Financial Report: Hospira 4Q

Hospira

4Q Revenues: $913.7 million (-3%)

4Q Earnings: $155.7 million (+37%)

FY Revenues: $3.6 billion (+6%)

FY Earnings: $517.8 million (+71%)

Comments: In the Americas Pharmaceutical Specialty Injectables sales were $347.2 million in the quarter (-1%) and $1.3 billion for the year (+7%). Other Pharma revenue was $147.6 million in the quarter (-5%) and $522 million for the year (-5%). Devices Medication Management Systems revenue was $140.6 million (+9%) and $558.9 million for the year (+12%). Revenue decline in the quarter was driven by unfavorable foreign currency translation, high U.S. wholesaler purchasing patterns for Specialty Injectable Pharmaceuticals in 4Q07, and decreased demand among some contract manufacturing customers. Growth for the year was a result of the impact of new group purchasing organization (GPO) awards, and demand for the company’s MMS product lines, particularly its general infusion system, Symbiq. In the quarter, the company incurred charges of $9 million related to the closures of the Ashland, OH; Montreal, Canada; North Chicago, IL; and Morgan Hill, CA facilities; and Mayne Pharma integration and other acquisition-related charges of $2.8 million. The earnings increases are attributed to favorable volume/mix, improved manufacturing efficiency and the impact of SG&A cost-containment measures.