Neogen (NASDAQ:NEOG) sees sales growth continuing in Q4
Reuters, Wednesday, March 26, 1997 at 10:16
LANSING, Mich., March 26 (Reuter) - Neogen Corp said
Wednesday that it expects sales growth shown in January and
February, which were part of its fiscal third quarter, will
carry over to the fiscal fourth quarter.
Earlier, it reported third quarter earnings of $0.08 a
share on sales of $3,587,000, up from year-ago earnings of
$0.03 a share on sales of $3,330,000.
"I am extremely pleased with third quarter results," James
Herbert, president, said in a statement. "The markets for food
safety diagnostic products continue to grow both domestically
and internationally."
Future sales will benefit from continued phase-in of new
government regulations and the introduction of more than 15 new
Neogen products currently under development, he added.
Lon Bohannon, chief financial officer, said January and
February sales showed substantial growth and this momentum will
likely carry over to the fourth quarter.
Neogen makes products to control residues and improve
quality in food, agricultural, pharmacologic and environmental
industries.
The company said sales of diagnostic test kits to detect
harmful residues in grain, nuts and spices were up 31 percent
in the third quarter and grew 47 percent in the first nine
months. Sales of test kits to detect harmful bacteria, such as
E. coli and salmonella, to the meat and poultry industry
increased nearly 80 percent in the third quarter and were up
148 percent year-to-date.
Sales of diagnostic products to the human clinical market
were 43 percent higher in the third quarter, although sales of
veterinary instruments fell 18 percent, Neogen said. Lower
grain costs, improved cattle prices and a recently introduced
delivery instrument are expected to result in improved
veterinary instrument sales over the next three to six months. |
