Drug and nutritional product company American Oriental Bioengineering Inc. said Monday its profit fell 40 percent in the third quarter as its cost of sales and operating expenses jumped.
The China-based company posted a profit of $10.2 million, or 13 cents per share, down from $16.9 million, or 21 cents per share, a year ago. Revenue increased 12 percent to $78.8 million from $70.6 million.
Pharmaceutical product revenue rose 6 percent to $66 million while nutritional product sales rose 9 percent to $9.2 million. However, the cost of sales surged 48 percent to $34.7 million while operating expenses rose 14 percent to $29.1 million.
Shares of American Oriental Bioengineering fell 39 cents, or 9 percent, to $3.90 in after-hours trading after gaining 20 cents, or 4.9 percent, to close at $4.29 during the regular trading session.