Lake Forest-based Apria Healthcare Group Inc. warned Friday that its revenue in the third and fourth quarters would fall short of expectations.
Apria said it is being hurt by lower revenue from its hospital contracts for respiratory and other therapies, higher fuel and health benefit costs, hurricane-related expenses and lower Medicare reimbursement rates.
The company expects revenue to grow 1% to about $368 million in the third quarter, versus a year earlier, with sales also likely to be slow in the fourth quarter.
Overall, Apria expects 2005 revenue to be 2% to 3% higher than a year earlier, down from a previous estimate of 5% to 6% growth.
Apria, which provides breathing treatments, drugs and medical equipment to patients in their homes, also said its profit would fall about 10% short of analysts’ expectations for 2005.
Shares of Apria were down 14% to $27 in Friday trading.
Meanwhile, Apria said it made a $17.6 million payment to settle a Medicare billing and that the government had dropped a second investigation into billing at some of its locations.
Four months ago Apria hired Morgan Stanley & Co. to find a buyer for the company. The company hasn’t indicated that it has received offers.
