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B&L Q2 results fall significantly
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ROCHESTER, N.Y. — Bausch
& Lomb (NYSE/BOL) executives said today second quarter earnings shrank 80%.
They blamed the poor showing on sluggish sales in the contact lens and
lens-care solutions businesses.
The company posted earnings of $6.8 million, or $0.13 per share, compared with $34.6 million, or $0.64 a share, in the year-ago quarter. Sales declined 9% to $414 million in the second quarter of 2001 from $455.2 million in the second quarter a year ago.
Revenue in the Americas region fell 26%, but grew in Europe 31% (42% in constant dollars). Revenue in Asia declined 12% (3% after adjusting for currency changes). In the United States, revenues declined 31% and comprised 39% of the company's sales.
Contact lens sales fell 8%, and lens care product sales dropped 26%, both "driven by results in the U.S.," according to executives.
Revenues from products for cataract surgery declined 5% from the year-ago period. Executives said the category was "hampered by disruptions in the supply of certain key products," which they are "taking aggressive action to correct."
Sales of products for refractive surgery slid 19%, again driven by the Americas region. Outside North America, however, refractive surgery product sales "were up sharply in local currency." One cause, say executives, is "continued strong demand for the company's Zyoptix system."
On the up side, pharmaceutical sales increased 22% from the year-ago period.
The company also announced William Waltrip would return as chairman of the board, replacing chief executive officer William Carpenter, who drops the chairman title but remains CEO. Mr. Waltrip said it "makes sense" for Mr. Carpenter to "focus on dealing with current operating issues."
While Bausch & Lomb expects reported sales and earnings to "strengthen significantly" in the second half of 2001, "the current volatility of the markets for a number of its key products makes it particularly difficult for the company to set more specific expectations for the rest of the year," Mr. Waltrip said.