DOW JONES NEWSWIRES

AmerisourceBergen Co.'s (ABC) fiscal first-quarter net income was nearly flat amid the loss of direct-to-warehouse business that began during the summer.

Investors have been wary of drug wholesalers, who face relatively low growth and profits and other pressures. In addition, the health-care industry is starting to show signs that it is getting hurt by the recession, as hospitals and consumers rein in spending.

For the quarter ended Dec. 31, the pharmaceutical services company recorded net income of $111.1 million, or 72 cents a share, up from $109.8 million, or 66 cents a share, a year ago.

Revenue remained flat at $17.3 billion.

Analysts polled by Thomson Reuters were looking for earnings of 69 cents on revenue of $17.21 billion.

Gross margin edged up to 2.83% from 2.80%.

AmerisourceBergen again affirmed its forecast for fiscal-year earnings of $3.08 to $3.25 a share on revenue growth of 1% to 3%.

Moody's Investors Services noted last month AmerisourceBergen and other drug wholesalers were heading into their year-end inventory-building season with less cash and tougher credit markets than in prior years.

But Chief Executive R. David Yost said last month that over the long term, the drug wholesale industry should keep growing as the population ages. As such, he said the company's liquidity is "very, very strong."

AmerisourceBergen shares closed Wednesday at $37.34. There was no premarket trading.

-By Katherine Wegert, Dow Jones Newswires; 201-938-5400; katherine.wegert@dowjones.com

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