WILMINGTON, Mass. (AP) -- Medical research equipment and services provider Charles River Laboratories International Inc. said Tuesday its net income fell 6 percent in the second quarter as unfavorable foreign currency exchange rates cut into its revenue.
Charles River Labs said its revenue fell because foreign currencies lost strength relative to the dollar. The company also lowered its annual revenue guidance because of those same exchange rates. The company expects a bigger annual profit than it did earlier this year, but now says its revenue could fall as much as 1 percent from 2011.
Charles River said its net income slipped to $30.5 million from $32.3 million a year ago. The company has bought back about 3.3 million shares of its stock over the last year, and because it has less stock remaining on the market, its per-share profit was unchanged at 63 cents. If impairment charges, debt accounting, and other one-time costs are excluded, the company earned 75 cents per share.
Its revenue declined 1 percent, to $284.7 million from $288.3 million.
Analysts were forecasting adjusted net income of 66 cents per share and $286.4 million in revenue, according to FactSet.
The company said revenue from its research models and services business fell 3 percent to $173.6 million. Revenue from its preclinical service revenue rose 1 percent to $111.1 million after Charles River entered a partnership with an unspecified global pharmaceutical company in late 2011.
Charles River Labs is now forecasting adjusted net income of $2.63 to $2.73 per share, up from its previous estimate of $2.60 to $2.70 per share. However it now thinks its revenue could grow 1 percent or fall 1 percent, which implies totals of $1.13 billion to $1.15 billion. As recently as May, the company said its revenue would be no worse than equal to its 2011 total of $1.14 billion and could grow as much as 2 percent to $1.17 billion.
The company now thinks foreign currency exchange rates will reduce its revenue by 2 percent instead of 1 percent.
Analysts were expecting income of $2.68 per share and $1.15 billion in revenue on average.
Shares of Charles River Labs fell 26 cents to $35.60 on Tuesday. The stock lost 2 cents to $35.58 in after-hours trading.