Mead Johnson says 3Q profit fell, narrows forecast

Mead Johnson says profit declined as North America and European sales dropped 17 percent

• On 11:24 am EDT, Thursday October 22, 2009

GLENVIEW, Ill. (AP) -- Children's nutritional product maker Mead Johnson Nutrition Co. said Thursday its profit slid 5 percent in the third quarter due to slumping sales in North America and Europe.

The company's profit decreased to $97.6 million from $102.7 million. Because the company completed its initial public offering in February and now has more stock available, its per-share profit fell 21 percent to 48 cents from 61 cents. Excluding one-time costs and benefits, Mead Johnson said it earned 53 cents per share. Revenue declined 6 percent, to $699.8 million from $742.8 million.

Thomson Reuters says analysts were expecting a profit of 55 cents per share and $736.8 million in revenue.

Mead Johnson said combined Asia and Latin America revenue rose 3 percent to $413.8 million. Revenue in North America and Europe fell 17 percent to $286 million. The company said it raised prices, but lower demand and unfavorable currency exchange rates canceled out the higher prices.

Drugmaker Bristol-Myers Squibb Co. owns about 80 percent of Mead Johnson stock.

The company narrowed its 2009 profit forecast to a range of $2.20 to $2.25 per share, up from $2.15 to $2.25 per share. Analysts expect $2.28 per share. Mead Johnson shares lost $1.01, or 2.3 percent, to $42.64 in morning trading.

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