Charges Drag Down Earnings at Health Net
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Health insurer Health Net Inc. said its fourth-quarter profit fell as it took charges to write down the value of obsolete software and an investment in another company.
Health Net, one of California’s biggest managed-care firms, said Wednesday evening that quarterly net income slid to $45 million, or 36 cents a share, compared with $56 million, or 45 cents, a year ago.
Excluding charges, the Woodland Hills-based company earned 60 cents a share, matching the average estimate of analysts polled by Thomson First Call.
In January, Health Net warned it would take a $48-million charge for investment write-downs and said it expected to earn 36 cents a share after the charge.
The company’s fourth-quarter sales rose 6.6% to $2.65 billion, from $2.48 billion in the period a year ago.
Health Net estimated earnings of 54 cents a share in the first quarter and $2.48 to $2.52 for 2003, slightly above its previous forecast of $2.42 to $2.47.
Health Net shares Thursday rose 52 cents to close at $23.60 on the New York Stock Exchange.
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