Hillenbrand, Inc. Reports Third-Quarter Revenue of $165 Million and Earnings Per Shar...( BATESVILLE Ind. Aug. 12 /- Hillen...),Health

BATESVILLE, Ind., Aug. 12 /PRNewswire-FirstCall/ -- Hillenbrand, Inc. (NYSE: HI) reported third-quarter 2008 revenue of $165 million, consistent with $165.6 million reported in the third quarter of 2007. In addition, the company reported growth in third-quarter earnings per share, operating profit and cash flow from operations over prior year results.

Revenue for the quarter remained essentially flat, even as the company faced some challenging headwinds from a decline in volume. This was largely due to the termination of the planned acquisition of an independent distributor last year, which resulted in the cancellation of a related supply agreement with that distributor. In addition, revenue was impacted by a general decline in burials and a lower average product mix.

"After an increase in influenza-related deaths in the second quarter, we experienced the typical seasonal slowdown in the third quarter," said Kenneth A. Camp, president and CEO of Hillenbrand, Inc. "Despite the market challenges, we were able to maintain revenues at a level consistent with 2007 results."

Gross profit remained stable, as substantial increases in fuel and commodity prices were offset by productivity cost improvements and improved material usage. Third-quarter total operating expenses were favorable by 16.7 percent to the prior year because of a $6.8 million one-time expense in 2007 related to the terminated acquisition.

The company's effective tax rate for the quarter was 34.9 percent versus 36.4 percent in the same period in 2007, reflecting the effects of an increased benefit from manufacturing tax deductions in 2008. Net income for the quarter was $26.7 million, or $0.42 fully diluted earnings per share, up from $21.5 million, or
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