LIONVILLE, Pa. (AP) — Medical products maker West Pharmaceutical
Services Inc. said its profit fell 71 percent in the fourth quarter on expenses
related to job cuts, a facility closing, and other items related to its
cost-cutting plan.
West said its profit fell to $5.9 million, or 18 cents per
share, from $20.3 million, or 59 cents per share. In December the company said
it would eliminate 320 jobs, close a molded plastics facility in Pennsylvania, and reduce
operations at a facility in the U.K. Excluding those costs and a $1.1 million
tax benefit, West said it earned 42 cents per share in the fourth quarter. Its
revenue decreased 6 percent, to $276.8 million from $293.4 million.
Analysts were expecting a profit of 47 cents per share and
$272.3 million in revenue, according to FactSet.
The company said pharmaceutical packaging system revenue
fell 12 percent to $193.7 million because of the milder flu season, and lack of
swine flu. Some of its customers also pushed back their orders to early 2011. Pharmaceutical
delivery system revenue climbed 12 percent to $84.2 million as demand for
contract manufacturing and proprietary products increased. Unfavorable foreign
exchange rates also hurt West’s results.
West said its profit shrank 10 percent in 2010, slipping to
$65.3 million, or $1.89 per share, from $72.6 million, or $2.12 per share. Its
revenue grew 5 percent, to $1.1 billion from $1.06 billion.
In 2011 the company expects a profit of $2.25 to $2.45 per
share, excluding one-time items. It said revenue will grow between 3 and 6
percent, which suggests a total of $1.14 billion to $1.17 billion. Analysts are
forecasting a profit of $2.44 per share and $1.16 billion in revenue.
