MDS Nordion

Shares of MDS Inc.(TSX:MDS), parent company of Ottawa-based MDS Nordion, plummeted Thursday after the company reported a $10-million quarterly loss in Q3 2008 and reduced its profit and revenue outlooks for the year.

The company lost $10-million, or 8 cents a share, compared to a profit of $7 million in the same quarter last year, or 5 cents a share. Revenues were also down 3 per cent, at $298 million.

MDS also said revenue for the year will sit at around $1.23 billion to $1.25 billion, adding that profits will likely be between $18 million and $28 million. That's in contrast to the $1.25 billion to $1.29 billion in revenue originally projected by the company, along with profits of $45 million to $55 million.

While some divisions fared well in the quarter – MDS Pharma Services, for example, saw revenues jump $2 million to sit at $145 million – MDS Nordion revenue fell $4 million, from $76 million to $72 million, a decline attributed to the jettisoning of their external beam therapy and self-contained irradiator product lines. Combined, those products had brought $7 million to the company last year.

It's Analytical Technologies unit also saw revenue fall by $10 million, to $104 million.

As of noon on Thursday MDS shares were down 4.58 per cent, sitting at $15.01. In the past six months, MDS shares have dropped 8.63 per cent.

"(The loss) is attributed to the impact of lower revenue excluding foreign exchange, unfavourable revenue mix and investments in growth which offset productivity savings," the company said in a statement.