McKesson Reports Q3 Results
Third-quarter revenues reach $28.2 billion.
- By Joseph Duffy
- Feb 03, 2011
McKesson Corporation, a pharmaceutical distribution and technology solutions company, reported that revenues for the third quarter (ended December 31, 2010) were $28.2 billion.
"McKesson continued to demonstrate solid execution in the third quarter," said John H. Hammergren, chairman and chief executive officer. "I am extremely pleased with all that we have accomplished during the first nine months of our fiscal year, including continued strong performance in Distribution Solutions, significant share repurchases, and the acquisition of US Oncology."
On December 30, 2010, McKesson completed the acquisition of US Oncology, an oncology services company. As of December 31, 2010, the balance sheet of US Oncology is included in McKesson's balance sheet.
McKesson’s business falls into two primary categories: Distribution Solutions and Technology Solutions.
Distribution Solutions gross profit was $1,082 million compared to $1,104 million in the third quarter a year ago. Gross profit margin in the third quarter was lower compared to the third quarter a year ago, primarily due to the prior year’s impact of the H1N1 flu virus. Gross profit margin continues to benefit from higher-margin products and services, including sales of OneStop Generics, which increased 29% in the third quarter. Technology Solutions revenues were up 2% for the quarter and its third-quarter operating profit was $106 million, up 31% from $81 million a year ago.
Other third-quarter highlights included:
• Third-quarter earnings per diluted share of 60 cents, which included a pre-tax
AWP litigation charge of $189 million, or 52 cents per diluted share.
• Excluding the AWP litigation charge, third-quarter earnings per diluted share from continuing operations of $1.12.
• Third-quarter results included transaction expenses of approximately 10 cents per diluted share related to the acquisition of US Oncology.
• Fiscal 2011 Outlook: Earnings per diluted share from continuing operations of $4.82 to $5.02, excluding adjustments to litigation reserves and approximately 15 cents of estimated full-year transaction expenses related to the acquisition of US Oncology.
For more information, visit www.mckesson.com.
Joseph Duffy is a freelance writer and marketing consultant, and a regular contributor to HME Business and Respiratory & Sleep Management. He can be reached via e-mail at firstname.lastname@example.org or email@example.com.