Lansing-based Neogen Corp just finished its most profitable third quarter yet, despite obstacles posed by the declining global economy. Third quarter revenues increased 11 percent to $27.8 million, a record for the 26-year-old company which projects food and animal safety will play an ever-increasing role in its future business.
The Lansing-based food safety division posted sales of $14.2 million in the three-month period, compared to $13.8 million a year earlier. Its rapid tests to detect food allergens, including milk, peanut and egg residues are up approximately 50 percent.
"Given the global economic situation, particularly in the last quarter, our performance was noteworthy," said James Herbert, Neogen's chairman and CEO.
Future revenue prospects include a test for antibiotic residues in milk products recently approved by the U. S. Food and Drug Administration, a rapid test for pesticides, and improvements to the company’s line of foodborne pathogen tests.
Year-to-date, nine-month revenue was $87.8 million, up 17 percent from $75.3 million a year earlier.
The company's third fiscal quarter ended Feb. 28. For the nine months, net income was $10.5 million, up 17 percent from $8.9 million a year earlier.
Neogen's Lexington, Ky.-based animal safety division led the company's third quarter revenue increase, with sales up 20 percent from $11.4 million last year to $13.7 million this year. Veterinary instrument sales continue to be strong, increasing by 12 percent over the prior year, Herbert says.
Source: Neogen
Gretchen Cochran, Innovation & Jobs editor, may be reached here.
All Photographs © Dave Trumpie
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