US-Israeli over-the-counter drug maker Perrigo Company (Nasdaq:PRGO; TASE:PRGO) today published its financial report for its second fiscal quarter. Despite record quarterly sales figures, the company lowered its guidance for the 2009 fiscal year ending in June.
The share fell 15.8% in early trading on Nasdaq to $22.49 and fell 9.7% on the TASE.
Perrigo reported $561.5 million in net sales for its second fiscal quarter, up 29% of the corresponding quarter of 2008. However, net profit fell 27% to $25 million ($0.27 per share) from $34.3 million for the corresponding quarter. Non-GAAP net profit was $42.7 million ($0.46 per share), $0.04 below the analysts' consensus.
Perrigo reported a $15.1 million write down on auction rate securities purchased in Israel from Lehman Brothers. The assets' face value is $18 million, but their market has been illiquid for over 12 months, and the credit worthiness of underlying issuers has continued to deteriorate significantly.
Perrigo chairman and CEO Joseph Papa said, "Despite an unprecedented negative economic environment, we have grown our business and expect to continue to do so. But we are not immune to the effects of this economy. The API market is changing rapidly as our customers consolidate and manage their own costs, changing the timing of new product development activities. The requirement to recognize a loss on the assets that fund our Israeli post-employment obligations was an unexpected result of global financial distress."
Papa cut Perrigo's reported earnings per share to $1.55-1.70 and its adjusted earnings per share of $1.75-1.90 in fiscal year 2009, amounting 11-20% growth compared with the 2008 fiscal, down from the previous guidance of $1.92-2.00 per share. The analysts' consensus is $1.95.
Published by Globes [online], Israel business news - www.globes-online.com - on February 3, 2009
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