MDS, parent company to radioisotope developer MDS Nordion of Kanata, Ontario, said the temporary shutdown of the Chalk River nuclear reactor will have less of a financial impact on the company than anticipated.
On Wednesday, Canada's Parliament voted to sidestep Canadian Nuclear Safety Commission regulation and oversight of the facility for 120 days, thus allowing the reactor to resume manufacturing of medical isotopes for nuclear medicine procedures.
MDS expects its MDS Nordion division to ship radioisotopes sooner than its original resumption timeline of mid-January. Atomic Energy of Canada (AECL) anticipates production will begin again during the week of December 17.
MDS has estimated that the shutdown would result in lower first-quarter earnings (before interest, taxes, depreciation and amortization) of $8 million Canadian ($7.8 million U.S.) to $9 million Canadian ($8.8 million). Company president Stephen DeFalco said the estimated earnings shortfall would be less than the initial forecast, but declined to provide a number.
For its fiscal fourth quarter (end-October 31), MDS posted a profit of $15 million Canadian ($14.7 million), down 68% from $47 million Canadian ($46 million) in same period last year. The company attributed the downturn to the declining value of the U.S. dollar.
Revenues for the fourth quarter totaled $318 million Canadian ($311 million), a gain of 22% from $260 million Canadian ($255 million) in the same quarter of 2006.
Related Reading
Canadian Senate OKs Chalk River restart, December 13, 2007
MDS Nordion divests two product lines, November 30, 2007
MDS Nordion signs cobalt-60 supply pact, October 19, 2007
MDS Nordion to help create molecular imaging center, June 5, 2007
Molecular imaging, nuclear medicine share spotlight at SNM 2007, June 4, 2007
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