LAKE FOREST, Ill., Feb. 17 /PRNewswire-FirstCall/ -- Hospira, Inc. , a leading global specialty pharmaceutical and medication delivery company, today reported results for the fourth quarter and full year ended Dec. 31, 2008. For the fourth quarter of 2008, net sales were $914 million, and adjusted* diluted earnings per share were $0.78. For the full year of 2008, net sales were $3.6 billion, and adjusted* diluted earnings per share were $2.53. (Adjusted* measures exclude certain specified items as described later in this press release and the attached schedules.)
“Hospira delivered another positive year of performance in 2008, generating solid revenue and strong profit growth, further advancing key areas of our business and successfully completing the integration of the Mayne Pharma acquisition,” said Christopher B. Begley, chairman and chief executive officer. “Looking forward, as a diversified healthcare company primarily serving the acute-care market, Hospira is well positioned in 2009. Hospira’s underlying businesses remain solid, and we expect another year of growth guided by our focus on execution and operational optimization.”
Fourth-Quarter 2008 Results
The following table highlights selected financial results for the fourth quarter of 2008 compared to the same period in 2007:
Results under U.S. Generally Accepted Accounting Principles (GAAP) include items as detailed in the schedules attached to this press release.
Net sales decreased 3.4 percent to $914 million in the fourth quarter of 2008, compared to $946 million in the fourth quarter of 2007. The decline was primarily driven by three factors: unfavorable foreign currency translation; unusually high U.S. wholesaler purchasing patterns for Specialty Injectable Pharmaceuticals in the fourth quarter of 2007; and decreased demand in Other Pharma from some contract manufacturing customers.
Medication Management Systems (MMS) reported solid sales growth based on continued demand for its newest general infusion system, Symbiq(R).
Adjusted* operating income increased 22.5 percent to $188 million in the fourth quarter of 2008, compared to $154 million in the fourth quarter of 2007. Contributing to the increase was favorable volume/mix, improved manufacturing efficiency and the impact of Selling, General & Administrative (SG&A) cost-containment measures.
Full-Year 2008 Results
The following table highlights selected financial results for the full year 2008 compared to the same period in 2007:
Net sales increased 5.6 percent to $3.6 billion for the year ended Dec. 31, 2008, compared to $3.4 billion for the prior year. The increase was primarily a result of the impact of new group purchasing organization (GPO) awards; strong demand for the company’s MMS product lines; and favorable foreign currency translation.
Adjusted* operating income increased 11.6 percent to $647 million for the full year of 2008, compared to $580 million for the full year of 2007. The increase is primarily a result of favorable volume/mix, improved manufacturing efficiencies and the impact of foreign exchange.
Cash Flow
Cash flow from operations for the full-year 2008 was $584 million, an increase compared to the $551 million generated in 2007.
Capital expenditures were $164 million for the full year, compared to $211 million in 2007. The decline is partly due to lower spending in 2008 than in 2007 related to the company’s facilities optimization initiatives, as well as to capital-spending controls the company effected in the second half of 2008.
2009 Projections
Hospira expects net sales growth for full-year 2009 to be approximately 4 to 6 percent on a constant-currency basis. Including the impact of foreign exchange, the company expects net sales to be relatively flat. Adjusted* diluted earnings per share for 2009 are expected to be in the range of $2.62 to $2.72.
The reconciliation between the projected 2009 adjusted* diluted earnings per share and GAAP diluted earnings per share follows:
The company projects 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.
“Our 2009 guidance aligns with our core strategies to improve margins and cash flow and invest for growth,” said Begley. “We have a robust global generic drug pipeline and attractive growth opportunities in generic injectables. With our expanded GPO contracts, we expect to attract additional customers to our broad portfolio of products. We also expect continued momentum with MMS as we advance our technologically enhanced offerings. Through our streamlined, focused management and optimization initiatives, we are well positioned to advance our growth opportunities and drive sustainable long-term growth.”
*Use of Non-GAAP 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. For more information regarding these non-GAAP financial measures, please see Hospira’s Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this press release.
Webcast
Hospira will hold a conference call for investors and media at 8 a.m. Central time on Tuesday, Feb. 17, 2009. A live webcast of the conference call will be available at 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 www.hospira.com.
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 and uncertainties 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 Forms 10-Q, filed with the Securities and Exchange Commission, which is incorporated by reference. Hospira undertakes no obligation to release publicly any revisions to forward-looking statements as the result of subsequent events or developments.
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/
