Australia's API says H2 earnings below forecast

The drugs maker and retailer said it would achieve earnings before interest, tax and depreciation (EBITD) and before significant items of A$36.4 million ($31 million) for its second half ended April 30, below the A$39 million flagged in December.

The earnings are due to be released Thursday.

An expected A$8 million gain from selling some retail outlets had been delayed to the first quarter of the 2007/2008 year, the company said.

"API is back on track," said API Chairman Peter Robinson in a statement. "We are seeing the benefits of defining and focusing on our core businesses in increased sales."

In December, API posted what its chief executive called a terrible first-half net loss as it lost market share and costs rose. At the time it was assessing a takeover offer from Sigma Pharmaceuticals, which was later rejected.

API's shares were steady on Tuesday at A$2.33.

($1=A$1.18)