McGaw Posts Record Profit, Revenue for Quarter : Earnings: Manufacturer of intravenous devices credits the indispensability of its products.

McGaw Inc. on Thursday reported record earnings and revenue for the third quarter, with profit more than tripling to $5.6 million from the same period a year earlier.

Earnings per share were 21 cents, up from 9 cents for the third quarter last year. Revenue increased by 5% to $84.4 million.

The company, which makes and supplies intravenous solutions and devices, attributed the successful quarter to the indispensability of its product--even at a time when anticipated health-care reform has led hospitals to curtail spending.

“IV therapy products are a basic part of everyday patient care,” McGaw spokesman Lawrence A. Watts said. “They are not optional. That helps us in an environment where health care providers are purchasing conservatively.”

Despite the company’s record showing, its sales for the quarter were “sluggish,” said Vivian Wohl, an analyst with the Robertson Stephens & Co. brokerage in San Francisco. “They were lighter than my estimate,” Wohl said. “But the company did come through with its earnings.”

On July 26, McGaw’s stock fell $2 to $9.25 after the U.S. Department of Veterans Affairs--the company’s largest customer--ruled that its proposal for a renewed $129-million contract was incomplete. However, the government has since temporarily extended the contract pending McGaw’s appeal of the decision. “We’re hoping for a resolution soon,” Watts said.

McGaw’s stock, which trades on the Nasdaq market, closed at $9.75 Thursday, up 25 cents.