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McKesson Releases Fiscal 2015 2nd-Quarter Results [Manufacturing Close - Up](Manufacturing Close - Up Via Acquire Media NewsEdge) McKesson Corp. reported that revenues for the second quarter ended September 30, were $44.8 billion, up 36 percent compared to $33 billion a year ago. On the basis of U.S. generally accepted accounting principles ("GAAP"), second-quarter earnings per diluted share from continuing operations was $2.05 compared to $1.82 a year ago. According to a release on October 28, the Company noted that second-quarter Adjusted Earnings per diluted share from continuing operations was $2.79, up 21 percent compared to $2.30 a year ago. "McKesson delivered another quarter of solid results reflecting strong execution across our business. We are very pleased with our performance for the first half of Fiscal 2015," said John H. Hammergren, chairman and chief executive officer. "We continue to expect Adjusted Earnings per diluted share from continuing operations of $10.50 to $10.90 for the fiscal year ending March 31, 2015." For the first half of the fiscal year, McKesson generated cash from operations of $165 million, and ended the quarter with cash and cash equivalents of $3.8 billion. During the first half of the fiscal year, McKesson paid $115 million in dividends, had internal capital spending of $272 million, and spent $31 million on acquisitions. Segment Results Distribution Solutions revenues were $44 billion, up 37 percent for the quarter on a reported and constant currency basis, mainly driven by the contribution from our acquisition of Celesio and market growth. North America pharmaceutical distribution and services revenues, which include results from U.S. Pharmaceutical, McKesson Canada and McKesson Specialty Health, were up 14 percent as reported and 15 percent on a constant currency basis for the quarter, reflecting continued demand for two recently launched drugs for the treatment of Hepatitis C, market growth and our mix of business. International pharmaceutical distribution and services revenues were $7.3 billion, an increase of 4 percent on the underlying results of Celesio on a constant currency basis. Medical-Surgical distribution and services revenues were up 4 percent for the quarter, driven by market growth. In the second quarter, Distribution Solutions GAAP operating profit was $793 million and GAAP operating margin was 1.80 percent. Second-quarter adjusted operating profit was $1,063 million and the adjusted operating margin was 2.42 percent. Technology Solutions revenues were $770 million, down 6 percent in the second quarter compared to the prior year, driven by anticipated revenue softness from the Horizon clinical software platform and the planned elimination of a product line, partially offset by growth in other technology businesses. GAAP operating profit was $125 million for the second quarter and GAAP operating margin was 16.23 percent. Adjusted operating profit was $139 million for the second quarter and adjusted operating margin was 18.05 percent. Fiscal Year 2015 Outlook McKesson expects Adjusted Earnings per diluted share from continuing operations between $10.50 and $10.90 for the fiscal year ending March 31, 2015, based on an updated exchange rate of $1.31 per Euro, which excludes the following GAAP items: -Amortization of acquisition-related intangible assets of $1.32 per diluted share. -Acquisition expenses and related adjustments of 57 cents per diluted share. -LIFO inventory-related charges of 97 cents to $1.07 per diluted share. McKesson Corp. is a healthcare services and information technology company. More information: http://www.mckesson.com ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |