Apria net income increases 10%

Home healthcare company Apria Healthcare Group reported a 10% rise in quarterly earnings, helped by increased revenue from its home respiratory and infusion services segments, and raised its 2007 profit forecast.

Third-quarter net income was $21.3 million, or 48 cents a share, compared with $19.3 million, or 45 cents, a year earlier. Revenue rose 3.6% to $396.1 million.

The quarterly earnings per share included a gain of 2 cents related to the resolution of previous tax items and a charge of 1 cent related to employee costs.

Analysts on average had expected the company to earn 46 cents a share, before special items, on revenue of $395.5 million for the quarter, according to Reuters Estimates.

Respiratory therapy revenue rose 4.7% to $270.2 million and infusion therapy revenue rose 4.6% to $73.2 million for the quarter.

Apria now sees 2007 earnings of $1.86 to $1.90 a share, excluding items. In July, it had projected earnings of $1.78 to $1.82 a share.

Shares of Lake Forest-based Apria fell 18 cents to $23.50.