Charges pare Covidien profit

Walt Disney Co. profit rose 22 percent in the second quarter to $1.13 billion. Revenue grew 10 percent to $8.71 billion. (Walt Disney Co.)

Covidien Ltd., a Bermuda-based medical device maker and diversified healthcare company with US headquarters in Mansfield, said its fiscal second-quarter profit fell 33 percent on restructuring and other charges, but adjusted results topped analysts' estimates.

Earnings dropped to $263 million, or 52 cents per share, compared with $394 million, or 79 cents per share, in the previous year.

Income from continuing operations slipped to $249 million, or 49 cents per share, from $377 million, or 76 cents per share.

Excluding 11 cents per share for restructuring and asset impairment charges and 6 cents per share for the company's part of a Tyco shareholder settlement, income from continuing operations fell to 66 cents per share from 68 cents.

Revenue for the period ended March 28 gained 11 percent to $2.43 billion from $2.2 billion on improved results from its medical devices and imaging solutions segments.

Analysts expected net income of 59 cents per share on sales of $2.37 billion, according to a Thomson Financial poll.

Restructuring and asset impairment charges jumped to $64 million from $4 million, while research and development costs increased to $75 million from $63 million. (AP)

Covidien was spun off from parent company Tyco International Inc. in July.

Boston Beer Co., which brews Sam Adams-brand beers, said it swung to a loss in the first quarter, due to costs and lost sales stemming from a recall of some of its glass bottles last month.

For the quarter ended March 29, the loss was $3.7 million, or 27 cents per share, compared with a profit of $5.8 million, or 40 cents per share in the corresponding quarter last year.

Boston Beer said it was hurt by $5.9 million in costs associated with a recall of certain glass bottles. The voluntary recall was made public early last month after brewers found grains of glass in bottles.

The company said excluding the recall costs, it earned 35 cents per share.

Analysts polled by Thomson, on average, expected profit of 38 cents per share. Analyst estimates typically exclude one-time items.

Operating expenses rose 23 percent to $39 million, with advertising costs and administrative expenses both rising in the period.

Revenue rose 5 percent to $76.1 million, from $72.4 million in the year-ago period. Excluding the impact of the recall, current quarterly net revenue was $85.2 million. Analysts predicted revenue of $83.7 million.

Boston Beer said its number of barrels sold rose 2 percent. When the effect of the recall is excluded, the company said it sold 12 percent more barrels during the quarter.

The company credited its revenue rise with more customer interest in craft beers and its investments in its brands. (AP)

Hotel real estate investment trust Hospitality Properties Trust said first-quarter results edged up nearly 13 percent on higher rental income, narrowly beating Wall Street's expectations.

Funds from operations rose to $110.9 million, or $1.18 per share, from $98.5 million, or $1.08 per share, in the year-ago period.

On average, analysts surveyed by Thomson expected funds from operations of $1.17 per share.

Funds from operations, which adds such items as amortization and depreciation back to net income, is considered a key gauge of a real estate investment trust's strength because it gives a more accurate picture of cash performance.

Net income after paying preferred dividends increased to $48.3 million, or 51 cents per share, from $39 million, or 43 cents per share, in the prior year.

Revenue rose nearly 10 percent to $319.2 million from $290.7 million on higher rental income from the REIT's leased hotels and travel centers. (AP)

Medical researcher Charles River Laboratories International Inc. said first-quarter profit rose 23 percent on strong sales growth at both of its business segments.

For the quarter ended March 29, Charles River earned $45.2 million, or 64 cents per share, compared with $36.8 million, or 54 cents per share, in the year-ago period.

The 2007 quarter included a loss of $464,000, or a penny per share, in discontinued operations.

Excluding amortization and other one-time charges, adjusted profit was $50.8 million, or 72 cents per share, compared with an adjusted $43.2 million, or 64 cents per share, for the same period in 2007.

Total net sales increased 16 percent to $337.7 million from $291.2 million in the year-ago period.

Analysts polled by Thomson expected a profit of 69 cents per share on $325.2 million in revenue.

Sales at the research models and services segment climbed 18 percent to $168.6 million, while preclinical services revenue increased 14 percent to $169.1 million. (AP)