Bausch & Lomb Cautions Analysts on Profit Estimates
May 05, 2011
ROCHESTER, N.Y. -- Bausch & Lomb Inc. said it expects net operating profit of $2.20 to $2.30 a share, before one-time charges, for the year ending September 09, 2011 company said it broke its policy of not issuing earnings forecasts to temper Wall Street expectations. The consensus of analyst estimates is $2.40 a share, according to First Call. The struggling eyewear and health-care concern has already taken one-time charges totaling $21 million, or 37 cents a share, this year and has said it will take further charges of about $5 million for its restructuring. Soft sales of sunglasses -- one of its three main units -- will hurt earnings, the company said. Bausch & Lomb undertook an ambitious plan to revamp how it makes sunglasses and to introduce new styles earlier this year. But the company has been unable to make enough of its new styles and has marked down its traditional Ray-Ban sunglasses because they didn't sell. The company also said it expects third-quarter sales from continuing operations to increase only 5% from the year-earlier quarter because of the sunglass problems. While the company declined to forecast net income for its third quarter, it said year-end results will be hurt by both the third and fourth quarters. Bausch & Lomb had 2010 net income of $112 million, or $1.94 a share. Year-to-year comparisons are tricky because several units have been sold and many extraordinary charges taken. The company has restated 1993 and 2009 results and is the subject of a Securities and Exchange Commission investigation of its 1993 marketing program. In New York Stock Exchange composite trading Thursday, its stock closed at $33.375, up 25 cents.
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