Earning Report: Mylan Inc. reported fourth-quarter profit

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Generic drug giant Mylan Inc. on Thursday reported fourth-quarter profits rose 11 percent, to $180.2 million from $162 million a year earlier, as CEO Heather Bresch said the Cecil-based company was poised for another “substantial transaction” this year.

Revenue for the final three months of 2013 was $1.81 billion, an increase of 5 percent from $1.72 billion the previous year, while per-share profits climbed 15 percent to 45 cents from 39 cents. Stripping out special items, per-share profits were 78 cents, an increase of 20 percent from 65 cents a year earlier.

For the full year, Mylan saw earnings drop 3 percent to $623.7 million from $640.9 million as new product releases were 69 percent lower than in 2012 . Earnings per share edged up 4 percent to $1.58 from $1.52. Revenue for 2013 was $6.91 billion, an increase of 2 percent from $6.8 billion the previous year. Adjusted earnings per share rose 12 percent to $2.89 from $2.59.

“We currently expect to be in a position to execute on another substantial transaction this year,” Ms. Bresch said in a statement.

Any deal would come on the heels of Mylan’s $1.6 billion acquisition of Agila Specialties, a generic injectable drug maker based in India, which was completed in December.

In a conference call Thursday, analysts asked for details on what type and size of business Mylan might be eying.

“We’re not limiting ourselves,” Ms. Bresch said. “We’re looking at anything that would be strategic and complement us and be accretive” to earnings.

Would the company consider a merger of equals or being swallowed up by a larger suitor?

“We intend to continue to be a leader in this industry and continue to shape this industry,” she said.

Ms. Bresch said the company expects adjusted earnings per share to grow 19 percent in 2014 on revenue that increases 16 percent.

Mylan shares closed at $56.27 Thursday, up $4.85, or 9.4 percent.

Nova Chemicals

Nova Chemicals said 2013 fourth-quarter and full-year profits surged primarily because of record sales and higher margins of its plastics used in consumer and industrial packaging.

Profit in the fourth quarter nearly tripled to $152 million, from $53 million in the fourth quarter of 2012. Revenues were $1.4 billion, up from $1.1 billion in the 2012 fourth quarter. For the full year 2013, profits rose by 24 percent to $658 million, from $531 million in 2012. Annual revenues were $5.3 billion, up from $5.1 billion in 2012.

Based in Calgary, Canada, Nova has its executive operations center in Moon and a plant in Monaca, Beaver County. It is wholly-owned by International Petroleum Investment Co. of the United Arab Emirates.

In a conference call with debt-holders, Nova Chief Executive Randy Woelfel said the company expects to be the first in its industry to tap three new sources of ethane to power its Canadian facilities.

In December, Nova began using ethane from Marcellus Shale to feed its plant in Corunna, Ontario. Last month, it began utilizing ethane extracted from oil sands in Alberta, Canada, for its Joffre, Alberta, facility. Later this year, it expects to use ethane transported from the Williston Basin in North Dakota via the Vantage Pipeline to its Alberta operations.

The diverse ethane supply should allow Nova to run its plants “cost competitively for years to come,” Mr. Woelfel said.

RTI International Metals

RTI International Metals reported a fourth quarter loss and lower profits for all of 2013, citing an $18 million impairment charge related to its medical device manufacturing business. The fourth quarter loss amounted to $6.3 million, or 18 cents per share. Sales for the quarter increased 8 percent to $200 million. In the year-ago quarter, the Moon titanium producer reported net income of $6.6 million, or 22 cents per share.

For all of 2013, RTI reported net income of $11.6 million, or 43 cents per share vs. 2012 earnings of $14.9 million, or 44 cents per share. Sales rose 12 percent to $783.3 million.

Ansys

Southpointe-based engineering-simulation company Ansys reported fourth-quarter revenues of $236 million, up from $220.7 million during the same period last year. Fourth-quarter profits spiked to $75.9 million, or 80 cents per share, up from $56.1 million, or 59 cents per share, during the same period last year.

For the 2013 fiscal year, Ansys posted net income of $245.3 million, or $2.58 per share, up from $203.5 million, or $2.14 per share. Annual revenue jumped from $798 million last fiscal to $861.3 million. The company reported operating cash flows of $85 million for the fourth quarter and $333 million for the fiscal year.

The results include approximately $11 million, or 12 cents per share, in incremental tax benefit funds released because concerns surrounding 2009 and 2010 tax returns have been resolved with the IRS taking no exception to the filings.

The company is projecting revenues between $210.5 million and $219 million for the first quarter of 2014 and revenues in the range of $935 million to $969 million for the fiscal year.

Ansys closed Thursday at $83.20, down 1.5 percent from the previous day.

L.B. Foster

Green Tree-based L.B. Foster reported net income of $7.28 million, or 71 cents per share, in the fourth quarter, up from $6.67 million, or 65 cents per share. The company, which makes products for the rail, construction and energy markets, said sales rose to $156.5 million during the three months ended Dec. 31, from $140.7 million the previous year.

For the full year, L.B. Foster reported a profit of $29.3 million, or $2.85 cents per share, compared to $16.2 million, or $1.58 per share. Sales of $598 million compared to $589 million a year earlier.


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