Halyard Health slides on Q2 results, cuts guidance

(Reuters) — Halyard Health (NYSE:HYH) reported a 6% fall in 2nd-quarter revenue and cut its full-year profit forecast, hurt by lower sales volume in its surgical and infection prevention business and a stronger dollar.

Halyard Health, which was spun off from Kimberly-Clark (NYSE:KMB) in November, said it expects net sales growth to decline 1% to 3% percent in 2015.

The company also cut its full-year adjusted earnings forecast to $1.90-$2.10 per share, from $2.30-$2.50.

The company reported net income of $8 million, or 17¢ per share, for the quarter ended June 30, compared with a net loss of $4.5 million, or 10¢ per share, a year earlier.

On an adjusted basis, the company earned 52¢ per share.

Halyard makes eye shields, face masks, disposable gowns, gloves and shoe covers.

Net sales in Halyard’s surgical and infection prevention business, which accounts for nearly two-thirds of its total sales, fell 10.6% to $255.3 million.

Total net sales slid 6% to $389.3 million.

The dollar rose about 6% in the 1st half of this year against a basket of major currencies.

Although the greenback steadied recently, it is expected to rise 5% in the 2nd half of the year, according to a Reuters poll of analysts.

Halyard received almost a fourth of its 1st-quarter revenue from outside the U.S.

Up to Monday’s close of $39.76, the stock had fallen 13% this year. HYH shares closed down -11.8% at $35.09 yesterday.

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