1.71 a share, down from $627 million, or $2.07 a share, a year
earlier.
The latest results included a $240 million tax benefit. The
prior-year quarter included a $239.5 million tax benefit related to
investment losses in the former Summit Autonomous Inc.
Revenue rose 5.9% to $1.61 billion. Excluding effects of
acquisitions and foreign-currency exchange, organic sales grew
9%.
Analysts' estimates were for per-share earnings of $1.45 on
revenue of $1.54 billion, according to a poll by Thomson
Reuters.
Gross margin fell to 75.3% from 77.2% on foreign-exchange
rates.
Sales of surgical products increased 6.8% while revenue from
pharmaceutical products climbed 8.2%.
International sales grew 4.5%, or 10% in organic sales, as U.S.
sales rose 7.6%.
Sales of advanced technology intraocular lenses climbed 34% and
glaucoma sales increased 18%.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com