American
Power Conversion Corp., a maker of power-supply products, said
fourth-quarter profit fell 2.7 percent after the company recalled
about 2.1 million power-supply devices.
Net income fell to $28.3 million, or 14 cents a share, from
$29.1 million, or 15 cents, a year earlier, said Deborah Hancock,
director of investor relations. Revenue rose 5.7 percent to $358
million from $338.6 million.
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American Power had a fourth-quarter charge of $14.5 million,
or 8 cents, related to the recall of devices that provide back-up
power supply for personal computers. The company, which announced
the recall last month, said at the time that it received eight
reports of units that overheated, three of which involved minor
property damage.
American Power said fourth-quarter profit, excluding the
recall and an expense to write down assets, would have been 23
cents a share. On that basis, the company was expected to earn 21
cents, the average estimate of seven analysts surveyed by Thomson
First Call.
Shares of West Kingston, Rhode Island-based American Power
fell 46 cents to $15.50 at 4 p.m. New York time in trading on the
Nasdaq Stock Market. They’ve risen 12 percent over the past year.
Bloomberg News
