Kirschner Medical Corp. said yesterday that it expects to report a third-quarter loss as the costs associated with two failed merger attempts and a loan restructuring have eaten away at traditionally weak third-quarter earnings.
"That doesn't come as a big surprise," said Lawrence Marsh, an analyst with Wheat, First Butcher and Singer Securities who had been projecting a break-even quarter.
In the third quarter of 1991, the Timonium-based orthopedic device manufacturer showed a $21,000 profit, or 1 cent a share, substantially below earnings recorded in other quarters.
Lewis Parker, chief financial officer, explained that third-quarter earnings at the company were always weak, because Kirschner's plant in Spain shuts down for the month of August.
Mr. Parker declined to provide any specifics regarding the size of the expected loss or the costs associated with the merger attempts and loan restructuring.
Kirschner stock fell 75 cents, to $6.75 a share, yesterday.
The company also said yesterday that it signed an agreement with Maryland National Bank that allows it to pay off its $23 million in remaining debt by June 1994 on a more favorable schedule. Under the old loan, Maryland National could have called the loan at any time and required large payments every several months.