DOW JONES NEWSWIRES
Alcon Inc.'s (ACL) third-quarter profit dropped 18% as foreign-exchange rates took a toll, but the eye-care products giant again raised its 2009 guidance on an improving market.
Shares climbed 3.8% to $149 in after-hours trading as the results topped Wall Street's expectations. The stock, which reached its 52-week high earlier this month, has more than doubled from a four-year low last November.
Alcon now expects 2009 earnings of $6.60 to $6.70 a share. In July, it raised its guidance to earnings of $6.25 to $6.40 a share. The company again backed its forecast of organic sales growth in the mid-single digits.
"We continue to achieve organic sales growth and market share growth with contributions from multiple areas, but especially from advanced technology intraocular lenses, glaucoma treatments and emerging markets," said Chief Executive Kevin Buehler, who took over that post last spring.
Alcon makes eye drugs, lens solutions and surgical products--all items that tend to sell well despite tough economic times. Food company Nestle SA (NSRGY, NESN.VX) plans to sell its remaining 52% stake in Alcon to Swiss drug maker Novartis AG (NVS, NOVN.VX) next year after Novartis in July paid $10.4 billion for a 25% stake. Last month, Alcon acquired ESBATech AG, a Swiss biotechnology company, for $150 million in cash at closing, plus contingent payments of up to $439 million.
For the latest quarter, Alcon reported a profit of $515 million, or $1.71 a share, down from $627 million, or $2.07 a share, a year earlier.
The latest results included a $240 million tax benefit. The prior-year quarter included a $239.5 million tax benefit related to investment losses in the former Summit Autonomous Inc.
Revenue rose 5.9% to $1.61 billion. Excluding effects of acquisitions and foreign-currency exchange, organic sales grew 9%.
Analysts' estimates were for per-share earnings of $1.45 on revenue of $1.54 billion, according to a poll by Thomson Reuters.
Gross margin fell to 75.3% from 77.2% on foreign-exchange rates.
Sales of surgical products increased 6.8% while revenue from pharmaceutical products climbed 8.2%.
International sales grew 4.5%, or 10% in organic sales, as U.S. sales rose 7.6%.
Sales of advanced technology intraocular lenses climbed 34% and glaucoma sales increased 18%.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com