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UPDATE 1-BioMerieux cuts sales target as W.Europe, U.S. weak

Published 10/22/2010, 03:02 AM
Updated 10/22/2010, 03:04 AM

* Sees organic sales up 4.5 percent this year

* Keeps operating margin target

* Shares fall 4.1 percent in early trade

(Adds detail, background)

PARIS, Oct 22 (Reuters) - French in vitro diagnostics group BioMerieux cut its full-year organic sales growth target again on Friday, citing weakness in the healthcare industry in western Europe and North America. The company said it now expects sales to rise 4.5 percent in 2010, down from a forecast of a 6 percent increase given in September.

"The healthcare environment in western Europe and North America has continued to deteriorate," Chief Executive Stephane Bancel said in a statement.

BioMerieux stuck to its full-year target of an operating margin before non-recurring items of between 17 and 18 percent at constant exchange rates.

The company said like-for-like sales rose 4.3 percent to 984 million euros ($1.4 billion) in the first nine months of the year, but declines in North America and Latin America as well as slower growth in Europe cut the rate of increase to 1.1 percent in the third quarter.

"Sales continued to be hindered by ongoing uncertainty in the healthcare industry" in the United States, BioMerieux said. Sales in France fell due to laboratory consolidation, it added. ($1=.7181 Euro) (Reporting by James Regan; Editing by Michael Shields)

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