Waters Corp.'s (WAT) third-quarter profit rose 6.1% amid prior-year charges while falling sales were more than offset by lower costs.

Results topped analysts' expectations, and Chairman and Chief Executive Douglas Berthiaume said markets showed signs of stabilization during the quarter. He also called customer interest in new products "encouraging."

The medical-equipment industry typically has been rather resilient in a recession. But sales have slowed industrywide, with hospitals and universities cutting purchases of routine supplies as cuts to research and capital-spending budgets have been crimped.

Waters reported a profit of $75.9 million, or 79 cents a share, up from $71.5 million, or 71 cents a share, a year earlier. Excluding acquisition and other costs, profit rose to 81 cents from 79 cents.

Sales fell 3.2% to $374 million, with one-third of the drop due to currency changes.

Analysts, on average, were looking for income of 77 cents on revenue of $364 million, according to a survey by Thomson Reuters.

Gross margin was flat at 59%. Overhead costs dropped 4.5% while interest costs slumped 54% and income-tax provisions fell 18%.

The company's shares closed Monday at $56.32 and were inactive premarket. The stock is up 49% the past year.

-By Jenny Park and Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; jenny.park@dowjones.com