By James Pilcher
The Cincinnati Enquirer

Kendle International Inc. on Thursday reported fourth-quarter profits of $513,000, which helped the downtown-based medical testing firm dramatically reduce its yearly loss compared with the year before, thanks in part to an ongoing effort to streamline.

For 2003, Kendle reported a loss of almost $1.7 million, or 13 cents a share, compared with a 2002 loss of $54.8 millionor $4.30 a share.

The fourth-quarter 2003 results of 4 cents a share compared with a fourth-quarter 2002 loss of almost $58.5 millionor $4.56 a share, although that quarter included a $67.7 million goodwill impairment charge.

"We are pretty pleased where we wound up for the quarter," company president and chief operating officer Chris Bergen said. The quarterly results beat the estimate of 1 cent a share by the one analyst who covers the company as surveyed by Nelson Information/Thomson Financial. But the annual loss was greater than the 7-cents-a-share loss predicted by that analyst.

Kendle's shares closed at $9.01, up $1.03, or 13 percent. It was a 52-week high for the stock.

Company officials did not provide any financial guidance for the coming quarter or the rest of the year.

The turnaround came despite a drop in overall revenues for the year, even though fourth-quarter revenues rose 9.6 percent ($36.6 million to $40.1 million). Annual revenues for 2003 were $156.2 million, down from $165.1 million in 2002.

Company officials cited their ongoing "Kendle 2004" initiative, which is streamlining Kendle's project management team, for the turnaround. The officials say the effort has created more experience in the managerial ranks and improved clinical expertise on project teams.

That initiative has also brought in a new chief marketing officer, Simon S. Higginbottom, from Europe and a new vice president in charge of Kendle's Americas division. Dr. Martha R. Feller came from Procter & Gamble's pharmaceutical division this week.

In addition, the company eliminated 65 positions in August.

Kendle International  

Fourth quarter	2003	2002
Revenues (millions)	$40.1	$36.6
Net income (loss)(millions)	$0.513	($58.5)
Earnings per share	$0.04	($4.56)
Full year	2003	2002
Revenues (loss)(millions)	$156.2	$165.2
Net income (loss)(millions)	($1.7)	($54.8)
Earnings per share	($0.13)	($4.30)

E-mail jpilcher@enquirer.com