Perrigo 3Q net income falls on costs from deals

ALLEGAN, Mich. (AP) -- Perrigo Co. said Tuesday that its net income slipped 3 percent in the fiscal third quarter on costs related to two acquisitions. But its earnings and revenue missed Wall Street expectations, and its shares fell almost 4 percent. The healthcare and nutritional products company expanded into animal care in 2012 by buying Sergeant's Pet Care Products for $285 million. In February it bought Rosemont Pharmaceuticals for $283 million in a deal intended to expand its U.K. business. Perrigo said its net income fell to $111.9 million, or $1.18 per share, for the three months ended March 30 from $115.7 million, or $1.23 per share. The company said it earned $1.42 in the latest quarter if one-time items are excluded. Analysts surveyed by FactSet expected higher earnings of $1.44 per share, Revenue rose 18 percent to $919.8 million from $778 million. Analysts expected $933.3 million in revenue. Perrigo said most of the revenue gains came from the newly-acquired Sergeant and Rosemont. The company said revenue from its consumer health care business advanced 20 percent to $536.7 million. Nutritional product revenue rose 13 percent to $133.3 million and prescription drug revenue grew 22 percent to $189.4 million. Drug ingredient revenue increased 11 percent to $41.1 million. Perrigo maintained its full-year forecast, calling for adjusted net income of $5.53 to $5.73 per share. Analysts expect $5.64 per share on average. Published: Thu, May 9, 2013