August 12, 2010 / 11:31 AM / 8 years ago

UPDATE 1-CML HealthCare Income Fund Q2 profit falls

* Revenue falls about 11 pct

Aug 12 (Reuters) - Canada’s CML HealthCare Income Fund CLC_u.TO, which specializes in imaging and laboratory services, posted a lower quarterly profit, hurt by weak conditions at its U.S. operations.

The fund earned C$22.9 million, or 25 Canadian cents a unit, in the second quarter, down from C$25.9 million, or 29 Canadian cents a unit, last year.

Revenue fell about 11 percent to C$119.7 million.

“While our Canadian operations demonstrated organic growth in the second quarter, the U.S. continued to operate under challenging economic and industry conditions,” Chief Executive Paul Bristow said.

During the quarter, slowdown in physician office visits and radiation exposure concerns from CT scans contributed to volume declines in the United States.

The fund, which plans to convert into a corporation effective Jan. 1, 2011, also set its initial post-conversion dividend.

Bristow said the dividend is expected to be 6.29 Canadian cents a share, payable monthly, or 75.48 Canadian cents per share annualized.

Units of the fund closed at C$9.51 Wednesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore)

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