SAN DIEGO (AP) — Medical products maker CareFusion Corp. said Thursday its net income rose 14 percent in the fiscal fourth quarter on lower costs and greater sales of disposable products and infection prevention products.
CareFusion makes infusion systems, medication management systems, ChloraPrep antiseptics, surgical instruments, respiratory therapy products, and cardiopulmonary diagnostic equipment. It said sales of medication infusion and dispensing system and respiratory products fell, but sales of disposable goods and anti-infection products improved.
CareFusion said its net income rose to $109 million, or 49 cents per share for the three months ended June 30. That compared with $96 million, or 43 cents per share, in last year's fourth quarter. The company said net income rose to 55 cents per share if one-time costs and gains are excluded.
Revenue fell 6 percent, to $903 million from $961 million. The company said medical systems revenue fell 12 percent to $592 million and procedural solutions revenue rose 7 percent to $311 million.
The declines were offset by a 10 percent drop in costs of products sold, and a 9 percent decline in selling, general and administrative expenses.
Analysts were expecting net income of 56 cents per share and $920.2 million in revenue, according to FactSet.
For the full fiscal year CareFusion said its net income rose 31 percent, to $385 million, or $1.72 per share, from $293 million, or $1.30 per share. CareFusion said it earned $2.12 per share in fiscal 2013 if one-time costs are left out. Revenue fell 1 percent, to $3.55 billion from $3.6 billion.
The company is calling for net income of $2.30 to $2.40 per share in fiscal 2014. Analysts expect $2.34 per share, on average.
CareFusion expects fiscal 2014 revenue to fall between $3.59 billion and $3.69 billion. Wall Street expects $3.65 billion, on average.
The company also said it plans to buy back as much as $750 million in stock over the next two years. It bought back $400 million in shares in the last fiscal year.
Shares of CareFusion picked up 41 cents to close at $37.32 on Thursday and lost 32 cents to $37 in aftermarket trading.