Agilent 2Q income falls on restructuring costs

Associated Press

SANTA CLARA, Calif. (AP) -- Scientific instrument maker Agilent Technologies Inc. said Tuesday that its net income fell in its fiscal second quarter, as it took more than $100 million in restructuring and amortization charges.

Net income dropped by 35 percent in the three months ended April 30. Excluding one-time items the company's profit was better than Wall Street expected, but revenue came up short of analysts' estimates. Agilent lowered its guidance for the full fiscal year, and also said it plans to cut 450 jobs, or about 2 percent of its staff positions.

Agilent makes electronic measurement and diagnostic machines used in medicine, chemistry and other areas of scientific research. Its net income decreased to $166 million, or 48 cents per share, from $255 million, or 72 cents per share. Excluding one-time costs and gains, adjusted earnings were 77 cents per share. Revenue was flat at $1.73 billion.

Analysts forecast 67 cents per share and $1.74 billion in revenue, according to FactSet.

Revenue from its electronic measurement business fell 13 percent to $760 million with fewer sales to wireless manufacturers. Its life science business got a boost as pharmaceutical market demand improved, and revenue there grew 3 percent to $405 million. Revenue from its chemical analysis unit rose 3 percent on improved demand from food markets.

Revenue from Agilent's diagnostic and genomic business rose to $166 million from $74 million.

The company said job cuts will reduce annual spending by about $50 million. It did not disclose further details about the moves.

Agilent now expects to report adjusted net income of $2.70 to $2.85 per share on $6.75 billion to $6.85 billion in revenue for the fiscal year. In February the company forecast $2.70 to $3 per share and $6.9 billion to $7.1 billion in revenue.

Analysts expected $2.87 per share and $6.99 billion in revenue on average.

The company said net income in the third quarter will range from 60 to 64 cents per share, with revenue between $1.63 billion and $1.66 billion.

Analysts expect 74 cents per share and $1.75 billion in revenue.

Agilent also expanded its stock repurchase authorization to $1 billion. The company announced a $500 million stock buyback in January, and it has bought back $219 million in stock since then. It expects to complete the current authorization by the end of the year.

Shares of Agilent rose 93 cents, or 2.2 percent, to close at $43.97. The stock added 73 cents to $44.70 in aftermarket trading.