Accounting Move Lifts Chiron Profit

Chiron Corp.’s profit soared 82% in the fourth quarter because of an accounting change and higher sales of its flu vaccines, the biotechnology company said Wednesday.

Net income was $121.8 million, or 61 cents a share, up from $67 million, or 35 cents, in the year-earlier quarter.

The results reflected a $77.4-million reversal of a previous write-down of assets acquired in Chiron’s purchase of vaccine maker PowderJect Pharmaceuticals.

Revenue in the quarter rose 56% to $555 million from $356 million in the fourth quarter of 2002. Flu vaccine sales zoomed to $141 million from $19 million, driven by the PowderJect deal.

Excluding adjustments related to the acquisition, Chiron had operating income of $56.5 million, or 29 cents a share, compared with $63 million, or 33 cents, a year earlier. Wall Street had expected operating income of 29 cents.

For the year, Chiron said, net income rose 26% to $227 million, or $1.19 a share, compared with $181 million, or 94 cents, in 2002.

Excluding adjustments related to the PowderJect acquisition and other items, 2003 operating income was $297 million, or $1.54 a share, compared with $248 million, or $1.29, in 2002.

Revenue rose 38% in 2003 to $1.8 billion from $1.3 billion in 2002.

Chiron announced its results after the market closed. In Nasdaq trading Wednesday, Chiron closed up 34 cents at $51.23.