3rd-Quarter Profits Rise 7% at Beckman

Despite sluggish domestic and foreign markets, Beckman Instruments Inc. posted third-quarter earnings of $10.3 million, up 7% from the year-earlier period, the company said Monday.

The company’s earnings amounted to 35 cents per share, compared to earnings of $9.6 million, or 33 cents per share, for the period last year.

Sales for the three months ended Sept. 30 were $208.1 million, up slightly from $201 million for the period last year. The company attributed the sales increase to the introduction of a new family of chemical analyzers for testing blood samples in clinics. Beckman officials said third-quarter sales would have been higher had it not been for currency changes. The U.S. dollar had strengthened against many major foreign currencies, reducing sales by 1.7%, the company said.

The Fullerton manufacturer of biological laboratory instruments and supplies said domestic and foreign sales slowed because of reduced funds for research grants and hospital budgets.

Earnings for the nine-month period were $27.7 million, or 95 cents per share, up 6% from $26.2 million, or 91 cents per share, for the period a year earlier. Revenue rose 6% to $624.2 million from $589.4 million.

“1991 has seen a continuation of difficult market conditions for suppliers of research instrumentation,” said Louis Rosso, Beckman chairman, president and chief executive. “However, we believe that Beckman continues to maintain a strong competitive position in both the research and diagnostic markets. Our investment in new products continues to serve us well during a tough 1991.”

For the first nine months of 1991, Beckman invested $60 million in product research and development, compared to $51 million for the period in 1989.

“The real value of the company is in its increased research and development investment, which is producing more marketable products,” said Jeffrey Kilpatrick, president of Newport Securities Corp. in Costa Mesa.

Beckman’s Performance

Beckman Instruments reported a 7% gain in net income for the third quarter, to $10.3 million from $9.6 million; sales rose 4%.

Figures are in millions, except per-share data.

3rd Qtr 3rd Qtr 9 Months 9 Months 1991 1990 1991 1990 Revenue $208.1 $201.0 $624.2 $589.4 Net income (loss) 10.3 9.6 27.7 26.2 Per share (loss) 0.35 0.33 0.95 0.91

Source: Beckman Instruments