Steris' Q4 results top Wall Street, shares rise

Wed May 7, 2008 11:05pm BST
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BANGALORE (Reuters) - Sterilization systems maker Steris Corp (STE.N: Quote, Profile, Research) reported a better-than-expected fourth-quarter results, helped by higher revenue in its healthcare and life sciences segments, sending its shares up as much as 12 percent.

"Earnings were driven by the successful transition in manufacturing to the lower-cost Monterrey facility, which is now operating well, and improved volume," analyst Elliott Schlang of Soleil Securities said in an e-mail.

The company said production was up 40 percent sequentially in the Monterrey facility in Mexico, where it was transferred from Erie in the United States.

Revenue in its healthcare segment rose 5 percent to $264.2 million, driven by order growth and improved pricing, and revenue in the life sciences segment rose 20 percent to $73 million, helped by strong shipment levels.

Steris said net income was $26.1 million, or 42 cents a share, compared with $29.8 million, or 45 cents a share, a year earlier.

Excluding restructuring charges, the company earned 59 cents a share, for the quarter ended March 31, compared with 47 cents a share a year ago.

Revenue rose 7 percent to $375.2 million.

Analysts were expecting a profit of 50 cents a share, excluding items, on revenue of $361.4 million, according to Reuters Estimates.

Steris said it expects to earn $1.50 to $1.65 a share, on revenue growth of 4 percent to 6 percent in fiscal 2009. It posted revenue of $1.27 billion in fiscal 2008.  Continued...

 

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