UPDATE 1-Patheon narrows loss, warns of revenue fall

(Adds details. In U.S. dollars)

TORONTO, Sept 5 (Reuters) - Patheon Inc (PTI.TO) reported a narrower quarterly loss, helped by a strong performance from its commercial manufacturing division, but warned revenue could slip in the next quarter due to seasonal factors.

The contract manufacturer said on Friday it lost $14.7 million, or 16 cents a share, for its third quarter ended July 31, compared with a loss of $63.1 million, or 68 cents, for the same time last year.

The quarter included $6.7 million in "repositioning expenses" related to the consolidation of two Ontario-based plants and the closure of a facility in Puerto Rico.

Last year the company said it planned to sell some Ontario production facilities and transfer operations to other sites as it moved away from over-the-counter drugs to more lucrative prescription drug manufacturing.

The company said its plan to close its York Mills facility and transfer the facility's commercial production to its Whitby facility by mid-2009 was on track.

The company said revenue for the quarter rose 18.4 percent to $195 million from $164.8 million.

Of that total, its commercial manufacturing division contributed $157.3 million.

But it cautioned that due to "normal summer shutdowns" fourth-quarter revenue is expected to be lower than its third-quarter revenue and "could be subject to fluctuations in the strength of the U.S. dollar." ($1=$1.07 Canadian) (Reporting by Scott Anderson; Editing by Frank McGurty)