MDS, parent company of MDS Nordion of Ottawa, is blaming the medical isotope shortage for a 40% decline in revenues in its fiscal fourth quarter (end-October 31, 2009).
According to a report in the Canadian Press, MDS' preliminary results include a $19 million loss (U.S.) from continuing operations and a $58 million (U.S.) loss overall. Total revenue from continuing operations fell to $51 million (U.S.), compared with $84 million (U.S.) in the fourth quarter of fiscal 2008.
MDS blamed the results on the continued closure of the Chalk River, Ontario, nuclear reactor operated by Atomic Energy of Canada (AECL). The 52-year-old reactor has been offline for repairs since May 2009. AECL anticipated returning the reactor to service in late March, but recently warned that repairs could last into April.
MDS CEO Steve West told analysts in a conference call that the loss from continuing operations in the fourth quarter compares with a loss of $264 million for the same period of 2008, when MDS recorded a $246 million write-off on the MAPLE medical nuclear reactor program.
MDS also is in the process of restructuring its businesses to cut costs. The company has reached an agreement to sell its Analytical Technologies business for $650 million to Danaher of Washington, DC, and is looking to divest its Pharma Services unit. Currently, there are no plans to sell its isotope operations.
MDS also is closing its corporate offices in Toronto and moving its operations to Ottawa. The relocation, designed to cut costs, is scheduled for completion by the end of this year.
Related Reading
MDS finalizes CEO position, January 8, 2010
MDS unveils CEO transition plan, September 18, 2009
MDS to divest non-Nordion units, September 2, 2009
MDS offers plan to fix Maple reactors, July 31, 2009
MDS urges Canada to complete Maple project, July 9, 2009
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