Bausch&Lomb Expects Third-Quarter Better-Than-Expected Earnings

Bausch & Lomb indicated that the better-than-expected performance in the quarter was driven primarily by strong revenue increases. The company expects to report total actual dollar sales increases in excess of 10 percent versus the year-ago quarter. The expected results for the current quarter are before the impact of restructuring charges and asset write-offs associated with the profitability improvement plan announced by the Company in July of this year.

The company originally projected these charges to total up to $20 million before taxes. They are now projected to range between $25 million and $27 million before taxes. The increase is due primarily to additional severance and asset write-offs associated with the relocation of manufacturing for PureVision contact lenses to Ireland following a legal ruling in the United States.

The company previously indicated that it expected to issue additional debt during the third quarter under its current shelf registration. The company has not proceeded with that plan since it has more than adequate liquidity to meet its needs for the foreseeable future, with free cash flow running well ahead of projections, and market conditions are less than favorable for corporate debt at this time. The company indicated it will go to market when conditions improve.

(Source: APBiscom)