Chattem 3Q profit up on sales boost, lower costs

Chattem's 3rd-quarter profit rises, helped by sales of Gold Bond skin care creams

• On 8:20 am EDT, Tuesday October 6, 2009

CHATTANOOGA, Tenn. (AP) -- Consumer products maker Chattem Inc. said Tuesday its third-quarter profit rose 17 percent on a mix of higher revenue from products including Gold Bond skin care creams, along with lower costs.

Chattem earned $23.4 million, or $1.22 per share, for the quarter ended Aug. 31., compared with profit of $14 million, or 73 cents per share, a year earlier. Revenue grew 3 percent to $115.2 million from $111.9 million.

Analysts polled by Thomson Reuters expected profit of $1.21 per share on $116.7 million in revenue.

The company said domestic sales grew 3.5 percent to $108.6 million, due to greater sales of Gold Bond, ACT and Icy Hot products. Meanwhile, costs and expenses fell 14 percent to $72.9 million.

Chattem maintained its outlook, calling for an adjusted profit of $4.80 to $4.90 per share for the fiscal year ending in November. Analysts forecast $4.54 per share.

In premarket trading, Chattem gained $1.94, or 3.1 percent, to $65.