Allergan Cites Several Factors for 23% Decrease in Net Income

Health-care company Allergan Inc. posted a 23% decline in net income for the first quarter on lower sales.

Allergan, which produces therapeutic eye and skin care products, attributed the decline to expenses for launching new products, the highly competitive eye care business, and foreign currency fluctuations.

Current exchange rates could adversely affect second-quarter and full-year results more than previously estimated, the company warned. Allergan reported in March that it expected first-half earnings to fall as much as 20% below earnings a year earlier.

For the first quarter, net income fell to $17.8 million, or 27 cents a share, from $23.1 million, or 35 cents a share, for the first three months last year. Sales were down 1% to $256.2 million from $258.1 million.

During the first six months last year, Allergan had net income of 80 cents a share, excluding special charges, on sales of $548 million.