December 13, 2007 / 12:47 PM / 10 years ago

MDS results drop 68 percent, warns of isotope fallout

TORONTO (Reuters) - MDS Inc MDS.TO MDZ.N said on Thursday its fourth-quarter profit dropped 68 percent, hurt by the falling U.S. dollar, and said a shutdown of a nuclear reactor that makes more than half of the world’s supply of medical isotopes could hurt future results.

The Canadian health sciences company said it earned $15 million, or 13 cents per share, for the period ended October 31, down from $47 million, or 33 cents a share, for the same time last year.

On an adjusted basis, earnings per share were 9 cents.

Revenue for the quarter was $318 million, up 22 percent from $260 million for the same time last year.

Analysts were expecting an average of 16 cents a share on revenue of $333.8 million, according to Reuters Estimates.

The company’s Nordion division has been hard hit by the shutdown of the Chalk River nuclear plant that has been off line since November.

The company said last week that its medical isotopes and radiopharmaceuticals division would see a bigger reduction in its first-quarter EBITDA (earnings before interest, taxes, depreciation and amortization).

It repeated on Thursday that it expects the delay to hit its adjusted EBITDA by about $8 million to $9 million.

“While we are working closely with our global supply network to lessen the impact of this shutdown, we will not be able to fully mitigate the impact of this supply disruption on our results,” the company said in a release.

Late on Wednesday Canada’s Parliament ordered the reactor be restarted immediately.

($1=$1.01 Canadian)

Reporting by Scott Anderson; Editing by Ka Yan Ng

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