Charles River cuts jobs, posts Q4 loss

Charles River Laboratories said it is streamlining operations and implementing efforts to become leaner and more efficient as the economic recession takes its toll on the contract research organization. This restructuring includes a 3 percent company-wide workforce reduction, the majority of which will be in the preclinical services unit. The company says it will take a charge of $9 million in the first quarter for the layoffs. 

This comes as the company announces a larger-than-expected Q4 loss due to a goodwill impairment charge of $700.0 Million, or $10.43 per shares. Charles River reported a net loss of $661.9 million, or $9.91 per share, on net income of $36.9 million, or 52 cents per share. Net sales decreased 2.1 percent to $311.4 million from $318 million the company garnered in the Q4 of 2007. Overall, fourth quarter earnings were $0.59 per share, a 9.2 percent drop from the $.065 reported during the same quarter last year. According to RTTNews, analysts expected revenues of $312.58 million and earnings of $0.55 per share. 

Full-year 2008 adjusted earnings came to $199.8 million, or $2.89 per share, compared with $180.2 million, or $2.62, for 2007. Analysts expected earnings of $2.82 per share, Forbes reports.

"Our 2008 results reflect the impact of the global economic crisis and the challenges our pharmaceutical and biotechnology clients are facing, especially in the PCS segment," James C. Foster, Chairman, President and Chief Executive Officer, said in a statement. "...We believe that this environment is temporary, and that our clients will continue to outsource drug development services as they strive to improve the efficiency of their drug pipelines."

- check out the Charles River release
[1]- read the Forbes article [2]
- view the RTTNews article [3]

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