C.R. Bard Says '09 Double-Digit Sales Growth May Be At Risk
April 22 2009 - 5:42PM
Dow Jones News
C.R. Bard Inc.'s (BCR) goal of posting double-digit sales growth
this year may be at risk following a sluggish first quarter,
although the company is working to protect its 14% per-share
earnings growth target, Bard's top official said Wednesday.
Bard makes medical products for the vascular, urologic and
cancer-treatment fields. The company hummed along through the
fourth quarter without feeling much of an economic hit, even though
a slowdown in medical procedures and cutbacks in hospital budgets
have hurt the sector.
But these issues caught up in the first quarter, and Bard is
concerned soft demand could continue to weigh on results, Chief
Executive Timothy M. Ring said on a conference call.
C.R. Bard shares traded down 4.7% to $73.99 in after-hours
trading.
The company is targeting sales growth in a 7% to 10% range in
the second quarter, excluding the unfavorable impact of currency
rates, Chief Financial Officer Todd C. Schermerhorn added. Ring
commented earlier that predicting sales growth has become
difficult, but that the double-digit growth goal is at risk by one
to three percentage points this year.
The company also announced restructuring moves on Wednesday
aimed at improving efficiency and reducing expenses, and Ring said
the company is "very active in insulating" the 14%
earnings-per-share growth target.
He also said earnings this year are likely to be more "back
ended" than usual.
Schermerhorn said Bard is targeting per-share earnings of $1.18
to $1.22 a share in the second quarter, excluding any unusual
items. Unfavorable currency comparisons are likely to get tougher
in the second quarter, he said.
Analysts surveyed by Thomson Reuters had targeted, on average,
second-quarter earnings of $1.26.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com