2nd UPDATE: Hospira Boosts 2009 Sales, EPS Guidance
17 Setembro 2009 - 12:09PM
Dow Jones News
Hospira Inc. (HSP) boosted its financial guidance for 2009 on
Thursday due to strength in its U.S. business for specialty
injectable drugs.
The company also issued growth forecasts for 2011 that call for
improved financial results behind a cost-cutting and restructuring
plan that is now underway. The forecasts lifted Hospira shares,
which recently traded up 1.8% to $42.92. Shares earlier touched
$44.72, marking the highest point in more than three years.
The Lake Forest, Ill., maker of generic drugs and medical
devices announced the fresh outlook in a filing with the U.S.
Securities and Exchange Commission, and is also discussing its
forecasts during an investor conference Thursday. The company now
sees global sales rising by 5% to 7% this year, excluding the
impact of foreign currency. The company on July 29 had reiterated
prior guidance for a 4% to 6% sales climb.
Adjusted per-share earnings, which excludes charges linked to a
big company restructuring plan, among other items, are now seen at
$2.80 to $2.85 this year. Both ends of the new forecast are up 10
cents from prior guidance, which was increased by three cents on
July 29.
Analysts surveyed by Thomson Reuters had, on average, expected
earnings for the year of $2.77 a share.
Christopher B. Begley, Hospira's chairman and chief executive,
said during the conference that the 2009 guidance was lifted due to
the company's domestic specialty injectable drug business. For the
year, Hospira now sees specialty injectable sales rising 8% to 10%,
up from the prior 4% to 6% growth forecast.
That business had a strong second quarter in part due to
wholesaler buying patterns that helped in that period and hurt a
year earlier.
Hospira also boosted the upper end of its 2009 gross margin
forecast, which is now 39.5% to 40.5%, guided to an operating
margin of 18% to 19% and boosted its forecast for 2009 cash flow
from operations to a range of $610 million to $660 million.
Looking ahead, Hospira said that for 2011, it sees annual sales
growth in the high single-digit range. It also sees adjusted
earnings-per-share growth in a low-to-mid double-digit range. The
2009 forecast equates to an 11% to 13% rise.
Hospira anticipates improving its financial performance via the
restructuring program, called "Project Fuel," which the company
announced in March. The plan includes a 10% workforce reduction and
the slimming down of Hospira's product offerings alongside the
potential sale of non-core businesses.
Begley said Thursday that the company has to date identified
about 3,700 list numbers from its product portfolio that can be
eliminated, including the recently divested critical care business.
This represents more than 50% of the company's portfolio and is a
greater reduction than the company had originally projected when it
launched the restructuring plan.
The company also said it has notified more than 50% of the
workers impacted by the plan.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com