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Alcon 3Q Profit Falls On Novartis Deal Costs

From Associated Press (October 20, 2010)

NEW YORK -- Alcon Inc., which makes treatments for glaucoma and eye infections, said Wednesday its third-quarter net income fell 13 percent on costs related to its majority takeover by fellow Swiss drug maker Novartis SA.

Still the results topped analysts’ expectations and the company raised its outlook for the full year.

Novartis completed its purchase of Nestle SA’s 77 percent stake in the eye care firm in August at a total cost of $38.7 billion.

Alcon said its net income fell to $446 million, or $1.47 per share, from $515 million, or $1.71 per share, in the year-ago period. Excluding charges, the company said it earned $1.84 per share.

Revenue rose 9 percent to $1.76 billion from $1.61 billion, with surgical product revenue rising nearly 4 percent to $767 million and pharmaceutical revenue up 15 percent to $758 million.

Revenue from consumer eye care products such as contact lens solution and eye drops rose 9 percent to $235 million.

The results surpassed the average estimates of analysts polled by Thomson Reuters, who expected net income of $1.75 per share on $1.7 billion in revenue.

Alcon raised its adjusted net income forecast for the full year to between $7.58 and $7.68 per share from prior guidance of $7.45 to $7.62 per share. Analysts expect net income of $7.63 per share, on average.

Shares of Alcon rose $1.36 to close earlier at $168.76.


Posted: October 2010