Medical device maker CareFusion Corp. said Thursday its profit increased 9 percent in the fiscal second quarter as cost cuts offset a decline in sales.
The company said its profit rose to $76 million, or 34 cents per share, from $70 million, or 32 cents per share. Excluding items like restructuring and integration costs and expenses related to the company's spinoff from Cardinal Health Inc., CareFusion said its profit totaled 44 cents per share. Revenue slipped 2 percent to $1 billion from $1.02 billion.
Analysts had expected a profit of 37 cents per share and $1.01 billion in revenue, according to data compiled by FactSet. Analyst estimates usually exclude one-time items.
CareFusion said revenue from its critical care technologies business edged up to $684 million from $682 million, as infusion pump sales and dispensing sales grew. Respiratory product sales fell because last year's results got a boost from the swine flu outbreak. Medical technology and service revenue slipped 6 percent to $318 million. Sales at the company's international surgical products business decreased, and the company sold off its research services business in May 2010.
The company cut its profit and revenue estimates for the current fiscal year, citing the sale of two businesses and delays in some infusion pump sales. Frazier Healthcare agreed to buy CareFusion's OnSite instrument management and repair business in January, and on Thursday, the company agreed to sell its international surgical products business to Medline Industries for $130 million.
Terms of the OnSite sale were not disclosed.
In the fiscal year ending June 30, CareFusion now expects to earn $1.58 to $1.65 per share. It said revenue will grow in the low single digits from its fiscal 2010 total of $3.93 billion. The new forecast includes a loss of about 7 cents per share from the sale of the two businesses. Previously CareFusion forecast a profit of $1.58 to $1.68 per share and said revenue would grow in the mid-single digits.
Analysts expect a profit of $1.61 per share and $4.07 billion in revenue on average. That suggests revenue growth of almost 4 percent.
Shares of CareFusion rose 52 cents, or 2 percent, to close at $26.69.