Charges sink Beckman Coulter 2Q profit 31 percent

Biomedical diagnostics instrument maker Beckman Coulter Inc. said Friday its second-quarter profit fell 31 percent, as one-time costs canceled out greater clinical diagnostics revenue.

Beckman posted a profit of $47.8 million, or 74 cents per share, compared with $69.4 million, or $1.09 per share, a year ago. Revenue grew 16 percent, to $798.3 million from $689.7 million due to stronger results from the clinical diagnostics business and overseas sales.

Recurring clinical diagnostics revenue rose 14 percent, and Beckman's total product revenue grew 16 percent to $680.7 million. In constant currency, overseas sales grew 14.5 percent, including growth of more than 30 percent in China and solid results from emerging markets. U.S. revenue increased 8.2 percent in constant currency.

The results included a number of one-time costs, including $4.7 million in restructuring expenses, a $12 million research and development charge from an agreement with Siemens Healthcare Diagnostics and a $1 million inventory charge. Without those costs, the company said its profit rose to $90.7 million, or 89 cents per share.

Those costs are generally excluded from analyst estimates, and according to Thomson Financial, analysts had expected Beckman to report a profit of 87 cents per share in profit and $756 million in revenue.

Beckman is developing a test for the hepatitis C virus that will be used on diagnostic equipment that Siemens is developing.

The company maintained its full-year forecast, calling for a profit of $3.55 to $3.65 per share, and raised the low end of its revenue forecast.

In 2007, Beckman Coulter tried to buy medical testing products maker Biosite Inc. Biosite accepted an offer from Beckman, but ultimately accepted a higher bid from Inverness Medical Innovations Inc. Biosite paid Beckman $40.6 million to end their deal, which increased the company's second-quarter profit in 2007.

Stripping out that gain, as well as a $1.2 million benefit from the sale of vacant land in Hialeah, Fla., this year, the company said its profit increased 16 percent.

In morning trading, the stock rose $2, or 2.9 percent, to $71.85.