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Bausch warns of shortfall
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October 12, 2000: 7:38 a.m. ET
Vision care maker meets 3Q forecast but will miss 4Q, cut 450 jobs
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NEW YORK (CNNfn) - Bausch & Lomb reported third-quarter earnings of 70 cents a share Thursday, in line with Wall Street estimates, but warned it will miss forecasts for the fourth quarter and 2001.
Rochester, N.Y.-based Bausch & Lomb (BOL: Research, Estimates) said earnings excluding one-time items rose to $37.8 million, or 70 cents a share, from $37.3 million, or 64 cents a share, a year earlier. Analysts had forecast 70 cents a share, according to First Call, which tracks Wall Street forecasts.
The maker of contact lenses and other vision care products also warned that currency fluctuations and increased investment in research and development will cut fourth-quarter results by up to 10 cents a share.
 Currency also will have an impact on Bausch's expectations for 2001, reducing earnings by another 14 cents to 16 cents a share. Bausch now expects earnings of $2.70 to $2.75 a share in 2001.
In August, Bausch warned that a decline in lens-care product sales would lead to flat sales for the rest of the year.
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Revenue for third quarter, ended September 23, fell 1 percent to $440.9 million. Including unusual items, net earnings plummeted to $14.7 million, or 27 cents a share, from $231.8 million, or $3.94 a share, a year earlier.
Bausch & Lomb also will cut about 450 non-manufacturing jobs over the next several months, mainly in North America facilities, that will save the company about $20 million to $30 million. The cuts are part of the company's strategy to shore up its falling share value.
Bausch & Lomb said R&D spending will increase in the fourth quarter for its primary product, Envision TD, a treatment for retinal and other diseases of the back of the eye.
"This product is the number one development priority of the company, and I am willing to sacrifice short-term earnings in order to accelerate its longer-term potential," Bausch CEO William Carpenter said.
Bausch & Lomb shares fell 31 cents to $39.06 Wednesday. 
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Bausch & Lomb
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