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| Hospira Reports Third-Quarter 2009 Results |
"Hospira delivered strong results in the third quarter, aided by the launch of the generic oncolytic oxaliplatin and additional progress toward our Project Fuel initiatives," said Christopher B. Begley, chairman and chief executive officer. "We continued to position Hospira for future success in this milestone quarter, during which we surpassed the billion dollar revenue mark for the first time and generated strong double-digit earnings per share growth. We remain confident in our projections for full-year sales and are increasing our earnings per share guidance." Third-Quarter 2009 Results The following table highlights selected financial results for the third quarter of 2009 compared to the same period in 2008:
In $ millions, GAAP Adjusted*
except per Three Months Ended Three Months Ended
share amounts September 30, September 30,
---------------- % ---------------- %
2009 2008 Change 2009 2008 Change
-------- ------ ------ ------ ------ ------
Net Sales $1,007.5 $925.5 8.9% n/a n/a n/a
Gross Profit
(Net Sales
less Cost of
Products Sold) $395.6 $333.8 18.5% $418.4 $355.5 17.7%
Income from
Operations $161.5 $132.7 21.7% $207.2 $161.5 28.3%
Diluted EPS $0.71 $0.51 39.2% $0.90 $0.63 42.9%
Statistics (as a % of Net Sales)
-------------------------------
Gross Profit
(Net Sales
less Cost of
Products Sold) 39.3% 36.1% 41.5% 38.4%
Income from
Operations 16.0% 14.3% 20.6% 17.5%
Results under U.S. Generally Accepted Accounting Principles (GAAP) include items detailed in the schedules attached to this press release. Net sales increased 8.9 percent to $1.0 billion in the third quarter of 2009, compared to $926 million in the third quarter of 2008. The growth was driven by an increase in Specialty Injectable Pharmaceuticals, primarily a result of the third-quarter launch of oxaliplatin in solution form in the United States. Adjusted* income from operations increased 28.3 percent to $207 million in the third quarter of 2009, compared to $162 million in the third quarter of 2008. Driving the majority of the increase were higher sales volumes and increased manufacturing efficiency. Partially offsetting these factors was the impact of certain product recall-related costs as well as the impact of foreign exchange. Cash Flow Cash flow from operations for the first nine months of 2009 was $541 million, compared to $329 million generated for the same period in 2008. Capital expenditures decreased to $119 million for the first nine months of 2009, compared to $127 million for the same period in 2008, due to the impact of the company's tighter capital-spending controls implemented in the second half of 2008. 2009 Projections Hospira continues to expect net sales for the year to increase approximately 5 to 7 percent on a constant-currency basis. Including the impact of foreign exchange, the company expects net sales to be slightly up. During the third quarter, Hospira recognized an income tax benefit on the expiration of statutes of limitation on certain unrecognized tax benefits. The tax benefit was partially offset by the tax effect of the U.S. launch of oxaliplatin. Based on these factors, the company is adjusting the guidance for its 2009 effective tax rate to 20 to 21 percent from the prior guidance of 21 to 22 percent. As a result, the company now expects full-year 2009 adjusted* diluted earnings per share to be between $2.85 and $2.90 per share. The reconciliation between the projected 2009 adjusted* diluted earnings per share and GAAP diluted earnings per share follows:
Diluted earnings per share -- adjusted* $2.85 - $2.90
-------------
Estimated charges related to Project Fuel
initiatives (mid-point of an estimated range of
$0.34 to $0.38 per diluted share for
non-impairment charges, plus incurred
year-to-date impairment and other asset
charges of $0.37 per diluted share) ($0.73)
Estimated charges related to facilities optimization
initiatives (mid-point of an estimated range of
$0.10 to $0.12 per diluted share) ($0.11)
Estimated $53 million for the amortization of
intangibles related to the Mayne Pharma acquisition ($0.23)
Impairment of marketable equity securities ($0.10)
Tax benefit from the settlement of a U.S. income tax audit $0.57
-------------
Diluted earnings per share -- GAAP $2.25 - $2.30
=============
The company now projects that cash flow from operations in 2009 will be in the $700 million to $750 million range. Depreciation and amortization is now expected to be between $225 million and $235 million. Capital expenditures are projected to be between $155 million and $175 million. *Use of Non-GAAP Adjusted Financial Measures Non-GAAP financial measures used in this press release are reconciled to the most comparable measures calculated in accordance with GAAP in the schedules attached to this release. Webcast Hospira will hold a conference call for investors and media at 8 a.m. Central time on Tuesday, Oct. 27, 2009. A live webcast of the conference call will be available on Hospira's Web site at www.hospirainvestor.com. Listeners should log on approximately 10 minutes in advance to ensure proper setup for receiving the webcast. A replay will be available on the Hospira Web site for 30 days following the call. About Hospira Hospira, Inc. is a global specialty pharmaceutical and medication delivery company dedicated to Advancing Wellness(TM). As the world leader in specialty generic injectable pharmaceuticals, Hospira offers one of the broadest portfolios of generic acute-care and oncology injectables, as well as integrated infusion therapy and medication management solutions. Through its products, Hospira helps improve the safety, cost and productivity of patient care. The company is headquartered in Lake Forest, Ill., and has approximately 14,000 employees. Learn more at www.hospira.com.
Private Securities Litigation Reform Act of 1995 --
A Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including projections of certain measures of Hospira's results of operations, projections of certain charges and expenses, and other statements regarding Hospira's goals and strategy. Hospira cautions that these forward-looking statements are subject to risks, uncertainties and assumptions, many of which are beyond Hospira's control, that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Hospira's operations and may cause actual results to be materially different from expectations include the risks, uncertainties and factors discussed under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Hospira's latest Annual Report on Form 10-K and subsequent Form 10-Qs, filed with the Securities and Exchange Commission, which are incorporated by reference. Hospira undertakes no obligation to release publicly any revisions to forward-looking statements as the result of subsequent events or developments.
Hospira, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(dollars and shares in millions, except for per share amounts)
Three Months Ended
September 30,
---------------- %
2009 2008 Change
-------- ------ ------
Net sales $1,007.5 $925.5 8.9 %
-------- ------
Cost of products sold 611.9 591.7 3.4 %
Restructuring and impairment 13.8 4.5 206.7 %
Research and development 57.9 51.0 13.5 %
Selling, general and administrative 162.4 145.6 11.5 %
-------- ------
Total operating cost and expenses 846.0 792.8 6.7 %
-------- ------
Income From Operations 161.5 132.7 21.7 %
Interest expense 25.1 27.6 (9.1)%
Other expense (income), net 0.1 (2.4) (104.2)%
-------- ------
Income Before Income Taxes 136.3 107.5 26.8 %
Income tax expense 20.1 25.7 (21.8)%
-------- ------
Net Income $116.2 $81.8 42.1 %
======== ======
Earnings Per Common Share:
Basic $0.72 $0.51 41.2 %
======== ======
Diluted $0.71 $0.51 39.2 %
======== ======
Weighted Average Common Shares Outstanding:
Basic 161.1 159.4 1.1 %
======== ======
Diluted 163.7 161.6 1.3 %
======== ======
Adjusted Gross Profit (1)(2) $418.4 $355.5 17.7 %
Adjusted Income From Operations (1) $207.2 $161.5 28.3 %
Adjusted Net Income (1) $147.4 $101.5 45.2 %
Adjusted Diluted Earnings Per Share (1) $0.90 $0.63 42.9 %
Statistics (as a % of net sales,
except for income tax rate):
GAAP Adjusted (1)
Three Months Ended Three Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Gross Profit (2) 39.3 % 36.1 % 41.5 % 38.4 %
Income From Operations 16.0 % 14.3 % 20.6 % 17.5 %
Net Income 11.5 % 8.8 % 14.6 % 11.0 %
Income Tax Rate 14.7 % 23.9 % 19.0 % 25.5 %
(1) Adjusted financial measures exclude certain specified items as
described and reconciled to comparable GAAP financial measures in the
Reconciliation of GAAP to Non-GAAP Financial Measures schedule.
(2) Gross profit is defined as Net sales less Cost of products sold.
Adjusted gross profit excludes certain specified items, as indicated in
the previous footnote.
Hospira, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(dollars and shares in millions, except for per share amounts)
Nine Months Ended
September 30,
------------------ %
2009 2008 Change
-------- -------- ------
Net sales $2,824.1 $2,715.8 4.0 %
-------- --------
Cost of products sold 1,762.7 1,729.8 1.9 %
Restructuring and impairment 79.1 13.8 473.2 %
Research and development 160.8 158.9 1.2 %
Acquired in-process research and
development - 0.5 (100.0)%
Selling, general and administrative 454.2 450.7 0.8 %
-------- --------
Total operating cost and expenses 2,456.8 2,353.7 4.4 %
-------- --------
Income From Operations 367.3 362.1 1.4 %
Interest expense 80.2 87.2 (8.0)%
Other expense (income), net 14.3 (6.5) (320.0)%
-------- --------
Income Before Income Taxes 272.8 281.4 (3.1)%
Income tax (benefit) expense (34.4) 65.1 (152.8)%
-------- --------
Net Income $307.2 $216.3 42.0 %
======== ========
Earnings Per Common Share:
Basic $1.92 $1.36 40.2 %
======== ========
Diluted $1.89 $1.34 41.3 %
======== ========
Weighted Average Common Shares Outstanding:
Basic 160.4 159.1 1.3 %
======== ========
Diluted 162.3 161.4 0.6 %
======== ========
Adjusted Gross Profit (1)(2) $1,123.8 $1,050.1 7.0 %
Adjusted Income From Operations (1) $533.8 $458.9 16.3 %
Adjusted Net Income (1) $362.4 $281.8 28.6 %
Adjusted Diluted Earnings Per Share (1) $2.23 $1.75 27.4 %
Statistics (as a % of net sales,
except for income tax rate):
GAAP Adjusted (1)
Nine Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Gross Profit (2) 37.6 % 36.3 % 39.8 % 38.7 %
Income From Operations 13.0 % 13.3 % 18.9 % 16.9 %
Net Income 10.9 % 8.0 % 12.8 % 10.4 %
Income Tax Rate (12.6)% 23.1 % 20.5 % 25.5 %
(1) Adjusted financial measures exclude certain specified items as
described and reconciled to comparable GAAP financial measures in the
Reconciliation of GAAP to Non-GAAP Financial Measures schedule.
(2) Gross profit is defined as Net sales less Cost of products sold.
Adjusted gross profit excludes certain specified items, as indicated in
the previous footnote.
Hospira, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(dollars and shares in millions, except for per share amounts)
The Non-GAAP financial measures contained in this press release (including
adjusted gross profit, adjusted income from operations, adjusted net
income, and adjusted diluted Earnings Per Share) adjust for certain
specified items. Management believes that Non-GAAP financial measures can
facilitate a more complete analysis and greater transparency into
Hospira's ongoing results of operations, particularly in comparing
underlying results from period to period. Management uses these Non-GAAP
financial measures internally in financial planning, to monitor business
unit performance, and in evaluating management performance. All Non-GAAP
financial measures are intended to supplement the applicable GAAP measures
and should not be considered in isolation from, or a replacement for,
financial measures prepared in accordance with GAAP. Hospira's Non-GAAP
financial measures may be different from Non-GAAP financial measures used
by other companies.
Three months ended September 30, 2009 Reconciliation of GAAP to Non-GAAP
Financial Measures:
------------------------------------------------------------------------
Income
Gross From Net Diluted
Profit (1) Operations Income EPS
--------- ---------- ------ -------
GAAP financial measures $395.6 $161.5 $116.2 $0.71
Specified items:
Project Fuel charges (A) 7.8 27.4 20.9 0.13
Facilities Optimization
charges (B) 1.5 4.8 3.1 0.02
Amortization of Mayne Pharma
intangible assets (C) 13.5 13.5 7.2 0.04
--------- ---------- ------ -------
Adjusted financial measures $418.4 $207.2 $147.4 $0.90
========= ========== ====== =======
GAAP results for the three months ended September 30, 2009 include:
A -- Project Fuel charges: $7.8 million reported in Cost of products
sold, $10.5 million reported in Restructuring and impairment,
$1.3 million reported in Research and development and $7.8 million
reported in Selling, general and administrative. These charges
relate to the Project Fuel initiatives and include costs for
severance and other employee benefits, process optimization
implementation, other asset charges, exit costs and charges
associated with certain non-strategic businesses and underlying
assets committed for disposal and the related inventory, property
and equipment, allocated goodwill and intangible assets.
B -- Facilities Optimization charges: $1.5 million reported in Cost of
products sold and $3.3 million reported in Restructuring and
impairment. These charges relate to facilities optimization from the
closure or departure from certain manufacturing and research and
development ("R&D") facilities and include costs for severance and
other employee benefits, accelerated depreciation and relocation of
production and R&D operations.
C -- Amortization of Mayne Pharma Limited ("Mayne Pharma") intangible
assets resulting from the Mayne Pharma acquisition is reported in
Cost of products sold.
Three months ended September 30, 2008 Reconciliation of GAAP to Non-GAAP
Financial Measures:
------------------------------------------------------------------------
Income
Gross From Net Diluted
Profit (1) Operations Income EPS
--------- ---------- ------ -------
GAAP financial measures $333.8 $132.7 $81.8 $0.51
Specified items:
Facilities Optimization
charges (A) 3.7 8.2 5.1 0.03
Amortization of Mayne Pharma
intangible assets (B) 15.2 15.2 10.1 0.06
Integration-related charges (C) 2.8 5.4 4.5 0.03
--------- ---------- ------ -------
Adjusted financial measures $355.5 $161.5 $101.5 $0.63
========= ========== ====== =======
GAAP results for the three months ended September 30, 2008 include:
A -- Facilities Optimization charges: $3.7 million reported in Cost of
products sold and $4.5 million reported in Restructuring and
impairment. These charges relate to facilities optimization from
the closure or departure from certain manufacturing and R&D
facilities and include costs for severance and other employee
benefits, accelerated depreciation and relocation of production and
R&D operations.
B -- Amortization of Mayne Pharma intangible assets is reported in Cost
of products sold.
C -- Integration-related charges: $2.8 million reported in Cost of
products sold, $0.2 million reported in Research and development and
$2.4 million reported in Selling, general and administrative. These
charges relate to the integration of Mayne Pharma and other
acquisitions into our operations and include costs for closure of
facilities, termination of lease agreements, severance and other
employee benefit costs.
(1) Gross profit is defined as Net sales less Cost of products sold.
Hospira, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(dollars and shares in millions, except for per share amounts)
The Non-GAAP financial measures contained in this press release (including
adjusted gross profit, adjusted income from operations, adjusted net
income, and adjusted diluted Earnings Per Share) adjust for certain
specified items. Management believes that Non-GAAP financial measures can
facilitate a more complete analysis and greater transparency into
Hospira's ongoing results of operations, particularly in comparing
underlying results from period to period. Management uses these Non-GAAP
financial measures internally in financial planning, to monitor business
unit performance, and in evaluating management performance. All Non-GAAP
financial measures are intended to supplement the applicable GAAP measures
and should not be considered in isolation from, or a replacement for,
financial measures prepared in accordance with GAAP. Hospira's Non-GAAP
financial measures may be different from Non-GAAP financial measures used
by other companies.
Nine months ended September 30, 2009 Reconciliation of GAAP to Non-GAAP
Financial Measures:
-----------------------------------------------------------------------
Income
Gross From Net Diluted
Profit (1) Operations Income EPS
--------- ---------- ------ -------
GAAP financial measures $1,061.4 $367.3 $307.2 $1.89
Specified items:
Project Fuel charges (A) 12.6 105.5 91.4 0.57
Facilities Optimization
charges (B) 8.9 20.1 13.2 0.08
Amortization of Mayne Pharma
intangible assets (C) 40.9 40.9 25.9 0.16
Impairment of marketable
equity securities (D) - - 16.6 0.10
Resolution of IRS tax audit
benefit (E) - - (91.9) (0.57)
--------- ---------- ------ -------
Adjusted financial measures $1,123.8 $533.8 $362.4 $2.23
========= ========== ====== =======
GAAP results for the nine months ended September 30, 2009 include:
A -- Project Fuel charges: $12.6 million reported in Cost of products
sold, $67.9 million reported in Restructuring and impairment,
$2.6 million reported in Research and development and $22.4 million
reported in Selling, general and administrative. These charges
relate to the Project Fuel initiatives and include costs for
severance and other employee benefits, process optimization
implementation, other asset charges, exit costs and charges
associated with certain non-strategic businesses and underlying
assets committed for disposal and the related inventory, property
and equipment, allocated goodwill and intangible assets.
B -- Facilities Optimization charges: $8.9 million reported in Cost of
products sold and $11.2 million reported in Restructuring and
impairment. These charges relate to facilities optimization from
the closure or departure from certain manufacturing and research and
development ("R&D") facilities and include costs for severance and
other employee benefits, accelerated depreciation and relocation of
production and R&D operations.
C -- Amortization of Mayne Pharma Limited ("Mayne Pharma") intangible
assets resulting from the Mayne Pharma acquisition is reported in
Cost of products sold.
D -- Impairment of marketable equity securities is reported in Other
expense (income), net.
E -- Resolution of IRS tax audit benefit of $91.9 million reported in
Income tax expense (benefit). This discrete income tax benefit is
related to the completion and effective settlement of Hospira's 2004
and 2005 U.S. tax return audits.
Nine months ended September 30, 2008 Reconciliation of GAAP to Non-GAAP
Financial Measures:
-----------------------------------------------------------------------
Income
Gross From Net Diluted
Profit (1) Operations Income EPS
--------- ---------- ------ -------
GAAP financial measures $986.0 $362.1 $216.3 $1.34
Specified items:
Facilities Optimization
charges (A) 11.5 25.9 16.0 0.10
Amortization of Mayne Pharma
intangible assets (B) 46.8 46.8 31.4 0.20
Integration-related charges (C) 5.8 23.6 17.6 0.11
Acquired in-process research
and development - 0.5 0.5 -
--------- ---------- ------ -------
Adjusted financial measures $1,050.1 $458.9 $281.8 $1.75
========= ========== ====== =======
GAAP results for the nine months ended September 30, 2008 include:
A -- Facilities Optimization charges: $11.5 million reported in Cost of
products sold, $13.8 million reported in Restructuring and
impairment and $0.6 million reported in Research and development.
These charges relate to facilities optimization from the closure or
departure from certain manufacturing and R&D facilities and include
costs for severance and other employee benefits, accelerated
depreciation and relocation of production and R&D operations.
B -- Amortization of Mayne Pharma intangible assets is reported in Cost
of products sold.
C -- Integration-related charges: $5.8 million reported in Cost of
products sold, $1.0 million reported in Research and development and
$16.8 million reported in Selling, general and administrative. These
charges relate to the integration of Mayne Pharma and other
acquisitions into our operations and include costs for closure of
facilities, termination of lease agreements, severance and other
employee benefit costs.
(1) Gross profit is defined as Net sales less Cost of products sold.
Hospira, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(dollars in millions)
September 30, December 31,
Assets 2009 2008
-------- --------
Current Assets:
Cash and cash equivalents $920.6 $483.8
Trade receivables, less allowances of
$6.9 in 2009 and $6.7 in 2008 594.1 583.4
Inventories 849.5 830.5
Deferred income taxes 214.9 172.2
Prepaid expenses and other current assets 38.5 35.7
Other receivables 54.6 43.7
-------- --------
Total Current Assets 2,672.2 2,149.3
-------- --------
Property and equipment, net 1,182.8 1,192.1
Intangible assets, net 404.3 404.4
Goodwill 1,213.5 1,167.4
Deferred income taxes 24.3 70.1
Investments 50.1 37.6
Other assets 67.0 53.2
-------- --------
Total Assets $5,614.2 $5,074.1
======== ========
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term borrowings $399.5 $338.3
Trade accounts payable 200.1 231.5
Salaries, wages and commissions 163.5 144.7
Deferred income taxes 0.1 1.5
Other accrued liabilities 412.8 331.5
-------- --------
Total Current Liabilities 1,176.0 1,047.5
-------- --------
Long-term debt 1,710.9 1,834.0
Deferred income taxes 23.1 25.2
Post-retirement obligations 167.1 195.5
Other long-term liabilities 92.0 195.5
Commitments and Contingencies
-------- --------
Total Shareholders' Equity 2,445.1 1,776.4
-------- --------
Total Liabilities and Shareholders' Equity $5,614.2 $5,074.1
======== ========
Hospira, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(dollars in millions)
Nine Months Ended
September 30,
---------------
2009 2008
------- ------
Cash Flow From Operating Activities:
Net income $307.2 $216.3
Adjustments to reconcile net income to net cash from
operating activities-
Depreciation 126.4 141.2
Amortization of intangible assets 45.9 51.1
Write-off of acquired in-process research and
development - 0.5
Stock-based compensation expense 31.5 33.2
Deferred income tax and other tax adjustments (84.3) 1.9
Impairment and other asset charges 83.4 -
Net gains on sales of assets - (3.0)
Changes in assets and liabilities-
Trade receivables 10.9 (75.8)
Inventories (17.7) (107.6)
Prepaid expenses and other assets 2.6 4.1
Trade accounts payable (34.2) 7.3
Other liabilities 90.6 37.1
Other, net (21.1) 22.3
------- ------
Net Cash Provided by Operating Activities 541.2 328.6
------- ------
Cash Flow From Investing Activities:
Capital expenditures (including instruments placed with
or leased to customers) (118.7) (126.9)
Acquisitions, net of cash acquired, and payments for
contingent consideration (20.7) (22.2)
Purchases of intangibles and other investments (9.3) (49.6)
Proceeds from disposition of businesses 30.5 -
Proceeds from disposition of assets - 0.8
Purchases of marketable equity securities - (24.5)
------- ------
Net Cash Used in Investing Activities (118.2) (222.4)
------- ------
Cash Flow From Financing Activities:
Issuance of long-term debt, net of fees paid 246.7 -
Repayment of long-term debt (306.1) (90.1)
Other borrowings, net 2.7 8.5
Excess tax benefit from stock-based compensation
arrangements 0.8 1.0
Proceeds from stock options exercised 59.3 27.4
------- ------
Net Cash Provided by (Used in) Financing Activities 3.4 (53.2)
------- ------
Effect of exchange rate changes on cash and cash
equivalents 10.4 (6.7)
------- ------
Net change in cash and cash equivalents 436.8 46.3
Cash and cash equivalents at beginning of period 483.8 241.1
------- ------
Cash and cash equivalents at end of period $920.6 $287.4
======= ======
Supplemental Cash Flow Information:
Cash paid during the period-
Interest $87.1 $96.6
Income taxes, net of refunds $25.7 $8.6
Hospira, Inc.
Net Sales by Product Line
(Unaudited)
(dollars in millions)
Three Months Ended September 30,
-----------------------------------
% Change % Change
at at
Actual Constant
2009 2008 Rates Rates (1)
-------- ------ ----- ---------
Americas--
Pharmaceuticals
Specialty Injectables $449.1 $341.1 31.7 % 32.3 %
Other Pharma 126.0 129.8 (2.9)% (2.0)%
-------- ------
575.1 470.9 22.1 % 22.8 %
Devices
Medication Management Systems 138.1 138.5 (0.3)% 0.9 %
Other Devices 90.2 96.3 (6.3)% (5.7)%
-------- ------
228.3 234.8 (2.8)% (1.8)%
Total Americas 803.4 705.7 13.8 % 14.6 %
Europe, Middle East & Africa--
Pharmaceuticals
Specialty Injectables 69.6 67.5 3.1 % 11.3 %
Other Pharma 25.6 41.3 (38.0)% (33.2)%
-------- ------
95.2 108.8 (12.5)% (5.6)%
Devices
Medication Management Systems 19.1 19.6 (2.6)% 3.6 %
Other Devices 15.3 18.2 (15.9)% (10.4)%
-------- ------
34.4 37.8 (9.0)% (3.2)%
Total Europe, Middle East & Africa 129.6 146.6 (11.6)% (5.0)%
Asia Pacific--
Pharmaceuticals
Specialty Injectables 57.0 57.3 (0.5)% 2.8 %
Other Pharma 5.8 4.5 28.9 % 35.6 %
-------- ------
62.8 61.8 1.6 % 5.2 %
Devices
Medication Management Systems 5.4 4.8 12.5 % 18.8 %
Other Devices 6.3 6.6 (4.5)% (4.5)%
-------- ------
11.7 11.4 2.6 % 5.3 %
Total Asia Pacific 74.5 73.2 1.8 % 5.2 %
-------- ------
Net Sales $1,007.5 $925.5 8.9 % 10.8 %
======== ======
Global--
Pharmaceuticals
Specialty Injectables $575.7 $465.9 23.6 % 25.6 %
Other Pharma 157.4 175.6 (10.4)% (8.4)%
-------- ------
733.1 641.5 14.3 % 16.3%
Devices
Medication Management Systems 162.6 162.9 (0.2)% 1.7 %
Other Devices 111.8 121.1 (7.7)% (6.4)%
-------- ------
274.4 284.0 (3.4)% (1.7)%
-------- ------
Net Sales $1,007.5 $925.5 8.9 % 10.8 %
======== ======
Nine Months Ended September 30,
-----------------------------------
% Change % Change
at at
Actual Constant
2009 2008 Rates Rates (1)
-------- -------- ----- ---------
Americas--
Pharmaceuticals
Specialty Injectables $1,150.7 $981.7 17.2 % 18.6 %
Other Pharma 403.2 374.4 7.7 % 9.7 %
-------- --------
1,553.9 1,356.1 14.6 % 16.1 %
Devices
Medication Management Systems 411.7 418.3 (1.6)% 0.5 %
Other Devices 274.2 282.7 (3.0)% (1.4)%
-------- --------
685.9 701.0 (2.2)% (0.3)%
Total Americas 2,239.8 2,057.1 8.9 % 10.5 %
Europe, Middle East & Africa--
Pharmaceuticals
Specialty Injectables 195.3 224.2 (12.9)% (0.1)%
Other Pharma 88.7 120.3 (26.3)% (14.5)%
-------- --------
284.0 344.5 (17.6)% (5.1)%
Devices
Medication Management Systems 55.7 59.3 (6.1)% 5.7 %
Other Devices 49.5 52.2 (5.2)% 7.1 %
-------- --------
105.2 111.5 (5.7)% 6.4 %
Total Europe, Middle East & Africa 389.2 456.0 (14.6)% (2.3)%
Asia Pacific--
Pharmaceuticals
Specialty Injectables 149.0 155.3 (4.1)% 9.3 %
Other Pharma 12.1 12.1 0.0 % 19.8 %
-------- --------
161.1 167.4 (3.8)% 10.1 %
Devices
Medication Management Systems 15.0 15.5 (3.2)% 7.7 %
Other Devices 19.0 19.8 (4.0)% 2.0 %
-------- --------
34.0 35.3 (3.7)% 4.5 %
Total Asia Pacific 195.1 202.7 (3.7)% 9.1 %
-------- --------
Net Sales $2,824.1 $2,715.8 4.0 % 8.3 %
======== ========
Global--
Pharmaceuticals
Specialty Injectables $1,495.0 $1,361.2 9.8 % 14.4 %
Other Pharma 504.0 506.8 (0.6)% 4.2 %
-------- --------
1,999.0 1,868.0 7.0 % 11.7 %
Devices
Medication Management Systems 482.4 493.1 (2.2)% 1.4 %
Other Devices 342.7 354.7 (3.4)% 0.0 %
-------- --------
825.1 847.8 (2.7)% 0.8 %
-------- --------
Net Sales $2,824.1 $2,715.8 4.0 % 8.3 %
======== ========
(1) The Non-GAAP financial measures contained in this press release
include comparisons at constant currency rates (reflecting comparative
local currency balances at prior period foreign exchange rates), which we
define as current period net sales excluding the impact of the change in
foreign exchange rates less prior period reported net sales divided by
prior period reported net sales. This financial measure provides
information on the change in net sales assuming that foreign currency
exchange rates have not changed between the prior and the current period.
Management believes the use of this financial measure aids in the
understanding of our change in net sales without the impact of foreign
currency. All Non-GAAP financial measures are intended to supplement the
applicable GAAP measures and should not be considered in isolation
from, or a replacement for, financial measures prepared in accordance
with GAAP.
Hospira, Inc.
Segment Information
(Unaudited)
(dollars in millions)
Three Months Ended September 30,
---------------------------------------------------------
Net Sales Income (Loss) from Operations
--------------- % ---------------------- %
2009 2008 Change 2009 2008 Change
-------- ------ ------ ------ ------ ------
Americas $803.4 $705.7 13.8 % $193.4 A $151.1 A 28.0 %
Europe, Middle
East & Africa 129.6 146.6 (11.6)% (1.7) B 4.4 B (138.6)%
Asia Pacific 74.5 73.2 1.8 % 3.5 C 6.4 C (45.3)%
-------- ------ ------ ------
Total reportable
segments $1,007.5 $925.5 8.9 % 195.2 161.9 20.6 %
======== ======
Corporate
functions (24.9) D (20.5) D 21.5 %
Stock-based
compensation (8.8) (8.7) 1.1 %
---- ----
Income from
operations 161.5 132.7 21.7 %
Interest expense
and other expense
(income), net (25.2) (25.2) 0.0 %
------ ------
Income before
income taxes $136.3 $107.5 26.8 %
====== ======
Included in the reported Income before income
taxes above, are the following charges:
A -- Americas
Project Fuel $22.2 $ -
Facilities Optimization 4.8 8.2
Amortization of Mayne Pharma
intangible assets 3.8 4.8
Integration-related - 0.8
------ ------
Total Americas 30.8 13.8
B -- Europe, Middle East & Africa
Project Fuel 0.7 -
Amortization of Mayne Pharma
intangible assets 5.5 5.8
Integration-related - 0.7
------ ------
Total Europe, Middle East & Africa 6.2 6.5
C -- Asia Pacific
Project Fuel 0.6 -
Amortization of Mayne Pharma
intangible assets 4.2 4.6
Integration-related - 2.9
------ ------
Total Asia Pacific 4.8 7.5
D -- Corporate functions
Project Fuel 3.9 -
Integration-related - 1.0
------ ------
Total Corporate functions 3.9 1.0
------ ------
Total $45.7 $28.8
====== ======
Hospira, Inc.
Segment Information
(Unaudited)
(dollars in millions)
Nine Months Ended September 30,
----------------------------------------------------------
Net Sales Income from Operations
---------------- % ----------------- %
2009 2008 Change 2009 2008 Change
-------- -------- ------ ------ ------ ------
Americas $2,239.8 $2,057.1 8.9 % $451.6 A $426.0 A 6.0 %
Europe, Middle
East & Africa 389.2 456.0 (14.6)% 9.6 B 10.7 B (10.3)%
Asia Pacific 195.1 202.7 (3.7)% 3.9 C 13.6 C (71.3)%
-------- -------- ------ ------
Total reportable
segments $2,824.1 $2,715.8 4.0 % 465.1 450.3 3.3 %
======== ========
Corporate
functions (66.3) D (55.0) D 20.5 %
Stock-based
compensation (31.5) (33.2) (5.1)%
------ ------
Income from
operations 367.3 362.1 1.4 %
Interest expense
and other expense
(income), net (94.5) E (80.7) E 17.1 %
------ ------
Income before
income taxes $272.8 $281.4 (3.1)%
====== ======
Included in the reported Income before income
taxes above, are the following charges:
A -- Americas
Project Fuel $82.0 $ -
Facilities Optimization 20.1 25.9
Amortization of Mayne Pharma
intangible assets 13.1 15.0
Integration-related - 2.1
Acquired in-process research
and development - 0.5
------ ------
Total Americas 115.2 43.5
B -- Europe, Middle East & Africa
Project Fuel 4.0 -
Amortization of Mayne Pharma
intangible assets 16.1 17.7
Integration-related - 10.1
------ ------
Total Europe, Middle East & Africa 20.1 27.8
C -- Asia Pacific
Project Fuel 9.3 -
Amortization of Mayne Pharma
intangible assets 11.7 14.1
Integration-related - 6.7
------ ------
Total Asia Pacific 21.0 20.8
D -- Corporate functions
Project Fuel 10.2 -
Integration-related - 4.7
------ ------
Total Corporate functions 10.2 4.7
E -- Interest expense and other expense
(income), net
Impairment of marketable equity
securities 16.6 -
------ ------
Total Interest expense and other expense
(income), net 16.6 -
------ ------
Total $183.1 $96.8
====== ======
SOURCE Hospira, Inc. http://www.hospira.com |