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Chattem 1Q profit rises on lower costs

Chattem Inc., which makes toiletries and dietary supplements, said Tuesday first-quarter profit rose 32 percent as lower costs offset a drop in revenue.
/ Source: The Associated Press

Chattem Inc., which makes toiletries and dietary supplements, said Tuesday first-quarter profit rose 32 percent as lower costs offset a drop in revenue.

For the quarter ended Feb. 28, the company earned $19.6 million, or 99 cents per share, compared with profit of $14.9 million, or 75 cents per share, during the same period a year prior. Revenue fell 39 percent to $116.1 million from $120.8 million, mainly on international sales, the company said.

Excluding charges, the company said it earned $1.07 per share. Analysts polled by Thomson Reuters expected profit of $1.13 per share on revenue of $126.2 million.

The fiscal year ends in November.

Chattem also narrowed its fiscal 2009 profit guidance.

The company's key brands include Gold Bond, ACT, Icy Hot and Cortizone-10.

Shares fell $2.19, or 4.2 percent, to $50.61 in premarket trading.