While Nordion saw revenues increase 10.5 percent to $84 million in the fourth quarter of 2008, mainly due to redirected orders from the nuclear reactor shutdown in Europe, it could not prevent its parent company MDS from sliding into the red.
Nordion, which provides medical isotopes for molecular imaging, also said preliminary adjusted earnings before interest, tax, depreciation and amortization (EBITDA) edged up to $21 million from $20 million, according to Ottawa Business Journal.
However, Nordion reported a $246 million net writeoff related to the Maple nuclear reactor project, which was cancelled earlier this year without a long-term plan being disclosed. The decision to cancel raised questions about how Nordion will provide medical isotopes in the future, considering the 50-year-old age of the National Research Universal Reactor in Chalk River.
On a preliminary, unaudited basis, the MDS earnings for the fourth quarter were $322 million compared to $327 million a year earlier. The company also booked a net loss of $255 million, compared to a profit of $15 million in the year-earlier quarter.
For the full 2008 year, MDS said revenues rose 8.7 percent to $1.32 billion, but it had a loss of $233 million, compared to a profit of $781 million in 2007.
According to MDS, the fourth quarter results do not include the $270 million to $370 million estimated write-down of MDS Pharma Services goodwill that was previously announced on Dec. 10. The company said expects to file its audited year-end 2008 results, including the MDS Pharma Services goodwill write-down, with its annual reports in January 2009.