Allergan Inc.'s (AGN) third-quarter profit rose 8% on higher
sales and margins at the eye- and skin-care products company.
The maker of Botox and the nation's largest seller of medical
products for appearance-enhancement treatments raised its 2009
outlook and forecast stronger-than-expected results this
quarter.
It now expects 2009 earnings, excluding items, of $2.75 a share
to $2.77 a share and product net sales of $4.35 billion to $4.4
billion. The company in July narrowed projections to earnings of
$2.71 to $2.75 and product sales of $4.2 billion to $4.3
billion.
Allergan also forecast fourth-quarter income of 75 cents to 77
cents a share on product sales of $1.11 billion and $1.16 billion.
Analysts surveyed by Thomson Reuters were projecting a 75-cent
profit and total revenue of $1.1 billion.
Makers of aesthetic medical treatments have felt pressure from
the weak economy as customers trim cosmetic procedures from their
budgets, prompting Allergen to cut 5% of its work force. But the
company has been able to report growth despite the operating
environment.
Allergan said third-quarter earnings rose to $179.2 million, or
58 cents a share, from $166 million, or 54 cents a share, a year
earlier. Excluding restructuring and other impacts, profit rose to
70 cents a share from 65 cents.
Product net sales increased 4.2% to $1.13 billion, but grew 7%
in constant currencies.
In July, Allergan forecast weaker-than-expected earnings,
excluding items, of 67 cents to 69 cents a share, on product sales
of $1.05 billion to $1.1 billion.
Excluding charges, operating margin rose to 27.4% from 26.6% on
lower costs.
Pharmaceutical sales rose 7.8% while medical-device revenue fell
11%. Both were impacted by three percentage points by currency
changes.
Botox sales rose 3%. Early this month, Allergan filed a lawsuit
against federal health officials asserting that the government had
violated its free-speech rights by barring the company from
offering information about the unapproved use of Botox and other
products.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com