West Pharma trims 2008 outlook on stronger dollar

LIONVILLE, Pa. - West Pharmaceutical Services Inc. on Tuesday lowered its 2008 profit outlook, as renewed strength in the dollar will lead to lower revenue.

The company, which makes parts for vials and syringes, forecast an adjusted profit of $2.38 to $2.43 per share for the year, down from an earlier forecast of $2.40 to $2.50 per share. It reduced its revenue estimate to $1.06 billion from $1.08 billion, primarily due to a smaller foreign currency benefit. The company also cut its pharmaceutical systems sales guidance by about $25 million.

On average, analysts expect a profit of $2.46 per share on $1.08 billion in revenue, according to a Thomson Reuters survey.

In the fourth quarter, West said it expects to earn 55 cents to 60 cents per share, excluding one-time costs. Analysts expect 54 cents per share.

In 2009, the company said it expects sales to grow between 7 and 9 percent, ignoring the effect of currency exchange benefits, which implies revenue of $1.09 billion to $1.11 billion. Analysts expect $1.17 billion in revenue, including gains from foreign currency exchange.

Also on Tuesday, West reported third-quarter results that were slightly lower than Wall Street expected. Its shares declined $1.59, or 4 percent, to $38.57.

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