clock menu more-arrow no yes

Filed under:

Utah-linked firms post results for quarter

Several companies based in Utah or with operations in the state announced quarterly financial results Tuesday.

Utah Medical Products

Utah Medical Products Inc. reported net income of $1.8 million, or 39 cents per share, for the third quarter. That compares with $1.9 million, or 38 cents per share, for the prior-year quarter.

The Midvale-based company said net sales totaled $6.7 million, down from $6.8 million a year earlier.

For the first nine months of 2004, the company had net income of $8.8 million, or $1.85 per share, which included $3.5 million, or 70 cents per share, of Tyco patent infringement damages. That compares with $5.5 million, or $1.13 per share, for the year-earlier period. Net sales totaled $20.1 million, down from $20.5 million for the first nine months of 2003.

The company responded to an Aug. 10 press release from the U.S. Food and Drug Administration by instituting a 10 percent discount from its regular U.S. hospital prices. Without that, third-quarter sales were 1 percent higher than the year-ago quarter.

The Aug. 10 announcement said the FDA would try to stop the company from manufacturing and distributing medical devices due to alleged "significant violations" in the company's quality system regulations. The FDA filed a request for a permanent injunction, saying its actions were the result of an inspection of the company earlier this year in which the agency determined that the methods and controls Utah Medical used in the manufacturing, packing and storing of medical devices were "not in compliance with good manufacturing practice."

"We're pleased with third-quarter sales results after the unjustified shock that UTMD customers received from the Aug. 10 FDA press release," chief executive officer Kevin Cornwell said in a prepared statement. "I believe that (third quarter) sales results validate the high confidence that users have in our safe and effective specialty products."

The company said the $152,700 impact of the discount was "more pronounced" on gross profits than on sales. Without the discount, third-quarter gross profit margins would have been 57.6 percent and gross profits would have been 4 percent higher, it said.

"The negative impact of the discount on third quarter profits could have been larger," Cornwell said.

"Of course, the 10 percent discount for domestic direct hospital sales was effective for about half" of the third quarter, he said. "If the discount continues for a full quarter, the negative financial impact on (the fourth quarter of) 2004 will be more substantial."

The company, which makes disposable and reusable specialty medical devices, saw its stock price climb 23 cents Tuesday to close at $17.92 per share. During the past year, the price has ranged from $16.02 to $27.19.

Usana

Salt Lake-based Usana Health Sciences Inc. reported net earnings of $8 million, or 39 cents per share, for the quarter ended Oct. 2. That compares with $6.1 million, or 28 cents per share, for the year-earlier quarter.

The earnings per share for the most recent quarter topped the consensus expectation of Wall Street analysts by a penny.

Net sales were a company-record $68.7 million, up from $52.5 million in the 2003 third quarter.

The company said its total number of active associates in the quarter was 111,000, up 27.6 percent from a year ago.

For the first nine months of 2004, the company reported net earnings of $21.6 million, or $1.05 per share, on net sales of $197.7 million. That compares with earnings of $14 million, or 66 cents per share, on sales of $140.5 million in the first nine months of 2003.

The company said it expects net sales for the full year to be nearly $270 million and earnings per share to be as high as $1.46. It added that net sales in 2005 are expected to grow between 15 percent and 18 percent and earnings per share to grow 20 percent to 25 percent, excluding any sales from its potential entry into the China market.

Usana develops and manufactures direct-sales nutritional and personal-care products. Its stock fell 52 cents Tuesday to close at $32.91 per share. During the past year, the price has ranged from $22.89 to $39.49.

Wells Fargo

Wells Fargo & Co.'s profit rose by 12 percent, but the results didn't live up to analysts' expectations as the home mortgage refinancing boom cooled off.

The San Francisco-based company said Tuesday that it earned $1.74 billion, or $1.02 per share, during the July-September period compared with $1.56 billion, or 92 cents per share, a year earlier.

Although the results extended a 12-quarter streak of double-digit earnings growth for Wells, Wall Street had set its sights higher. The mean analyst estimate was $1.06 per share, according to Thomson First Call.

Wells' shares dropped 80 cents Tuesday to close at $59.35 on the New York Stock Exchange.

The bank's revenue for the third quarter totaled $7.32 billion, down a notch from $7.33 billion a year earlier.

Sento

American Fork-based Sento Corp. reported a net loss attributable to shareholders of $554,889, or 15 cents per share, for the second fiscal quarter ended Sept. 30. That compares with a loss of $477,906, or 21 cents per share, for the same quarter a year ago.

Revenues totaled $6.2 million, up from $4.1 million a year ago.

For the first six months of the fiscal year, the company reported a net loss attributable to shareholders of $747,434, or 20 cents per share, on revenues of $12.7 million. That compares with a loss of more than $1 million, or 46 cents per share, on revenues of $8.2 million for the year-earlier period.

Sento provides outsourced customer care and sales support services. Its stock rose 9 cents Tuesday to close at $5.84 per share. During the past year, the price has ranged from $3.03 to $17.89.

Parker Hannifin

Cleveland-based Parker Hannifin Corp., a maker of industrial and aerospace systems and products, more than doubled its earnings in the first quarter, due in part to strong North American sales, the company said Tuesday.

The company earned $132.8 million, or $1.11 per share, for the three-month period completed Sept. 30, compared with year-ago period earnings of $56.7 million, or 48 cents per share.

Analysts surveyed by Thomson First Call expected Parker Hannifin to earn 83 cents per share in the quarter. Earnings were reduced by 7 cents per share for an investment write-down and a one-time pension plan adjustment.

Shares of Parker Hannifin rose $5.12, or 8 percent, to close at $68.53 Tuesday on the New York Stock Exchange.

The company's Ogden facility manufactures hydraulic systems for commercial aircraft.

Boise Cascade

A reduced forecast for Boise Cascade Corp.'s office product business overshadowed better-than-expected third quarter results on Tuesday, sending the company's stock down 11 percent.

The decline came just weeks before the Boise-based company expects to close a $3.7 billion deal that will transform it into an office supply business, and take it out of the timber and paper business.

For the three months ending Sept. 30, Boise Cascade posted a profit of $61.1 million, or 63 cents per share. That compared to a profit of $30 million, or 43 cents a share, a year ago.

Sales surged more than 70 percent to $3.65 billion from $2.11 billion the year before, primarily due to last December's acquisition of OfficeMax Inc., the nation's third-largest office products supplier.


Contributing: The Associated Press