Nordion reports profit on lower costs

Tue Jun 5, 2012 5:34pm EDT

(Reuters) - Medical isotope provider Nordion Inc (NDN.TO) (NDZ.N) reported a quarterly profit, helped by lower costs, even as shipment delays and maintenance at its NRU reactor hurt revenue.

For the second quarter, net income was $3.2 million, or 5 cents per share, compared with a loss of $7.4 million, or loss of 11 cents per share, a year earlier.

Revenue fell 27 percent to $50 million, hurt by delays in cobalt-60 shipments to customers as well as the impact of the planned one-month National Research Universal (NRU) reactor shutdown.

Ottawa-based Nordion is one of the world's largest suppliers of molybdenum-99, often used to diagnose cardiac problems. Its raw materials come from an aging nuclear reactor at Chalk River, Ontario, one of the few reactors in the world that produces the substance on a commercial scale.

Regulators closed the facility due to safety concerns in the fall of 2007 and again from May 2009 to August 2010, causing a worldwide shortage of the isotopes, encouraging many of Nordion's customers to diversify suppliers.

Medical isotopes revenue fell 25 percent to $20.8 million, from last year.

Corporate and other spending was $2.8 million, down $5.0 million from last year. Corporate selling, general and administrative expenses were $2.1 million in the quarter, down $1.1 million from a year ago.

Nordion's shares, which have lost 7 percent of their value over the last three months, closed at C$9.43 on the Toronto Stock Exchange on Tuesday.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Joyjeet Das)

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