Imation Profit Soars on Data Boom
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OAKDALE, Minn. (AP) _ Imation Corp. reported an 83 percent increase in third-quarter earnings Tuesday on strong demand for removable data storage tape, and said fourth-quarter profits are expected to be well above Wall Street expectations.
Imation earned $18.5 million, or 52 cents a share, in the quarter ended Sept. 30, up from $10.1 million, or 29 cents a share, a year earlier.
Revenues fell slightly to $263.8 million, from $265.6 million.
Earnings from continuing operations came to 46 cents a share, beating by a penny the consensus estimate of analysts surveyed by Thomson First Call. Earnings from continuing operations in the third quarter of 2001 totaled 26 cents a share.
Bill Monahan, chairman and chief executive officer, said the results show Imation is on the right track in focusing on its removable data storage business.
``The need for back-up, archiving, disaster recovery and record retention remains a top priority for organizations globally,″ Monahan said. ``The removable media industry is a cornerstone in how we protect, manage, share and use information important to us both in business and at home.″
Monahan also said fourth-quarter earnings are expected to range from 47 cents to 52 cents a share. Analysts surveyed by Thomson First Call had been expecting earnings of 39 cents for the quarter.
For the first nine months, Imation earned $56.8 million, or $1.60 a share, more than doubled from $24.9 million, or 71 cents a share, a year earlier. Revenues fell to $795.8 million, from $819.5 million.
This year’s nine-month results included a one-time pretax gain of $8.4 million, or 16 cents a share, mainly from settlement of a lawsuit.
The 2001 nine-month results include results of a color proofing and color software business which was sold to Kodak Polychrome Graphics last Dec. 31, and costs related to abandoned computer software.
Shares of Imation fell $1.07, or 2.9 percent, to close Tuesday at $35.73 on the New York Stock Exchange.