-- Affirms 2009 sales projections; increases 2009 adjusted*
earnings guidance -- LAKE FOREST, Ill., July 29
/PRNewswire-FirstCall/ -- Hospira, Inc. (NYSE: HSP), a leading
global specialty pharmaceutical and medication delivery company,
today reported results for the second quarter ended June 30, 2009.
Net sales for the quarter were $957 million, and adjusted* diluted
earnings per share were $0.73. (Adjusted* measures exclude certain
specified items as described later in this press release and the
attached schedules.) "Hospira delivered a very good second quarter,
marked by strong sales and earnings, and significant progress
toward our Project Fuel initiatives," said Christopher B. Begley,
chairman and chief executive officer. "Based on our results for the
first half of the year and our expectations for the remainder of
2009, we have increased our full-year adjusted earnings guidance.
We remain committed to improving shareholder value through
sustainable top- and bottom-line growth." Second-Quarter 2009
Results The following table highlights selected financial results
for the second quarter of 2009 compared to the same period in 2008:
In $ millions, GAAP Adjusted* except per Three Months Ended Three
Months Ended share amounts June 30, June 30, ---------------- %
---------------- % 2009 2008 Change 2009 2008 Change ------ ------
------ ------ ------ ------ Net Sales $956.9 $901.6 6.1% n/a n/a
n/a Gross Profit (Net Sales less Cost of Products Sold) $346.2
$335.2 3.3% $365.8 $357.1 2.4% Income from Operations $91.1 $117.7
(22.6%) $176.7 $152.2 16.1% Diluted EPS $0.16 $0.43 (62.8%) $0.73
$0.57 28.1% Statistics (as a % of Net Sales)
------------------------------- Gross Profit (Net Sales less Cost
of Products Sold) 36.2% 37.2% 38.2% 39.6% Income from Operations
9.5% 13.1% 18.5% 16.9% Results under U.S. Generally Accepted
Accounting Principles (GAAP) include items detailed in the
schedules attached to this press release, including impairment and
other asset charges of $0.33 to second-quarter 2009 GAAP diluted
earnings per share related to the company's Project Fuel
initiatives. Net sales increased 6.1 percent to $957 million in the
second quarter of 2009, compared to $902 million in the second
quarter of 2008. Driving the growth were the results for Specialty
Injectable Pharmaceuticals (SIP) and Other Pharma. SIP results
benefited in part from a favorable comparison to the second quarter
of 2008, which was impacted by lower-than-average wholesaler buying
patterns. Partially offsetting the favorable SIP and Other Pharma
results was a decline in Medication Management Systems (MMS), due
to a difficult comparison to the second quarter of 2008, in which
MMS generated record quarterly results. Adjusted* income from
operations increased 16.1 percent to $177 million in the second
quarter of 2009, compared to $152 million in the second quarter of
2008. Driving the majority of the increase were higher sales
volumes; improvements in selling, general and administrative
(SG&A) expenses as a result of Project Fuel initiatives; and
lower research and development (R&D) spending related to the
timing of expenditures. Partially offsetting these factors was the
impact of foreign exchange. Cash Flow Cash flow from operations for
the first six months of 2009 was $236 million, compared to the $183
million generated for the same period in 2008. Capital expenditures
decreased to $78 million for the first six months of 2009, compared
to $87 million for the same period in 2008, due to the continued
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 4 to 6 percent on a constant-currency basis.
Including the impact of foreign exchange, the company expects net
sales to be flat to slightly up. The company now expects full-year
2009 adjusted* diluted earnings per share to range between $2.70
and $2.75 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* $2.70 -
$2.75 ------------- Estimated charges related to Project Fuel
initiatives (mid-point range of an estimated $0.38 to $0.42 per
diluted share in 2009 for non-impairment charges, plus incurred
second-quarter impairment and other asset charges of $0.33 per
diluted share) ($0.73) Estimated charges related to planned
facilities optimization initiatives (mid-point of an estimated
range of $0.10 to $0.12 per diluted share for 2009) ($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) Benefit from the settlement of a U.S.
income tax audit $0.57 ------------- Diluted earnings per share --
GAAP $2.10 - $2.15 ============= The company continues to project
that cash flow from operations in 2009 will be in the $565 million
to $615 million range. Depreciation and amortization is expected to
be between $210 million and $220 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 Wednesday,
July 29, 2009. A live webcast of the conference call will be
available on Hospira's Web site at http://www.hospirainvestor.com/.
Listeners should log on approximately 10 minutes in advance to
ensure proper computer 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
http://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. Media Financial Community Stacey Eisen
Karen King (224)212-2276 (224)212-2711 Media Tareta Adams
(224)212-2535 Hospira, Inc. Condensed Consolidated Statements of
Income (Unaudited) (dollars and shares in millions, except for per
share amounts) Three Months Ended June 30, -------------- % 2009
2008 Change ------ ------ ------ Net sales $956.9 $901.6 6.1 %
------ ------ Cost of products sold 610.7 566.4 7.8 % Restructuring
and impairment 55.9 6.3 787.3 % Research and development 52.9 58.0
(8.8)% Acquired in-process research and development - 0.5 (100.0)%
Selling, general and administrative 146.3 152.7 (4.2)% ------
------ Total operating expenses 865.8 783.9 10.4 % ------ ------
Income From Operations 91.1 117.7 (22.6)% Interest expense 28.2
28.2 - % Other expense (income), net 14.5 - nm ------ ------ Income
Before Income Taxes 48.4 89.5 (45.9)% Income tax expense (benefit)
22.9 20.4 12.3 % ------ ------ Net Income $25.5 $69.1 (63.1)%
====== ====== Earnings Per Common Share: Basic $0.16 $0.43 (62.8)%
====== ====== Diluted $0.16 $0.43 (62.8)% ====== ====== Weighted
Average Common Shares Outstanding: Basic 160.5 159.1 0.9 % ======
====== Diluted 162.4 161.5 0.6 % ====== ====== Adjusted Gross
Profit (1)(2) $365.8 $357.1 2.4 % Adjusted Income From Operations
(1) $176.7 $152.2 16.1 % Adjusted Net Income (1) $118.2 $92.4 27.9
% Adjusted Diluted Earnings Per Share (1) $0.73 $0.57 28.1 %
Statistics (as a % of net sales, except for income tax rate): GAAP
Adjusted (1) Three Months Ended Three Months Ended June 30, June
30, ------------------ ------------------ 2009 2008 2009 2008
-------- -------- -------- -------- Gross Profit (2) 36.2 % 37.2 %
38.2 % 39.6 % Income From Operations 9.5 % 13.1 % 18.5 % 16.9 % Net
Income 2.7 % 7.7 % 12.4 % 10.2 % Income Tax Rate 47.3 % 22.8 % 21.5
% 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. Condensed Consolidated Statements of Income (Unaudited)
(dollars and shares in millions, except for per share amounts) Six
Months Ended June 30, ------------------ % 2009 2008 Change
-------- -------- ------ Net sales $1,816.6 $1,790.3 1.5 % --------
-------- Cost of products sold 1,150.8 1,138.1 1.1 % Restructuring
and impairment 65.3 9.3 602.2 % Research and development 102.9
107.9 (4.6)% Acquired in-process research and development - 0.5
(100.0)% Selling, general and administrative 291.8 305.1 (4.4)%
-------- -------- Total operating expenses 1,610.8 1,560.9 3.2 %
-------- -------- Income From Operations 205.8 229.4 (10.3)%
Interest expense 55.1 59.6 (7.6)% Other expense (income), net 14.2
(4.1) (446.3)% -------- -------- Income Before Income Taxes 136.5
173.9 (21.5)% Income tax (benefit) expense (54.5) 39.4 (238.3)%
-------- -------- Net Income $191.0 $134.5 42.0 % ======== ========
Earnings Per Common Share: Basic $1.19 $0.85 40.0 % ========
======== Diluted $1.18 $0.83 42.2 % ======== ======== Weighted
Average Common Shares Outstanding: Basic 160.0 158.9 0.7 % ========
======== Diluted 161.5 161.2 0.2 % ======== ======== Adjusted Gross
Profit (1)(2) $705.4 $694.6 1.6 % Adjusted Income From Operations
(1) $326.6 $297.4 9.8 % Adjusted Net Income (1) $215.0 $180.3 19.2
% Adjusted Diluted Earnings Per Share (1) $1.33 $1.12 18.8 %
Statistics (as a % of net sales, except for income tax rate): GAAP
Adjusted (1) Six Months Ended Six Months Ended June 30, June 30,
------------------ ------------------ 2009 2008 2009 2008 --------
-------- -------- -------- Gross Profit (2) 36.7 % 36.4 % 38.8 %
38.8 % Income From Operations 11.3 % 12.8 % 18.0 % 16.6 % Net
Income 10.5 % 7.5 % 11.8 % 10.1 % Income Tax Rate (39.9)% 22.7 %
21.5 % 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 June 30, 2009 Reconciliation of GAAP to Non-GAAP Financial
Measures:
-------------------------------------------------------------------
Income Gross From Net Diluted Profit (1) Operations Income EPS
---------- ---------- ------- ------- GAAP financial measures
$346.2 $91.1 $25.5 $0.16 Specified items: Project Fuel charges (A)
4.8 67.6 64.0 0.40 Facilities Optimization charges (B) 0.4 3.6 2.4
0.01 Amortization of Mayne Pharma intangible assets (C) 14.4 14.4
9.7 0.06 Impairment of marketable equity securities (D) - - 16.6
0.10 ---------- ---------- ------- ------- Adjusted financial
measures $365.8 $176.7 $118.2 $0.73 ========== ========== =======
======= GAAP results for the three months ended June 30, 2009
include: A -- Project Fuel charges: $4.8 million reported in Cost
of products sold, $52.7 million reported in Restructuring and
impairment, $0.9 million reported in Research and development and
$9.2 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: $0.4 million reported in Cost of
products sold and $3.2 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. Three months ended June
30, 2008 Reconciliation of GAAP to Non-GAAP Financial Measures:
-------------------------------------------------------------------
Income Gross From Net Diluted Profit (1) Operations Income EPS
---------- ---------- ------- ------- GAAP financial measures
$335.2 $117.7 $69.1 $0.43 Specified items: Facilities Optimization
charges (A) 3.4 9.9 6.2 0.04 Amortization of Mayne Pharma
intangible assets (B) 15.9 15.9 10.7 0.07 Integration-related
charges (C) 2.6 8.2 5.9 0.03 Acquired in-process research and
development - 0.5 0.5 - ---------- ---------- ------- -------
Adjusted financial measures $357.1 $152.2 $92.4 $0.57 ==========
========== ======= ======= GAAP results for the three months ended
June 30, 2008 include: A -- Facilities Optimization charges: $3.4
million reported in Cost of products sold, $6.3 million reported in
Restructuring and impairment and $0.2 million reported in Research
and development. B -- Amortization of Mayne Pharma intangible
assets is reported in Cost Of products sold. C --
Integration-related charges: $2.6 million reported in Cost of
products sold, $0.4 million reported in Research and development
and $5.2 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. Six months ended June 30, 2009
Reconciliation of GAAP to Non-GAAP Financial Measures:
-----------------------------------------------------------------
Income Gross From Net Diluted Profit (1) Operations Income EPS
---------- ---------- ------- ------- GAAP financial measures
$665.8 $205.8 $191.0 $1.18 Specified items: Project Fuel charges
(A) 4.8 78.1 70.5 0.44 Facilities Optimization charges (B) 7.4 15.3
10.1 0.06 Amortization of Mayne Pharma intangible assets (C) 27.4
27.4 18.7 0.12 Impairment of marketable equity securities (D) - -
16.6 0.10 Resolution of IRS tax audit benefit (E) - - (91.9) (0.57)
---------- ---------- ------- ------- Adjusted financial measures
$705.4 $326.6 $215.0 $1.33 ========== ========== ======= =======
GAAP results for the six months ended June 30, 2009 include: A --
Project Fuel charges: $4.8 million reported in Cost of products
sold, $57.4 million reported in Restructuring and impairment, $1.3
million reported in Research and development and $14.6 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: $7.4 million reported in Cost of
products sold and $7.9 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 U.S. tax return audits. Six
months ended June 30, 2008 Reconciliation of GAAP to Non-GAAP
Financial Measures:
-----------------------------------------------------------------
Income Gross From Net Diluted Profit (1) Operations Income EPS
---------- ---------- ------- ------- GAAP financial measures
$652.2 $229.4 $134.5 $0.83 Specified items: Facilities Optimization
charges (A) 7.8 17.7 10.9 0.07 Amortization of Mayne Pharma
intangible assets (B) 31.6 31.6 21.3 0.14 Integration-related
charges (C) 3.0 18.2 13.1 0.08 Acquired in-process research and
development - 0.5 0.5 - ---------- ---------- ------- -------
Adjusted financial measures $694.6 $297.4 $180.3 $1.12 ==========
========== ======= ======= GAAP results for the six months ended
June 30, 2008 include: A -- Facilities Optimization charges: $7.8
million reported in Cost of products sold, $9.3 million reported in
Restructuring and impairments and $0.6 million reported in Research
and development. B -- Amortization of Mayne Pharma intangible
assets is reported in Cost of products sold. C --
Integration-related charges: $3.0 million reported in Cost of
products sold, $0.8 million reported in Research and development
and $14.4 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. Condensed Consolidated
Balance Sheets (Unaudited) (dollars in millions) June 30, December
31, Assets 2009 2008 -------- -------- Current Assets: Cash and
cash equivalents $608.5 $483.8 Trade receivables, less allowances
of $7.7 in 2009 and $6.7 in 2008 594.4 583.4 Inventories 864.7
830.5 Deferred income taxes 191.7 172.2 Prepaid expenses and other
current assets 48.5 35.7 Other receivables 50.5 43.7 --------
-------- Total Current Assets 2,358.3 2,149.3 -------- --------
Property and equipment, net 1,183.2 1,192.1 Intangible assets, net
399.7 404.4 Goodwill 1,189.5 1,167.4 Deferred income taxes 62.1
70.1 Investments 41.3 37.6 Other assets 54.8 53.2 -------- --------
Total Assets $5,288.9 $5,074.1 ======== ======== Liabilities and
Shareholders' Equity Current Liabilities: Short-term borrowings
$402.0 $338.3 Trade accounts payable 200.4 231.5 Salaries, wages
and commissions 121.2 144.7 Deferred income taxes - 1.5 Other
accrued liabilities 340.7 331.5 -------- -------- Total Current
Liabilities 1,064.3 1,047.5 -------- -------- Long-term debt
1,705.8 1,834.0 Deferred income taxes 29.9 25.2 Post-retirement
obligations 200.3 195.5 Other long-term liabilities 94.3 195.5
Commitments and Contingencies -------- -------- Total Shareholders'
Equity 2,194.3 1,776.4 -------- -------- Total Liabilities and
Shareholders' Equity $5,288.9 $5,074.1 ======== ======== Hospira,
Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)
(dollars in millions) Six Months Ended June 30, ----------------
2009 2008 ------ ------ Cash Flow From Operating Activities: Net
income $191.0 $134.5 Adjustments to reconcile net income to net
cash from operating activities- Depreciation 83.2 93.9 Amortization
of intangible assets 30.7 34.4 Impairment and other asset charges
69.7 - Write-off of acquired in-process research and development -
0.5 Stock-based compensation expense 22.7 24.5 Deferred income tax
and other tax adjustments (98.3) (4.6) Net gains on sales of assets
- (0.5) Changes in assets and liabilities- Trade receivables (2.8)
(44.5) Inventories (6.3) (51.2) Prepaid expenses and other assets
(11.4) 13.5 Trade accounts payable (32.8) 9.8 Other liabilities
(18.2) (41.5) Other, net 8.5 13.8 ------ ------ Net Cash Provided
by Operating Activities 236.0 182.6 ------ ------ Cash Flow From
Investing Activities: Capital expenditures (including instruments
placed with or leased to customers) (77.8) (86.7) Acquisition, net
of cash acquired, and payments for contingent consideration (14.2)
(20.4) Purchases of intangibles and other investments (3.2) (42.3)
Purchases of marketable equity securities - (24.5) Proceeds from
sale of facilities - 0.8 ------ ------ Net Cash Used in Investing
Activities (95.2) (173.1) ------ ------ Cash Flow From Financing
Activities: Issuance of long-term debt, net of fees paid 246.7 -
Repayment of long-term debt (306.1) (85.1) Other borrowings, net
0.7 7.0 Excess tax benefit from stock-based compensation
arrangements 0.2 1.0 Proceeds from stock options exercised 35.4
22.5 ------ ------ Net Cash Used in Financing Activities (23.1)
(54.6) ------ ------ Effect of exchange rate changes on cash and
cash equivalents 7.0 5.4 ------ ------ Net change in cash and cash
equivalents 124.7 (39.7) Cash and cash equivalents at beginning of
period 483.8 241.1 ------ ------ Cash and cash equivalents at end
of period $608.5 $201.4 ====== ====== Supplemental Cash Flow
Information: Cash paid during the period- Interest $54.8 $62.4
Income taxes, net of refunds $18.7 $27.7 Hospira, Inc. Net Sales by
Product Line (Unaudited) (dollars in millions) Three Months Ended
June 30, ------------------------------------ % Change % Change at
Actual at Constant 2009 2008 Rates Rates (1) ------ ------ -----
--------- Americas-- Pharmaceuticals Specialty Injectables $368.5
$299.9 22.9 % 24.6 % Other Pharma 139.4 122.7 13.6 % 15.8 % ------
------ 507.9 422.6 20.2 % 22.0 % Devices Medication Management
Systems 152.2 161.7 (5.9)% (3.7)% Other Devices 91.6 92.9 (1.4)%
0.5 % ------ ------ 243.8 254.6 (4.2)% (2.1)% Total Americas 751.7
677.2 11.0 % 12.9 % Europe, Middle East & Africa--
Pharmaceuticals Specialty Injectables 68.1 78.4 (13.1)% 2.3 % Other
Pharma 35.4 42.4 (16.5)% (2.0)% ------ ------ 103.5 120.8 (14.3)%
0.8 % Devices Medication Management Systems 17.5 19.3 (9.3)% 4.6 %
Other Devices 17.4 16.5 5.5 % 22.1 % ------ ------ 34.9 35.8 (2.5)%
12.7 % Total Europe, Middle East & Africa 138.4 156.6 (11.6)%
3.5 % Asia Pacific-- Pharmaceuticals Specialty Injectables 53.0
52.4 1.1 % 18.4 % Other Pharma 2.7 3.5 (22.9)% (2.6)% ------ ------
55.7 55.9 (0.4)% 17.1 % Devices Medication Management Systems 4.9
5.0 (2.0)% 11.0 % Other Devices 6.2 6.9 (10.1)% (2.3)% ------
------ 11.1 11.9 (6.7)% 3.3 % Total Asia Pacific 66.8 67.8 (1.5)%
14.6 % ------ ------ Net Sales $956.9 $901.6 6.1 % 11.4 % ======
====== Global-- Pharmaceuticals Specialty Injectables $489.6 $430.7
13.7 % 19.8 % Other Pharma 177.5 168.6 5.3 % 10.9 % ------ ------
667.1 599.3 11.3 % 17.3 % Devices Medication Management Systems
174.6 186.0 (6.1)% (2.4)% Other Devices 115.2 116.3 (0.9)% 3.4 %
------ ------ 289.8 302.3 (4.1)% (0.1)% ------ ------ Net Sales
$956.9 $901.6 6.1 % 11.4 % ====== ====== Six Months Ended June 30,
-------------------------------------- % Change % Change at Actual
at Constant 2009 2008 Rates Rates (1) -------- -------- -----
--------- Americas-- Pharmaceuticals Specialty Injectables $701.6
$640.6 9.5 % 11.2 % Other Pharma 277.2 244.6 13.3 % 15.7 % --------
-------- 978.8 885.2 10.6 % 12.5 % Devices Medication Management
Systems 273.6 279.8 (2.2)% 0.4 % Other Devices 184.0 186.4 (1.3)%
0.8 % -------- -------- 457.6 466.2 (1.8)% 0.6 % Total Americas
1,436.4 1,351.4 6.3 % 8.4 % Europe, Middle East & Africa--
Pharmaceuticals Specialty Injectables 125.7 156.7 (19.8)% (5.0)%
Other Pharma 63.1 79.0 (20.1)% (5.0)% -------- -------- 188.8 235.7
(19.9)% (5.0)% Devices Medication Management Systems 36.6 39.7
(7.8)% 6.9 % Other Devices 34.2 34.0 0.6 % 16.8 % -------- --------
70.8 73.7 (3.9)% 11.5 % Total Europe, Middle East & Africa
259.6 309.4 (16.1)% (1.1)% Asia Pacific-- Pharmaceuticals Specialty
Injectables 92.0 98.0 (6.1)% 13.4 % Other Pharma 6.3 7.6 (17.1)%
8.3 % -------- -------- 98.3 105.6 (6.9)% 13.1 % Devices Medication
Management Systems 9.6 10.7 (10.3)% 3.0 % Other Devices 12.7 13.2
(3.8)% 5.3 % -------- -------- 22.3 23.9 (6.7)% 4.3 % Total Asia
Pacific 120.6 129.5 (6.9)% 11.4 % -------- -------- Net Sales
$1,816.6 $1,790.3 1.5 % 7.0 % ======== ======== Global--
Pharmaceuticals Specialty Injectables $919.3 $895.3 2.7 % 8.7 %
Other Pharma 346.6 331.2 4.6 % 10.6 % -------- -------- 1,265.9
1,226.5 3.2 % 9.2 % Devices Medication Management Systems 319.8
330.2 (3.1)% 1.3 % Other Devices 230.9 233.6 (1.2)% 3.3 % --------
-------- 550.7 563.8 (2.3)% 2.2 % -------- -------- Net Sales
$1,816.6 $1,790.3 1.5 % 7.0 % ======== ======== (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 June 30,
-------------------------------------------------------- Net Sales
Income from Operations -------------- % ----------------- % 2009
2008 Change 2009 2008 Change ------ ------ ------ ------ ------
------ Americas $751.7 $677.2 11.0 % $123.2 A $138.6 A (11.1)%
Europe, Middle East & Africa 138.4 156.6 (11.6)% 1.2 B 1.8 B
(33.3)% Asia Pacific 66.8 67.8 (1.5)% (2.8) C 5.1 C (154.9)% ------
------ ------ ------ Total reportable segments $956.9 $901.6 6.1 %
121.6 145.5 (16.4)% ====== ====== Corporate functions (20.9) D
(17.7) D 18.1 % Stock-based compensation (9.6) (10.1) (5.0)% ------
------ Income from operations 91.1 117.7 (22.6)% Interest expense
and other expense (income), net (42.7) E (28.2) E 51.4 % ------
------ Income before income taxes $48.4 $89.5 (45.9)% ====== ======
Included in the reported Income before income taxes above, are the
following charges: A -- Americas Project Fuel $52.2 $ - Facilities
Optimization 3.6 9.9 Amortization of Mayne Pharma intangible assets
4.8 5.0 Integration-related - 0.9 Acquired in-process research and
development - 0.5 ------ ------ Total Americas 60.6 16.3 B --
Europe, Middle East & Africa Project Fuel 3.1 - Amortization of
Mayne Pharma intangible assets 5.6 6.1 Integration-related - 4.0
------ ------ Total Europe, Middle East & Africa 8.7 10.1 C --
Asia Pacific Project Fuel 8.2 - Amortization of Mayne Pharma
intangible assets 4.0 4.8 Integration-related - 2.2 ------ ------
Total Asia Pacific 12.2 7.0 D -- Corporate functions Project Fuel
4.1 - Integration-related - 1.1 ------ ------ Total Corporate
functions 4.1 1.1 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 $102.2 $34.5 ====== ====== Hospira, Inc.
Segment Information (Unaudited) (dollars in millions) Six Months
Ended June 30,
---------------------------------------------------------- Net
Sales Income from Operations ---------------- % ----------------- %
2009 2008 Change 2009 2008 Change -------- -------- ------ ------
------ ------ Americas $1,436.4 $1,351.4 6.3 % $258.2 A $274.9 A
(6.1)% Europe, Middle East & Africa 259.6 309.4 (16.1)% 11.3 B
6.3 B 79.4 % Asia Pacific 120.6 129.5 (6.9)% 0.4 C 7.2 C (94.4)%
-------- -------- ------ ------ Total reportable segments $1,816.6
$1,790.3 1.5 % 269.9 288.4 (6.4)% ======== ======== Corporate
functions (41.4) D (34.5) D 20.0 % Stock-based compensation (22.7)
(24.5) (7.3)% ------ ------ Income from operations 205.8 229.4
(10.3)% Interest expense and other expense (income), net (69.3) E
(55.5) E 24.9 % ------ ------ Income before income taxes $136.5
$173.9 (21.5)% ====== ====== Included in the reported Income before
income taxes above, are the following charges: A -- Americas
Project Fuel $59.8 $ - Facilities Optimization 15.3 17.7
Amortization of Mayne Pharma intangible assets 9.3 10.2
Integration-related - 1.3 Acquired in-process research and
development - 0.5 ------ ------ Total Americas 84.4 29.7 B --
Europe, Middle East & Africa Project Fuel 3.3 - Amortization of
Mayne Pharma intangible assets 10.6 11.9 Integration-related - 9.4
------ ------ Total Europe, Middle East & Africa 13.9 21.3 C --
Asia Pacific Project Fuel 8.7 - Amortization of Mayne Pharma
intangible assets 7.5 9.5 Integration-related - 3.8 ------ ------
Total Asia Pacific 16.2 13.3 D -- Corporate functions Project Fuel
6.3 - Integration-related - 3.7 ------ ------ Total Corporate
functions 6.3 3.7 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 $137.4 $68.0 ====== ======
http://www.newscom.com/cgi-bin/prnh/20040503/HSPLOGO
http://photoarchive.ap.org/ DATASOURCE: Hospira, Inc. CONTACT:
Media, Stacey Eisen, +1-224-212-2276, or Tareta Adams,
+1-224-212-2535, or Financial Community, Karen King,
+1-224-212-2711, all of Hospira, Inc. Web Site:
http://www.hospira.com/
Copyright