Second news release:
Rexall says on track to hit record earnings
BOCA RATON, Fla., Aug 5 (Reuters) - Rexall Sundown Inc. said Wednesday the company remains on track to deliver record revenues and earnings despite bellwether General Nutrition Cos. Inc.'s (GNCI - news) decision Tuesday to slash its prices on some products, causing most vitamin companies' stocks to dip.
Rexall said in a statement that its stock's Tuesday decline to 21-3/4, its lowest point since November 1997, was due to General Nutrition's decision to cut prices up to 40 percent on selected groups of basic vitamins and up to 20 percent on its sports nutritional supplements amid stiff competition.
However, Rexall said the decision does not negatively impact the growth prospects of the vitamin and nutritional supplement industry or on the strength of Rexall Sundown, which also makes and markets vitamins and nutritional supplements.
First Call expects the company to post fiscal year earnings of $0.95 per share and fourth quarter earnings of $0.28 per share. In fiscal 1997, the company posted earnings of $1.03 per share on revenue of $263.4 million. In the year-ago fourth quarter, Rexall posted earnings of $0.29 per share on revenues of $79.2 million.
Yet, a puzzling reaction to the news - must be the dow, and the market makers driving the price down. I did get in Dorine and also got some calls also...doc |
