STERIS Corporation Reports Decline in Revenue for Q3 2005

Strategic Insights -

STERIS Corporation, a leading infection prevention and decontamination technologies company, reported a decline in revenue for the third quarter of fiscal 2005 compared to the same period in fiscal 2004. The decrease in revenue was attributed to a lower level of demand for capital equipment in Europe and weakness in the United States. However, the Isomedix Services segment recorded a significant increase in revenue and operating profit, driven by higher utilization of facility expansions and strong near-term demand.

Key Takeaways:

  • The Company reported a decline in revenue for the third quarter of fiscal 2005, down 11% from the same period in fiscal 2004, reflecting a continued lower level of demand for capital equipment in Europe and weakness in the United States.
  • The Isomedix Services segment recorded an operating profit of $5.0 million in the quarter, a significant increase from $3.2 million in the prior year quarter, due to increased volume and improvements in processing efficiencies.
  • The Company expects fiscal 2005 revenue growth of 2% to 3% compared to fiscal 2004, and earnings to be in the range of $1.28 to $1.30 per diluted share.
  • The Isomedix Services segment recorded a 14% increase in revenue to a record $24.9 million in the third quarter, driven by higher utilization of facility expansions and strong near-term demand.
  • The Company announced an agreement to acquire certain assets from Cosmed Group, Inc., which will be included in fiscal 2005 fourth quarter results.
  • STERIS Corporation's mission is to provide a healthier today and safer tomorrow through knowledgeable people and innovative infection prevention, decontamination, and health science technologies, products, and services.

Statistics:

  • Revenue decline in Q3 2005: 11%
  • Increase in profit for Isomedix Services segment: 55% ($5.0 million vs. $3.2 million)
  • Fiscal 2005 revenue growth expectation: 2% to 3%
  • Fiscal 2005 earnings expectation: $1.28 to $1.30 per diluted share
  • Revenue growth of Isomedix Services segment: 14% to $24.9 million

Sources:

  • "STERIS Corporation Reports Q3 2005 Results" by Dow Jones Newswires on January 26, 2005 via COMTEX
  • STERIS Corporation website (www.steris.com)