Chattanooga-based Chattem on Thursday reported higher quarterly profits in what may be one of its last publicly released financial reports in its 130-year history.
The company, being bought by French pharmaceutical maker Sanofi-Aventis, posted fourth quarter net earnings of $1.18 per share, up 25.5 percent from a year ago, according to Chattem. That beat the consensus analyst estimate by 12 cents a share.
"They were strong," said Robert Long, Chattem's chief financial officer, about earnings. "We're pleased with where we are."
Adjusted net income was $22.5 million compared to $18.2 million a year ago, according to the consumer products maker.
Mr. Long said earnings were driven by its domestic business, including products such as Gold Bond.
Because the company is wrapping up its acquisition by Sanofi-Aventis, Chattem officials did not conduct a conference call with analysts after issuing its earnings statement.
Mr. Long said the company may issue one more quarterly earnings report. After that, he said it was likely Chattem's financials results would be folded into those of Sanofi-Aventis.
Sanofi-Aventis is paying $1.9 billion in cash for Chattem as the French giant makes a major foray into consumer health products.
Zan Guerry, Chattem's chief executive, has said it remains full speed ahead on a new $35.5 million manufacturing facility off Broad Street on which construction has started.
CHATTEM EARNINGS2009* 4th quarter -- $1.18 per share* 3rd quarter -- $1.24* 2nd quarter -- $1.26* 1st quarter -- $1.01
"We need it up and running soon," Mr. Guerry said recently. "Walmart just gave us some very good news on more additions of Act (mouthwash)."
Sanofi-Aventis' tender offer of $93.50 per share for Chattem's stock will expire Feb. 8 if the share count is above 50 percent, Mr. Long said. The deal's legal closing will take place shortly thereafter, he said.
Mr. Long said the company already is at work on the marketing and packaging of Sanofi-Aventis' allergy medicine Allegra, which is shifting from a prescription medication to over the counter.
"That's definitely a point of focus," he said.