Cambrex stock crashes on major profit warning; Mylan settlement adds to woes: 2003 EPS forecast revised to $1.05 to $1.25 versus $2 to $2.15. (Financial).

Chemical Market Reporter, April, 2003 by Chang, Joseph

NOT LONG AGO a darling of Wall Street, Cambrex Corp. saw its shares plunge by more than one-third as it dramatically slashed 2003 profit projections in the face of the loss of a major contract biopharmaceutical manufacturing customer, a tentative legal settlement with Mylan Laboratories Inc., and competitive pricing pressures.

Cambrex expects to take an after-tax charge of around $8.5 million, or 32 cents per share related to the settlement, bringing 2003 earnings per share (EPS) to $1.05 to $1.25. However, even excluding the charge, forecasted EPS of $1.37 to $1.57 falls far short of the company's January guidance of earning between $2 and $2.15 per share. "There seems to be a relatively large gap between the earnings shortfall and what they could...

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