Tenet Healthcare Sees 4Q Net, Announces $1.6 Billion Tender
January 22 2009 - 7:16AM
Dow Jones News
DOW JONES NEWSWIRES
Tenet Healthcare Corp. (THC) sees a surprise fourth-quarter
profit as it announced a $1.6 billion tender offer for outstanding
notes, while the hospital operator said it would not confirm its
2009 forecast amid the uncertainty facing healthcare providers.
Tenet, which has been trying to reverse its fortunes after years
of financial and legal trouble, said it would update its forecast
when fourth-quarter results are released in late February.
In order to improve its financial flexibility, it it enacting
more than $100 million in cost savings this year and launching the
exchange of notes due 2011 and 2012 for the same amount of notes
due 2014 and 2019.
Hospitals have been cutting back on capital spending in recent
months, looking to save cash where possible like many businesses
during the ongoing recession.
Meanwhile, Tenet projected fourth-quarter net income of $63
million amid same-hospital declines of 0.2% and 0.3%, respectively,
for admissions and outpatient visits. Analysts surveyed by Thomson
Reuters projected a net loss of $16.8 million.
Shares closed Wednesday's session at $1.24 and were not active
premarket. The stock is down 80% the past four months.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
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