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Earnings Roundup / Herbalife

Supplement firm profit drops 38%

February 25, 2009|TIMES WIRE REPORTS

Herbalife Ltd., a maker of nutritional and weight-loss supplements, said profit fell 38% in the fourth quarter as sales declined and administrative expenses rose.

The Century City company's earnings declined to $33.7 million, or 53 cents a share, from $53.8 million, or 77 cents, a year earlier.

In December, Herbalife said it would cut 6% of its workforce and restructure its business to help cope with the economic downturn.

Excluding restructuring costs and other one-time items, earnings totaled $43.4 million, or 69 cents a share, in the latest period.

Sales fell 11% to $512.9 million, in part because of the stronger dollar's negative effect on overseas sales.

Analysts polled by Thomson Reuters, who generally exclude one-time items, forecast earnings of 69 cents a share on revenue of about $543 million.

Herbalife shares gained 20 cents to close at $18.33, but fell $1.42, or nearly 8%, to $16.91 after the earnings news.

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