LAKE FOREST, Ill., April 26, 2011 /PRNewswire/ -- Hospira, Inc.
(NYSE: HSP), a leading global specialty pharmaceutical and
medication delivery company, today reported results for the first
quarter ended March 31, 2011. Net
sales for the quarter were $1.0
billion, and adjusted* diluted earnings per share were
$0.93. (Adjusted* measures exclude
certain specified items as described later in this press release
and the attached schedules.)
"Hospira started out the year with a stronger-than-expected
first quarter, aided by strong U.S. sales of docetaxel and
gemcitabine, two major oncolytic pharmaceuticals," said
Christopher B. Begley, executive
chairman and former chief executive officer (CEO). "During the
quarter, we gained momentum on several of our existing and newly
launched specialty pharmaceuticals and made good progress in
decreasing our level of backorders to better serve our customers.
We remain focused on driving quality enhancements throughout the
organization and on improving shareholder value through strong
execution and sustainable growth."
Continued Begley, "During the quarter, we also welcomed new CEO
F. Michael Ball, who joined Hospira
on March 28. Mike is the perfect fit
for Hospira, and after his first few weeks with us, I am even more
confident he is the right person to lead the company and build on
all we have accomplished over the past seven years."
First-Quarter 2011 Results
The following table highlights selected financial results for
the first quarter of 2011 compared to the same period in 2010:
In $ millions,
except per share
amounts
|
GAAP
Three Months Ended
March 31,
|
|
Adjusted*
Three Months Ended
March 31,
|
|
|
|
2011
|
2010
|
%
Change
|
2011
|
2010
|
%
Change
|
|
Net Sales
|
$1,002.3
|
$1,007.6
|
(0.5)%
|
n/a
|
n/a
|
n/a
|
|
Gross Profit (Net Sales less
Cost of Products
Sold)
|
$399.1
|
$430.3
|
(7.3)%
|
$424.3
|
$454.7
|
(6.7)%
|
|
Income from
Operations
|
$163.8
|
$207.6
|
(21.1)%
|
$203.4
|
$239.9
|
(15.2)%
|
|
Diluted EPS
|
$0.88
|
$0.84
|
4.8%
|
$0.93
|
$0.94
|
(1.1)%
|
|
Statistics (as a % of Net
Sales)
|
|
Gross Profit (Net Sales
less
Cost of Products
Sold)
|
39.8%
|
42.7%
|
|
42.3%
|
45.1%
|
|
|
Income from
Operations
|
16.3%
|
20.6%
|
|
20.3%
|
23.8%
|
|
|
|
|
|
|
|
|
|
Results under U.S. Generally Accepted Accounting Principles
(GAAP) include items as detailed in the schedules attached to this
press release.
Net sales were $1.0 billion in the
first quarter of 2011, relatively flat with the first quarter of
2010. Although Specialty Injectable Pharmaceuticals (SIP) delivered
strong performance in the first quarter of 2011, driven mainly by
the U.S. net sales of the recently launched generic oncolytic
docetaxel and several other recently launched compounds, the
year-over-year comparison was made difficult because of the benefit
realized in the first quarter of 2010 from the U.S. net sales
impact of generic oncolytic oxaliplatin, which Hospira temporarily
discontinued in mid-2010.
Adjusted* income from operations decreased 15 percent to
$203 million in the first quarter of
2011, compared to $240 million in the
first quarter of 2010. The decline was a result of a difficult
year-over-year comparison driven by strong margin contribution from
U.S. net sales of oxaliplatin in the first quarter of 2010.
Improved manufacturing efficiency from the company's Project
Fuel optimization initiatives and margin contribution from U.S.
sales of docetaxel in the first quarter of 2011 were tempered by
the joint-venture arrangement related to the production of
docetaxel, as well as by higher research and development expenses
associated with new product development programs.
The effective tax rate on an adjusted basis* in the quarter was
23.0 percent compared to 27.1 percent in the first quarter of 2010.
The decrease primarily reflects the impact of the renewal by the
U.S. federal government of several tax extender bills that were not
in effect in the first quarter of 2010.
Cash Flow
Cash flow from operations for the first quarter resulted in an
inflow of $6 million. Higher
inventory levels and accounts receivables related to U.S. sales of
docetaxel somewhat offset the otherwise strong operating
performance in the quarter.
Capital expenditures were $62
million for the first quarter of 2011, compared to
$41 million for the same period in
2010. The increase is primarily associated with investments related
to manufacturing optimization and information technology (IT)
initiatives.
Stock Repurchase Authorization
On April 25, 2011, Hospira
announced that its board of directors authorized the repurchase of
up to $1.0 billion in common stock.
The multi-year program reaffirms Hospira's commitment to return
value to its shareholders, yet provides the flexibility to reinvest
in the business and pursue future growth opportunities. The company
recently completed a $400 million
share repurchase authorization initiated in 2006.
2011 Projections
Hospira is maintaining guidance for net sales growth of
approximately 5 to 7 percent on a constant-currency basis, with
foreign exchange expected to contribute a positive 1 percent.
Adjusted* diluted earnings per share projections for full-year
2011 remain between $3.90 and $4.00
per share, or year-over-year growth of 18 to 21 percent.
The reconciliation between the projected 2011 adjusted* diluted
earnings per share and GAAP diluted earnings per share follows:
Diluted earnings per share --
adjusted*
|
$3.90 - $4.00
|
|
|
|
|
Charges related to Project Fuel
initiatives
|
|
|
completed in March
2011
|
($0.04)
|
|
|
|
|
Charges related to facilities optimization initiatives
|
($0.01)
|
|
|
|
|
Charges related to certain Latin
America
|
|
|
distributor
operations
|
($0.03)
|
|
|
|
|
Tax benefit from the settlement
of a
|
|
|
U.S. income tax audit
|
$0.12
|
|
|
|
|
Estimated $70 million for the
amortization and impairment
|
|
|
of intangible assets related to
certain acquisitions
|
($0.27)
|
|
|
|
|
Diluted earnings per share --
GAAP
|
$3.67 -
$3.77
|
|
|
|
The adjusting items are shown net of tax in aggregate of
$28 million, which is calculated for
the specified adjustments stated above, based on the statutory tax
rate in the various tax jurisdictions in which the items are
expected to occur.
The company is maintaining its guidance for cash flow from
operations to range between $650 million and
$700 million. Depreciation and amortization also remain
unchanged, in the range of $230 million to
$250 million. Capital expenditures are now projected to
range between $375 million and $400
million as a result of capacity expansion efforts.
*Use of Non-GAAP Financial Measures
Adjusted 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. For more information
regarding these non-GAAP financial measures, please see Hospira's
Current Report on Form 8-K furnished to the Securities and Exchange
Commission on the date of this press release.
Webcast/Complementary Material
Hospira will hold a conference call for investors and media at
8 a.m. Central time on Tuesday, April 26, 2011. A simultaneous webcast
of the conference call will be available on Hospira's website at
www.hospirainvestor.com. Listeners should log on approximately 10
minutes in advance to ensure proper setup for receiving the
webcast. In addition, complementary information will be available
on the presentations page of the Investor Relations website at the
beginning of the conference call. A replay will be available on the
website for 30 days following the call.
About Hospira
Hospira, Inc. is a global specialty pharmaceutical and
medication delivery company dedicated to Advancing Wellness™. 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,
cash flow and other statements regarding Hospira's goals and
strategy. Hospira cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially from those indicated in the
forward-looking statements. Economic, competitive, governmental,
regulatory, legal, 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 Forms 10-Q, 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 March 31,
|
|
|
%
Change
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
Net sales
|
|
|
|
$
1,002.3
|
|
|
$
1,007.6
|
|
|
(0.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
|
603.2
|
|
|
577.3
|
|
|
4.5%
|
|
|
Restructuring, impairment and (gain) on disposition of assets, net
|
|
13.2
|
|
|
(7.6)
|
|
|
(273.7)%
|
|
|
Research and
development
|
|
|
|
56.9
|
|
|
51.7
|
|
|
10.1%
|
|
|
Selling, general and
administrative
|
|
|
|
165.2
|
|
|
178.6
|
|
|
(7.5)%
|
|
|
Total operating
costs and expenses
|
|
|
|
838.5
|
|
|
800.0
|
|
|
4.8%
|
|
|
|
Income From
Operations
|
|
|
|
163.8
|
|
|
207.6
|
|
|
(21.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
23.4
|
|
|
23.4
|
|
|
-%
|
|
|
Other income, net
|
|
|
|
(2.2)
|
|
|
(1.2)
|
|
|
83.3%
|
|
|
|
Income Before Income
Taxes
|
|
|
|
142.6
|
|
|
185.4
|
|
|
(23.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
9.9
|
|
|
44.2
|
|
|
(77.6)%
|
|
|
Equity income from affiliates,
net
|
|
|
|
(17.2)
|
|
|
(0.5)
|
|
|
nm%
|
|
|
|
Net Income
|
|
|
|
$
149.9
|
|
|
$
141.7
|
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
0.90
|
|
|
$
0.86
|
|
|
4.7%
|
|
|
Diluted
|
|
|
|
$
0.88
|
|
|
$
0.84
|
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares
Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
166.8
|
|
|
164.1
|
|
|
1.6%
|
|
|
Diluted
|
|
|
|
170.2
|
|
|
169.3
|
|
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Profit
(1)(2)
|
|
|
|
$
424.3
|
|
|
$
454.7
|
|
|
(6.7)%
|
|
|
Adjusted Income From Operations
(1)
|
|
|
|
$
203.4
|
|
|
$
239.9
|
|
|
(15.2)%
|
|
|
Adjusted Net Income
(1)
|
|
|
|
$
157.5
|
|
|
$
159.4
|
|
|
(1.2)%
|
|
|
Adjusted Diluted Earnings Per
Share (1)
|
|
|
|
$
0.93
|
|
|
$
0.94
|
|
|
(1.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics (as a % of net sales,
except for income tax rate):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Three
Months Ended March 31,
|
|
|
Adjusted (1)
Three Months Ended March 31,
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Gross Profit (2)
|
39.8%
|
|
|
42.7%
|
|
|
42.3%
|
|
|
45.1%
|
|
|
Income From
Operations
|
16.3%
|
|
|
20.6%
|
|
|
20.3%
|
|
|
23.8%
|
|
|
Net Income
|
15.0%
|
|
|
14.1%
|
|
|
15.7%
|
|
|
15.8%
|
|
|
Income Tax Rate
|
6.9%
|
|
|
23.8%
|
|
|
23.0%
|
|
|
27.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 contained
in this press release.
|
|
(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.
|
|
nm - Percentage change is not
meaningful.
|
|
|
|
Hospira,
Inc.
|
|
Reconciliation of GAAP to
Non-GAAP Financial Measures
|
|
(Unaudited)
|
|
(dollars and
shares in millions, except for per share amounts)
|
|
|
|
|
|
Three months ended March 31,
2011 Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (1)
|
|
Income From
Operations
|
|
Net Income (2)
|
|
Diluted EPS
|
|
GAAP financial measures
|
$
399.1
|
|
$
163.8
|
|
$
149.9
|
|
$
0.88
|
|
Specified items:
|
|
|
|
|
|
|
|
|
Project Fuel and related
charges (A)
|
5.0
|
|
9.6
|
|
6.3
|
|
0.04
|
|
Facilities Optimization
charges (B)
|
0.8
|
|
1.1
|
|
0.7
|
|
0.01
|
|
Amortization and
impairment of certain intangible assets (C)
|
19.4
|
|
21.1
|
|
14.5
|
|
0.09
|
|
Other restructuring
charges (D)
|
-
|
|
7.8
|
|
5.8
|
|
0.03
|
|
Settlement of IRS tax
audit benefit (E)
|
-
|
|
-
|
|
(19.7)
|
|
(0.12)
|
|
Adjusted financial measures
(3)
|
$
424.3
|
|
$
203.4
|
|
$
157.5
|
|
$
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP results for the three
months ended March 31, 2011 include:
|
|
|
(A)
|
Project Fuel and related charges: $5.0 million reported in Cost of products sold, $3.4 million reported in Restructuring, impairment and (gain) on disposition of assets, net
and $1.2 million reported in Selling, general and administrative.
Project Fuel initiatives include costs for process optimization
implementation, severance and other employee benefits, exit costs,
and other asset charges.
|
|
|
(B)
|
Facilities Optimization charges:
$0.8 million reported in Cost of products sold and $0.3 million
reported in Restructuring, impairment and (gain) on disposition of
assets, net. 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 and impairment of certain intangible assets: $19.4 million reported in Cost of products sold and $1.7 million reported in Restructuring, impairment and (gain) on
disposition of assets, net resulting from acquisitions including
Mayne Pharma Limited ("Mayne Pharma"), Javelin
Pharmaceuticals, Inc. ("Javelin Pharma") and a generic
injectable business by Hospira Healthcare India Private Limited
(“Hospira India”).
|
|
|
(D)
|
Other restructuring charges:
$7.8 million reported in Restructuring, impairment and (gain) on
disposition of assets, net for distribution contract termination
charges related to certain Latin America operations.
|
|
|
(E)
|
Settlement of IRS tax audit
benefit of $19.7 million reported in Income tax expense. This
discrete income tax benefit is related to the completion and
effective settlement of U.S. tax return audits.
|
|
|
|
|
Three months ended March 31,
2010 Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (1)
|
|
Income From
Operations
|
|
Net Income (2)
|
|
Diluted EPS
|
|
GAAP financial measures
|
$
430.3
|
|
$
207.6
|
|
$
141.7
|
|
$
0.84
|
|
Specified items:
|
|
|
|
|
|
|
|
|
Project Fuel and related
charges(A)
|
3.7
|
|
(1.4)
|
|
(4.6)
|
|
(0.03)
|
|
Facilities Optimization
charges (B)
|
2.0
|
|
3.0
|
|
2.1
|
|
0.01
|
|
Amortization of certain
intangible assets (C)
|
18.7
|
|
18.7
|
|
12.6
|
|
0.08
|
|
Acquisition and
integration-related charges (D)
|
-
|
|
12.0
|
|
7.6
|
|
0.04
|
|
Adjusted financial measures
(3)
|
$
454.7
|
|
$
239.9
|
|
$
159.4
|
|
$
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP results for the three
months ended March 31, 2010 include:
|
|
|
(A)
|
Project Fuel and related
charges: $3.7 million reported in Cost of products sold, $(8.6)
million reported in Restructuring, impairment and (gain) on
disposition of assets, net, $0.2 million reported in Research and
development and $3.3 million reported in Selling, general and
administrative. Project Fuel initiatives include costs for process
optimization implementation, severance and other employee benefits,
exit costs, and other asset charges. These charges are offset by a
$11.4 million gain reported in Restructuring, impairment and (gain)
on disposition of assets, net related to the disposal of the
non-strategic net assets associated with the Wasserburg, Germany,
facility.
|
|
|
(B)
|
Facilities Optimization charges: $2.0 million reported in Cost of products sold and $1.0 million reported in Restructuring,
impairment
and (gain) on disposition of assets, net. 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 certain intangible assets reported in Cost of products sold resulting from acquisitions including Mayne Pharma and a
generic injectable business by Hospira India.
|
|
|
(D)
|
Acquisition and
integration-related charges: $1.0 million reported in Research and
development and $11.0 million reported in Selling, general and
administrative. These charges include acquisition and integration
costs related to the acquisition by Hospira India.
|
|
|
|
(1)
|
Gross profit is defined as Net
sales less Cost of products sold.
|
|
(2)
|
Adjusted Net Income is shown net
of tax of $32.0 million and $14.8 million for the three months
ended March 31, 2011 and 2010, respectively, based on the statutory
tax rate in the various tax jurisdictions in which the adjustments
occurred.
|
|
(3)
|
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. 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. Refer to Hospira’s filing on Form 8-K
filed on April 26, 2011 for additional information.
|
|
|
|
|
|
|
|
Hospira,
Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
March
31,
2011
|
|
December
31,
2010
|
|
Assets
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
597.1
|
|
$
604.3
|
|
|
Trade receivables, less allowances of $10.5 in 2011 and $8.2 in 2010
|
719.6
|
|
605.0
|
|
|
Inventories
|
1,072.7
|
|
955.5
|
|
|
Deferred income taxes
|
161.0
|
|
165.2
|
|
|
Prepaid expenses
|
43.8
|
|
43.6
|
|
|
Other receivables
|
74.4
|
|
103.9
|
|
|
Total Current Assets
|
2,668.6
|
|
2,477.5
|
|
Property and equipment,
net
|
1,296.4
|
|
1,279.2
|
|
Intangible assets,
net
|
509.2
|
|
527.7
|
|
Goodwill
|
1,491.2
|
|
1,471.2
|
|
Deferred income taxes
|
174.3
|
|
161.0
|
|
Investments
|
83.1
|
|
64.7
|
|
Other assets
|
67.1
|
|
65.0
|
|
|
Total Assets
|
$
6,289.9
|
|
$
6,046.3
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
Short-term borrowings
|
$
34.9
|
|
$
33.5
|
|
|
Trade accounts
payable
|
291.1
|
|
320.7
|
|
|
Salaries, wages and
commissions
|
112.4
|
|
136.0
|
|
|
Other accrued
liabilities
|
492.4
|
|
441.4
|
|
|
Total Current Liabilities
|
930.8
|
|
931.6
|
|
Long-term debt
|
1,710.6
|
|
1,714.4
|
|
Deferred income taxes
|
4.3
|
|
4.4
|
|
Post-retirement obligations and
other long-term liabilities
|
190.3
|
|
212.4
|
|
Commitments and
Contingencies
|
|
|
|
|
Total Shareholders'
Equity
|
3,453.9
|
|
3,183.5
|
|
Total Liabilities and
Shareholders' Equity
|
$
6,289.9
|
|
$
6,046.3
|
|
|
|
|
|
|
Hospira,
Inc.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Cash Flow From Operating
Activities:
|
|
|
|
|
Net income
|
$ 149.9
|
|
$ 141.7
|
|
Adjustments to reconcile
net income to net cash from operating activities-
|
|
|
|
|
Depreciation
|
40.8
|
|
39.1
|
|
Amortization of
intangible assets
|
22.2
|
|
21.5
|
|
Stock-based
compensation expense
|
13.7
|
|
17.3
|
|
Undistributed
equity income from affiliates
|
(17.2)
|
|
(0.5)
|
|
Deferred income
taxes and other tax adjustments
|
(15.1)
|
|
22.3
|
|
Impairment and
other asset charges
|
6.8
|
|
-
|
|
Gain on disposition
of assets
|
-
|
|
(11.4)
|
|
Changes in assets and
liabilities-
|
|
|
|
|
Trade
receivables
|
(100.8)
|
|
(141.2)
|
|
Inventories
|
(115.1)
|
|
(11.2)
|
|
Prepaid expenses
and other assets
|
6.7
|
|
(7.3)
|
|
Trade accounts
payable
|
(27.5)
|
|
18.1
|
|
Other
liabilities
|
44.0
|
|
(94.6)
|
|
Other, net
|
(2.3)
|
|
0.5
|
|
Net Cash
Provided by (Used in) Operating Activities
|
6.1
|
|
(5.7)
|
|
|
|
|
|
|
Cash Flow From Investing Activities:
|
|
|
|
|
Capital expenditures
(including instruments placed with or leased to
customers)
|
(62.2)
|
|
(40.6)
|
|
Acquisition, net of cash
acquired
|
-
|
|
(381.0)
|
|
Purchases of intangibles
and other investments
|
(2.5)
|
|
(8.7)
|
|
Proceeds from disposition
of businesses and assets
|
13.3
|
|
62.6
|
|
Net Cash Used in
Investing Activities
|
(51.4)
|
|
(367.7)
|
|
|
|
|
|
|
Cash Flow From Financing
Activities:
|
|
|
|
|
Other borrowings,
net
|
0.4
|
|
0.1
|
|
Excess tax benefit from
stock-based compensation arrangements
|
4.6
|
|
7.9
|
|
Proceeds from stock
options exercised
|
26.8
|
|
67.3
|
|
Net Cash Provided
by Financing Activities
|
31.8
|
|
75.3
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
6.3
|
|
(1.6)
|
|
|
|
|
|
|
Net change in cash and cash
equivalents
|
(7.2)
|
|
(299.7)
|
|
Cash and cash equivalents at
beginning of period
|
604.3
|
|
946.0
|
|
Cash and cash equivalents at end
of period
|
$ 597.1
|
|
$ 646.3
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
Cash paid (received) during the
period-
|
|
|
|
|
Interest
|
$ 31.0
|
|
$ 30.5
|
|
Income taxes, net of
refunds
|
$ (21.0)
|
|
$ 21.0
|
|
|
|
|
|
Hospira,
Inc.
|
|
Net Sales by
Product Line
|
|
(Unaudited)
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2011
|
|
2010
|
|
% Change at
Actual Currency
Rates
|
|
|
% Change at
Constant Currency
Rates (1)
|
|
|
Americas--
|
|
|
|
|
|
|
|
|
|
|
Specialty Injectable
Pharmaceuticals
|
$
511.3
|
|
$
483.9
|
|
5.7%
|
|
|
5.2%
|
|
|
Medication
Management
|
196.0
|
|
206.5
|
|
(5.1)%
|
|
|
(6.0)%
|
|
|
Other Pharma
|
101.6
|
|
125.4
|
|
(19.0)%
|
|
|
(19.1)%
|
|
|
Total Americas
|
808.9
|
|
815.8
|
|
(0.8)%
|
|
|
(1.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe, Middle East &
Africa--
|
|
|
|
|
|
|
|
|
|
|
Specialty Injectable
Pharmaceuticals
|
68.5
|
|
69.9
|
|
(2.0)%
|
|
|
(2.6)%
|
|
|
Medication
Management
|
33.8
|
|
34.0
|
|
(0.6)%
|
|
|
-%
|
|
|
Other Pharma
|
17.7
|
|
18.6
|
|
(4.8)%
|
|
|
(5.9)%
|
|
|
Total Europe, Middle East &
Africa
|
120.0
|
|
122.5
|
|
(2.0)%
|
|
|
(2.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific--
|
|
|
|
|
|
|
|
|
|
|
Specialty Injectable
Pharmaceuticals
|
58.8
|
|
57.6
|
|
2.1%
|
|
|
(5.6)%
|
|
|
Medication
Management
|
10.4
|
|
9.6
|
|
8.3%
|
|
|
(1.0)%
|
|
|
Other Pharma
|
4.2
|
|
2.1
|
|
100.0%
|
|
|
76.2%
|
|
|
Total Asia Pacific
|
73.4
|
|
69.3
|
|
5.9%
|
|
|
(2.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
1,002.3
|
|
$
1,007.6
|
|
(0.5)%
|
|
|
(1.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global--
|
|
|
|
|
|
|
|
|
|
|
Specialty Injectable
Pharmaceuticals
|
$
638.6
|
|
$
611.4
|
|
4.4%
|
|
|
3.3%
|
|
|
Medication
Management
|
240.2
|
|
250.1
|
|
(4.0)%
|
|
|
(5.0)%
|
|
|
Other Pharma
|
123.5
|
|
146.1
|
|
(15.5)%
|
|
|
(16.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
$
1,002.3
|
|
$
1,007.6
|
|
(0.5)%
|
|
|
(1.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
SOURCE Hospira, Inc.