Mallinckrodt Q2 Net Profit Down, But Lifts View For Full-Year - Quick Facts

(RTTNews) - Mallinckrodt plc (MNK), a maker of specialty pharmaceutical products and medical imaging agents, Thursday reported second-quarter net earnings that decreased sharply amid decline in sales, a environmental remediation charge, transaction costs mainly in in connection with the Cadence acquisition, and higher interest expense and restructuring charges.

The company, however, raised its earnings and revenue outlook for 2014.

Net earnings for the 3-month period plunged to $11.6 million or $0.20 per share, from $34 million or $0.59 per share a year ago.

Second-quarter results included a $23.1 million environmental remediation charge, and $18.5 million of transaction costs primarily associated with our completion of the Cadence acquisition. Interest expense grew to $12.4 million from $0.1 million a year earlier. Restructuring charges increased to $21.7 million from $6.4 million last year.

Excluding certain items, earnings were $56.4 million or $0.95 per share, compared with $57.9 million or $1.00 per share a year earlier.

On average, 9 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.77 for the quarter. Analysts' estimates typically exclude one-time items.

Second-quarter net sales declined to $557.8 million from $585.3 million a year ago.

For fiscal 2014, the company raise its earnings guidance to $3.30 - $3.60 per share from $2.65 - $2.95 per share projected earlier, and revenue guidance to $2.28 billion - $2.38 billion from the previous guidance of $2.2 billion - $2.3 billion.