Kirschner reports $7.7 million loss in 4th quarter

March 21, 1991|By Peter H. Frank

Kirschner Medical Corp., showing the effects of a corporate housecleaning, said yesterday that it lost $7.7 million during the fourth quarter of last year.

The Timonium-based medical products company blamed the results on factors that ranged from political unrest in the Soviet Union to possible write-offs in connection with the sale of one of its divisions.

Kirschner said the combined effect of these adjustments led to a loss equal to $3.12 a share for the three months that ended Dec. 31. In the same period the year before, Kirschner lost $14.8 million, or $6.03 a share.

Revenue from continuing operations increased to $16.1 million from$14.9 million in the corresponding part of 1989.

The loss from continuing operations was $4.6 million during the most recent quarter.

C. Scott Harrison, the company's chairman and chief executive, said that $2 million of the quarterly loss stemmed from the creation of a reserve for possible write-offs related to the company's sale of its Chick Medical division, which makes surgical lights and operating room tables.

Another $2 million of the loss was attributed to a write-down on the value of inventory that had been flagged for sale in Russia and Latvia but, because of political instability, might not be sold, Dr. Harrison said. In addition, he said the company wrote off about $800,000 worth of inventory on which payments had been frozen in Brazil.

However, Dr. Harrison, who took over the top executive positions at Kirschner earlier this year, said the company has been profitable during the first two months of this year.

"We are slightly ahead of our budget projections at this point in time," he said.

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