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Allergan Reports $21.7-Million Profit for Quarter : Health: Earnings for the Irvine company were down slightly after contact lens solution recall.

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TIMES STAFF WRITER

Despite taking a $4-million charge for its recent recall of certain eye care products, Allergan Inc. on Wednesday reported first-quarter earnings of $21.7 million, or 34 cents a share.

The Irvine company’s net income was $500,000 lower than the previous year’s first-quarter profit of $22.2 million, or 35 cents a share. Quarterly revenue rose 9% to $228.3 million this year from $210.1 million.

Allergan said last week that it was taking the charge against its earnings for the worldwide recall of 400,000 bottles of its contact lens solution, about half of which were to be sold domestically.

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The company recalled the bottles because the solution didn’t meet its standards after the manufacturing process was changed. It said at the time that the chances were “remote” that the solution would cause any health problems.

“The problem has been corrected and all product currently being manufactured and shipped to our customers complies with all applicable standards,” said William C. Shepherd, Allergan’s president.

The company’s stock closed at $28.25 a share on Wednesday in New York Stock Exchange trading, down 62.5 cents a share from Tuesday.

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The company, which also makes skin care products and surgical supplies, had most of its sales increases in its lens care and surgical business, said Steve Gerber, an analyst with Oppenheimer & Co. in Los Angeles.

Sales of Allergan’s surgical supplies were $40.1 million during the first quarter, an increase of 47%, or $12.8 million, over last year. Sales for eye-care products rose 10% to $85 million.

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