Steris 3Q earnings climb 36 percent

Steris 3rd-quarter profit climbs 36 percent, helped by gain from System 1 rebate program

Associated Press

MENTOR, Ohio (AP) -- Steris Corp.'s fiscal second-quarter earnings climbed 36 percent, spurred in part by a revenue bump from a gain tied to a rebate program.

The Mentor, Ohio, company said Wednesday it earned $40.1 million, or 68 cents per share, in the three months that ended Sept. 30. That compares to earnings of $29.6 million, or 50 cents per share, in last year's quarter. Adjusted earnings, which exclude some one-time items, were 53 cents per share.

Revenue climbed 4 percent to $356.3 million.

Analysts surveyed by FactSet expected, on average, earnings of 51 cents per share on $344.4 million in revenue.

The revenue increase included a $20.4 million gain due to the company's System 1 sterilization device rebate program.

In 2009, the Food and Drug Administration said Steris had made major changes to the System 1 device without getting approval. The company paid $19.8 million to settle class action lawsuits, and later took a charge of $110 million to set up a program that allowed clients to trade in the System 1 for the newer System 1E.

Steris also said Wednesday its operating expenses climbed 6 percent to $90.8 million in the quarter.

The company maintained its forecast for fiscal 2013 earnings of $2.15 to $2.35 per share.

Analysts expect earnings of $2.23 per share.

Company shares fell 84 cents, or 2.3 percent, to $35.36 in afternoon trading, while broader indexes were mixed in Wednesday afternoon trading.

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