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Foreign Sales Help Allergan Boost Profits : Earnings: Second-quarter 8% increase is achieved despite $3.9 million in realignment costs. Company makes eye- and skin-care products.

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TIMES STAFF WRITER

Buoyed by growing international sales, Allergan Inc. on Tuesday reported second-quarter earnings that were up 8%, to $18.5 million, from $17.1 million a year earlier.

The earnings increase came despite $3.9 million in costs related to an organizational realignment started in January, Chairman Gavin S. Herbert said.

Allergan, which manufactures eye- and skin-care products, said international sales accounted for 51% of its sales, compared to 46% in the same period last year.

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“Our international sales rose because of increased penetration of foreign markets,” said Shel Holtz, a company spokesman.

Revenue for the three months ended June 30 rose 2% to $225.8 million from $221.2 million a year ago. Earnings per share were 27 cents, versus 25 cents in the same period last year.

Allergan stock closed unchanged Tuesday at $18.75 per share in New York Stock Exchange trading.

Among its various products, Allergan said its skin care products had the biggest sales gain during the quarter, up 22% to $11.2 million from $9.2 million a year earlier.

Sales for its pharmaceutical and surgical products rose 4.5% to $101.9 million, compared to $97.5 million last year. Allergan also reported a slight decline in sales for its optical and diagnostic instruments, down to $112.7 million from $114.5 million.

For the six-month period, earnings were $34.2 million, up 11% from $30.7 million last year. Revenue rose 5% to $437.6 million from $416.3 million.

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On Tuesday, Allergan also broke ground for a $40-million research and development facility at the site of its Irvine headquarters.

“This new facility is a key component in our overall growth strategy,” Herbert said in a statement. “It will provide state-of-the-art resources for a significantly expanded team of Allergan scientists.”

The new facility will help the company’s scientists develop a greater number of new products more efficiently, he said, as well as retain and attract top scientists.

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