Neogen Reports Record Third Quarter

A 20 percent third-quarter revenue has been reported by Neogen Corp.

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Neogen Corp.’s Animal Safety Division reported March 19 that its third-quarter revenue increased by 20 percent, to $13.7 million, from $11.3 million in the year-ago period.

Disinfectant and cleaning products from the DuPont acquisition accounted for the gain, according to the company.

Year to date, the division reported a revenue increase of 29 percent over the prior year, from $33.2 million to $42.7 million.

Sales of veterinary instruments increased by 12 percent over the prior year. The company said the increase is being driven by continuing market share gains in the retail market, along with significant sales gains in disposable needles and syringes.

Neogen’s Food Safety Division reported revenue of $14.2 million for the third quarter ended Feb. 28, compared to $13.8 million in the year-ago period.

Year to date, the division reported revenue of $45.1 million, up from $42.1 million.

Overall, the Lansing, Mich.-based company reported third-quarter net income of $2.8 million on revenue of $27.8 million, compared to $2.7 million and $25.2 million in the year-ago period.

Year to date, Neogen reported net income of $10.5 million on revenue of $87.8 million, compared to $8.9 million and $75.3 million.

“There were clearly some factors in the general global economy that impacted our third-quarter performance,” said Lon Bohannon, the company’s president and chief operating officer. “Customers have been more reluctant to take the inventory stocking orders that they had in the past. We have also seen a longer decision-making process in obtaining approvals for capital expenditures. We expect more normal ordering patterns to return as consumer and business confidence improves.

“I think the fact that Neogen was able to report quarterly revenue and profit growth during this economic downturn is a significant achievement. We continue to believe that our extensive product line of food and animal safety solutions provides us excellent short-term and long-term growth.”

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