By Mike Boyer
Enquirer staff writer

Hillenbrand Industries Inc., the Batesville, Ind., hospital bed and casket maker, reported lower fiscal third-quarter earnings Thursday despite higher revenues.

For the three months ended June 30, Hillenbrand said income from continuing operations slipped to $45 million, or 71 cents a share, from $52 million, or 84 cents a share, a year ago. The latest quarter included 6 cents a share of debt repurchase costs, and the year-ago period included 10 cents a share for restructuring charges.

Including discontinued operations, Hillenbrand's third-quarter net income was $39 million, or 62 cents a share, compared with $62 million, or $1 a share a year ago. Analysts had expected earnings of 74 cents a share.

Higher raw material costs, particularly steel, sluggish orders for its Hill-Rom unit's new bed line and costs from acquisitions contributed to the lower third-quarter results, the company said.

Revenues rose 8 percent to $461 million from $426 million a year ago.

"While our earnings were with our range of previous guidance, we can and we intend to do better," CEO Frederick Rockwood said.

On the plus side, he said, the company completed the sale of its Forethought Financial Services and Hill-Rom infant care businesses.

The company expects to earn 92 cents to 97 cents a share in the current quarter and report full-year earnings of $3.25 to $3.30 a share.

Shares in Hillenbrand closed at $56.85, up 74 cents.

In other earnings news:

Kendle International

Kendle International reported $211 million in net earnings Thursday for the quarter ended June 30.

The Cincinnati-based pharmaceutical company lost $423 million in the same period last year. Second-quarter revenue was flat at $53.2 million. Kendle booked an additional $48,000 in severance costs stemming from the March layoff of 990 employees while reclaiming $106,000 in excessive severance charges taken for a layoff in March 2003.

Kendle has 553 employees at its headquarters downtown, 1,700 worldwide. Its stock closed at $6.93, down 18 cents.

Unova Inc.

Unova, the parent of Hebron's Cincinnati Lamb machine-tool unit, reported net income of $5.6 million, or 9 cents a share, in the second quarter, compared with a loss of $800,000, or 1 cent a share, a year ago. Revenues for the three months ended June 30 rose to $304 million from $279.7 million a year ago.

The industrial automation systems business, which includes Cincinnati Lamb, reported an operating profit of $3 million in the quarter compared with an operating loss of $8.2 million a year ago.

Shares in Unova closed at $16.76, down 7 cents.

Cheviot Financial Corp.

Higher expenses caused the parent of Cheviot Savings Bank to post a 12.7 percent drop in second-quarter profits.

Cheviot earned $590,000, or 6 cents a share, down from $676,000 in second quarter 2003. It did not have a per-share figure for last year's second quarter because the company went public in January.

The drop in Cheviot's earnings primarily came from a $333,000 rise in general and administrative expenses, which was partially offset by a $227,000 increase in net interest income.

Shares in Cheviot closed at $10.92, up 26 cents.

Staff writers James McNair and Jeff McKinney contributed. E-mail mboyer@enquirer.com