Waters Corp.'s (WAT) third-quarter profit rose 6.1% amid
prior-year charges while falling sales were more than offset by
lower costs.
Results topped analysts' expectations, and Chairman and Chief
Executive Douglas Berthiaume said markets showed signs of
stabilization during the quarter. He also called customer interest
in new products "encouraging."
The medical-equipment industry typically has been rather
resilient in a recession. But sales have slowed industrywide, with
hospitals and universities cutting purchases of routine supplies as
cuts to research and capital-spending budgets have been
crimped.
Waters reported a profit of $75.9 million, or 79 cents a share,
up from $71.5 million, or 71 cents a share, a year earlier.
Excluding acquisition and other costs, profit rose to 81 cents from
79 cents.
Sales fell 3.2% to $374 million, with one-third of the drop due
to currency changes.
Analysts, on average, were looking for income of 77 cents on
revenue of $364 million, according to a survey by Thomson
Reuters.
Gross margin was flat at 59%. Overhead costs dropped 4.5% while
interest costs slumped 54% and income-tax provisions fell 18%.
The company's shares closed Monday at $56.32 and were inactive
premarket. The stock is up 49% the past year.
-By Jenny Park and Kevin Kingsbury, Dow Jones Newswires;
212-416-2354; jenny.park@dowjones.com