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Twinlab warns on earnings
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February 24, 1999: 12:26 p.m. ET
Shares of vitamin and St. John's Wort vendor careen lower on earnings warning
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NEW YORK (CNNfn) - Shares of Twinlab Corp. were punished Wednesday after the vitamin maker warned that first-quarter and full-year profits for 1999 may come up far below last year's levels.
In Nasdaq trading just after noon ET, shares of Hauppage, N.Y.-based Twinlab (TWLB) fell 2-1/4, or 24 percent, to 7-1/4 on heavy volume of 3.4 million shares.
Ross Blechman, the Twinlab chairman, chief executive officer and president, said the company's first-quarter earnings will be "significantly below" profits of a year ago, due in part to an industry-wide inventory glut and a sharp drop in sales.
Last year's sales were inflated partly by a boom in sales of St. John's Wort and other herbal products, Blechman said.
After a restatement, first-quarter 1998 profits were 29 cents per share. Analysts surveyed by First Call Corp., which tracks earnings targets, expected Twinlab to report profit of 29 cents a share in the first quarter of 1999 and $1.38 for the year.
Twinlab said revenue and profit in its first, second and third quarters of last year were inaccurately stated in its earlier filings because sales orders were recorded before shipping had been completed.
Twinlab said its full-year results for 1998 were not affected by the restatements. For the year, the company reported net income before extraordinary items of $29.7 million, or $1.09 a share, up from $25.9 million, or 87 cents per share, in 1997. 
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Twinlab
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