Comments
yourfanat wrote: I am using another tool for Oracle developers - dbForge Studio for Oracle. This IDE has lots of usefull features, among them: oracle designer, code competion and formatter, query builder, debugger, profiler, erxport/import, reports and many others. The latest version supports Oracle 12C. More information here.
Cloud Expo on Google News
SYS-CON.TV

2008 West
DIAMOND SPONSOR:
Data Direct
SOA, WOA and Cloud Computing: The New Frontier for Data Services
PLATINUM SPONSORS:
Red Hat
The Opening of Virtualization
GOLD SPONSORS:
Appsense
User Environment Management – The Third Layer of the Desktop
Cordys
Cloud Computing for Business Agility
EMC
CMIS: A Multi-Vendor Proposal for a Service-Based Content Management Interoperability Standard
Freedom OSS
Practical SOA” Max Yankelevich
Intel
Architecting an Enterprise Service Router (ESR) – A Cost-Effective Way to Scale SOA Across the Enterprise
Sensedia
Return on Assests: Bringing Visibility to your SOA Strategy
Symantec
Managing Hybrid Endpoint Environments
VMWare
Game-Changing Technology for Enterprise Clouds and Applications
Click For 2008 West
Event Webcasts

2008 West
PLATINUM SPONSORS:
Appcelerator
Get ‘Rich’ Quick: Rapid Prototyping for RIA with ZERO Server Code
Keynote Systems
Designing for and Managing Performance in the New Frontier of Rich Internet Applications
GOLD SPONSORS:
ICEsoft
How Can AJAX Improve Homeland Security?
Isomorphic
Beyond Widgets: What a RIA Platform Should Offer
Oracle
REAs: Rich Enterprise Applications
Click For 2008 Event Webcasts
Hospira Reports Third-Quarter 2012 Results
-- Reaffirms sales and adjusted earnings projections for 2012 --

LAKE FOREST, Ill., Nov. 7, 2012 /PRNewswire/ -- Hospira, Inc. (NYSE: HSP), the world's leading provider of injectable drugs and infusion technologies, today reported results for the third quarter ended Sept. 30, 2012. Net sales for the quarter were $994 million, and adjusted* diluted earnings per share were $0.47. (Adjusted* measures exclude certain specified items as described later in this press release and the attached schedules.) Diluted earnings per share on a Generally Accepted Accounting Principles (GAAP) basis were $0.01.

"Results for the third quarter were in line with our expectations, and we continued to advance our overall quality improvement initiatives," said F. Michael Ball, chief executive officer. "We remain fully committed to reinforcing Hospira's foundation, and we believe we are making progress in this regard. As we head toward the end of what has been a challenging year for Hospira, I am pleased with our dedicated focus, the improvements we are making across the organization and the advancements of Hospira's growth expansion initiatives. I remain confident that our actions are positioning Hospira to be a stronger, more competitive global company, one that will serve the needs of our customers and patients, and deliver strong value to our shareholders."

Third-Quarter 2012 Results

The following table highlights selected financial results for the third quarter of 2012 compared to the same period in 2011:


In $ millions,

except per share

amounts

GAAP

Three Months Ended

September 30,


Adjusted*

Three Months Ended

September 30,



2012

2011

%

Change

2012

2011

%

Change

Net Sales

$994.0

$976.7

1.8%

n/a

n/a

n/a

Gross Profit (Net Sales less

Cost of Products Sold)

$214.3

$303.9

(29.5)%

$334.0

$361.3

(7.6)%

(Loss) Income from

Operations

$(16.5)

$(85.2)

80.6%

$112.6

$142.4

(20.9)%

Diluted Earnings (Loss) per

Share

$0.01

$(0.54)

101.9%

$0.47

$0.66

(28.8)%

Statistics (as a % of Net Sales)

Gross Profit (Net Sales less

Cost of Products Sold)

21.6%

31.1%


33.6%

37.0%


(Loss) Income from

Operations

(1.7)%

(8.7)%


11.3%

14.6%





Results under U.S. GAAP include items as detailed in the schedules attached to this press release.

Net sales for the quarter were $994 million, an increase of 1.8 percent compared to $977 million in the third quarter of 2011. On a constant-currency basis, third-quarter 2012 net sales increased 3.9 percent compared to the third quarter of 2011. Strong U.S. sales of several Specialty Injectable Pharmaceutical (SIP) products, including Precedex™ and the oncolytic oxaliplatin, which was relaunched during the quarter, as well as higher volumes for certain SIP products in the company's Europe, Middle East and Africa (EMEA) region, contributed to the positive performance in the quarter. The strong SIP performance more than offset the impact to supply in 2012 of the company's quality-improvement and remediation initiatives.

Adjusted* income from operations for the third quarter of 2012 was $113 million compared to $142 million in the third quarter of 2011. The majority of the decline reflects the impact of costs associated with higher year-over-year manufacturing expense. On a GAAP basis, the loss from operations for the third quarter of 2012 was $17 million compared to a loss from operations of $85 million in the third quarter of 2011. On a GAAP basis, in addition to the higher year-over-year manufacturing expense, the third quarter of 2012, and to a lesser extent, the third quarter of 2011, included charges associated with certain quality- and product-related matters. The third quarter of 2011 also included the impact of a goodwill impairment charge.

The effective tax rate on an adjusted basis* in the quarter was 19.0 percent compared to 16.9 percent in the third-quarter 2011. The increase is due to the impact in 2011 of a reduction in the full-year annual effective tax rate, reflected in the third quarter of 2011. The third quarter 2012 effective tax rate on a GAAP basis was a benefit of 85.9 percent compared to a benefit of 8.1 percent in the third quarter of 2011. The third-quarter 2012 GAAP tax benefit, and to a lesser extent the third-quarter 2011 tax benefit, resulted from higher quality- and product-related charges in higher-tax rate jurisdictions.

Cash Flow

Cash flow from operations for the first nine months of 2012 was $404 million, compared to the $277 million in the same period of 2011. The increase primarily reflects lower working capital investments and lower income tax and interest payments in 2012 compared to 2011.

Capital expenditures were $202 million for the first nine months of 2012, compared to $211 million for the first nine months of 2011.  

2012 Projections

Hospira continues to project 2012 net sales to range between negative 1 to positive 2 percent on a constant-currency basis, with foreign exchange expected to detract from results by a negative 1 to negative 2 percent.

The company continues to believe that full-year 2012 adjusted* diluted earnings per share will be approximately $2.00.

The reconciliation between the projected 2012 adjusted* diluted earnings per share and GAAP diluted earnings per share follows:

Projected diluted earnings per share -- adjusted*

$2.00



Estimated amortization of intangible assets

related to certain acquisitions (mid-point of an

estimated range of $0.30 to $0.32 per diluted share)

$(0.31)



Estimated charges for certain quality and

product-related matters (mid-point of an

estimated range of $0.78 to $0.88 per diluted share)

                                                                               $(0.83)



Estimated charges related to capacity expansion

(mid-point of an estimated range of $0.07 to $0.09

per diluted share)

$(0.08)



Estimated charges related to facilities optimization

(mid-point of an estimated range of $0.08 to $0.10

per diluted share)

$(0.09)



Estimated charges for other restructuring

$(0.07)



Charges related to impairment of certain assets

$(0.09)



Projected diluted earnings per share -- GAAP

$0.53



The adjusting items are shown net of tax in aggregate of $131 million, which is calculated for the specified adjustments stated above, based on the statutory tax rates in the various tax jurisdictions in which the items are expected to occur.

The company is narrowing the projected range for cash flow from operations in 2012 to between $475 million and $500 million. The company continues to project that depreciation and amortization will range between $240 million and $260 million. Capital expenditures are now projected to range between $325 million and $350 million.

*Use of Non-GAAP Financial Measures

Adjusted 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 furnished to the Securities and Exchange Commission on the date of this press release.

Webcast / Complementary Material

Hospira will hold a conference call for investors and media at 8 a.m. Central time on Wednesday, Nov. 7, 2012. A live webcast of the conference call will be available on Hospira's website at www.hospirainvestor.com. Listeners should log on approximately 10 minutes in advance to ensure proper setup for receiving the webcast. In addition, complementary information will be available on the presentations page of the Investor Relations website at the beginning of the conference call. A replay will be available on the Hospira website for 30 days following the call.

About Hospira

Hospira, Inc. is the world's leading provider of injectable drugs and infusion technologies. Through its broad, integrated portfolio, Hospira is uniquely positioned to Advance Wellness™ by improving patient and caregiver safety while reducing healthcare costs. The company is headquartered in Lake Forest, Ill., and has approximately 15,000 employees. Learn more at www.hospira.com.

Private Securities Litigation Reform Act of 1995 --

A Caution Concerning Forward-Looking Statements



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, cash flow 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, regulatory, legal, technological, manufacturing supply, quality 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 are incorporated by reference. Hospira undertakes no obligation to release publicly any revisions to forward-looking statements as the result of subsequent events or developments.

Hospira, Inc.

Condensed Consolidated Statements of Income (Loss)

(Unaudited)

(dollars and shares in millions, except for per share amounts)



































Three Months Ended September 30,



% Change








2012



2011





Net sales





$                  994.0



$                   976.7



1.8%
















Cost of products sold




779.7



672.8



15.9%


Restructuring, impairment and (gain) on disposition of assets, net



9.4



170.2



(94.5)%


Research and development




66.2



69.3



(4.5)%


Selling, general and administrative




155.2



149.6



3.7%


   Total operating costs and expenses




1,010.5



1,061.9



(4.8)%


       Loss From Operations




(16.5)



(85.2)



80.6%
















Interest expense




21.1



23.4



(9.8)%


Other expense (income), net




2.8



(1.8)



255.6%


       Loss Before Income Taxes




(40.4)



(106.8)



62.2%
















Income tax benefit




(34.7)



(8.6)



(303.5)%


Equity income from affiliates, net




(6.9)



(9.3)



(25.8)%


       Net Income (Loss)




$                      1.2



$                   (88.9)



101.3%
















Earnings (Loss) Per Common Share:












   Basic





$                    0.01



$                   (0.54)



101.9%


   Diluted





$                    0.01



$                   (0.54)



101.9%
















Weighted Average Common Shares Outstanding:












   Basic





165.1



164.5



0.4%


   Diluted





165.9



164.5



0.9%






























Adjusted Gross Profit (1)(2)




$                  334.0



$                   361.3



(7.6)%


Adjusted Income From Operations (1)




$                  112.6



$                   142.4



(20.9)%


Adjusted Net Income (1)




$                    78.4



$                   109.7



(28.5)%


Adjusted Diluted Earnings Per Share (1)




$                    0.47



$                     0.66



(28.8)%






























Statistics (as a % of net sales, except for income tax rate):                              




























GAAP Three Months Ended September 30,



Adjusted (1) Three Months Ended September 30,





2012



2011



2012



2011


Gross Profit (2)

21.6%



31.1%



33.6%



                      37.0%


(Loss) Income From Operations

(1.7)%



(8.7)%



11.3%



14.6%


Net Income (Loss)

0.1%



(9.1)%



7.9%



11.2%


Income Tax Rate

85.9%



8.1%



19.0%



16.9%




(1)

Adjusted financial measures exclude certain specified items as described and reconciled to comparable GAAP financial measures in the Reconciliation of GAAP to Non-GAAP Financial Measures contained in this press release.

(2)

Gross profit is defined as Net sales less Cost of products sold. Adjusted gross profit excludes certain specified items, as indicated in the previous footnote.



Hospira, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

(dollars and shares in millions, except for per share amounts)



































Nine Months Ended September 30,



% Change








2012



2011





Net sales





$                  2,993.2



$                  3,043.1



(1.6)%
















Cost of products sold




2,195.4



1,926.7



13.9%


Restructuring, impairment and (gain) on disposition of assets, net



41.6



184.9



(77.5)%


Research and development




218.9



192.0



14.0%


Selling, general and administrative




509.3



470.4



8.3%


   Total operating costs and expenses




2,965.2



2,774.0



6.9%


       Income From Operations




28.0



269.1



(89.6)%
















Interest expense




64.3



70.7



(9.1)%


Other expense (income), net




12.8



(6.0)



313.3%


       (Loss) Income Before Income Taxes




(49.1)



204.4



(124.0)%
















Income tax (benefit) expense




(61.0)



38.0



(260.5)%


Equity income from affiliates, net




(27.0)



(38.2)



(29.3)%


       Net Income




$                       38.9



$                     204.6



(81.0)%
















Earnings Per Common Share:












   Basic





$                       0.24



$                       1.23



(80.5)%


   Diluted





$                       0.23



$                       1.21



(81.0)%
















Weighted Average Common Shares Outstanding:












   Basic





165.0



165.8



(0.5)%


   Diluted





166.0



168.7



(1.6)%






























Adjusted Gross Profit (1)(2)




$                  1,062.3



$                  1,219.0



(12.9)%


Adjusted Income From Operations (1)




$                     334.1



$                     557.8



(40.1)%


Adjusted Net Income (1)




$                     242.0



$                     425.3



(43.1)%


Adjusted Diluted Earnings Per Share (1)




$                       1.46



$                       2.52



(42.1)%






























Statistics (as a % of net sales, except for income tax rate):                              




























GAAP Nine Months Ended September 30,



Adjusted (1) Nine Months Ended September 30,





2012



2011



2012



2011


Gross Profit (2)

26.7%



36.7%



35.5%



                        40.1%


Income From Operations

0.9%



8.8%



11.2%



18.3%


Net Income


1.3%



6.7%



8.1%



14.0%


Income Tax Rate

124.2%



18.6%



19.0%



21.5%




(1)

Adjusted financial measures exclude certain specified items as described and reconciled to comparable GAAP financial measures in the Reconciliation of GAAP to Non-GAAP Financial Measures contained in this press release.

(2)

Gross profit is defined as Net sales less Cost of products sold. Adjusted gross profit excludes certain specified items, as indicated in the previous footnote.



Hospira, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(dollars in millions, except for per share amounts)



















Three months ended September 30, 2012 Reconciliation of GAAP to Non-GAAP Financial Measures:
























Gross Profit (1) 


(Loss) Income

From Operations 


Net Income (2)


Diluted EPS

GAAP financial measures                                                                                                                        


$                          214.3


$                           (16.5)


$                              1.2


$                            0.01

Specified items:









  Amortization of certain intangible assets (A)


18.3


18.3


12.4


0.07

  Impairment of certain assets (B)


-


11.3


8.2


0.05

  Certain quality and product related charges (C)


97.3


97.3


60.9


0.37

  Capacity expansion related charges (D)


4.1


4.1


2.4


0.01

  Other restructuring charges (E)


-


(1.9)


(6.7)


(0.04)

Adjusted financial measures (3)


$                          334.0


$                          112.6


$                            78.4


$                            0.47




GAAP results for the three months ended September 30, 2012 include:


(A)

Amortization of certain intangible assets reported in Cost of products sold resulting from acquisitions including Mayne Pharma Limited ("Mayne Pharma"), Javelin Pharmaceuticals, Inc. ("Javelin Pharma") and a generic injectable business by Hospira Healthcare India Private Limited ("Hospira India").


(B)

Impairment of certain assets: $11.3 million reported in Restructuring, impairment, and (gain) on disposition of assets, net, related to impairments of certain intangible assets.


(C)

Certain quality and product related charges reported in Cost of products sold primarily include third party oversight and consulting costs, extended production downtime related costs, device product review and remediation costs to address identified issues, and costs for corrective actions. These charges are directly associated with Hospira's response to the United States Food and Drug Administration ("FDA") warning letters and charges related to certain device related remediation activities.


(D)

Capacity expansion related charges reported in Cost of products sold include start-up charges related to manufacturing capacity expansion in India.


(E)

Other Restructuring Charges: $(1.9) million reported in Restructuring, impairment, and (gain) on disposition of assets, net, for a gain on disposition of a non-strategic product line.



Three months ended September 30, 2011 Reconciliation of GAAP to Non-GAAP Financial Measures:


























Gross Profit (1) 


(Loss) Income

From Operations 


Net (Loss)

Income (2)


Diluted EPS


GAAP financial measures                                                                                                                         


$                          303.9


$                           (85.2)


$                           (88.9)


$                           (0.54)


Specified item:










  Amortization of certain intangible assets (A)


19.2


19.2


13.0


0.08


  Impairment of certain assets (B) 


-


15.2


10.4


0.06


  Certain quality and product related charges (C)


36.7


36.7


22.9


0.14


  Capacity expansion related charges (D)


1.5


1.5


1.0


0.01


  Goodwill impairment (E)


-


155.0


151.3


0.92


  Diluted shares impact








(0.01)


Adjusted financial measures (3)


$                          361.3


$                          142.4


$                          109.7


$                            0.66





GAAP results for the three months ended September 30, 2011 include:


(A)

Amortization of certain intangible assets: $19.2 million reported in Cost of products sold resulting from acquisitions including Mayne Pharma, Javelin Pharma and a generic injectable business by Hospira India.


(B)

Impairment of certain assets: $15.2 million reported in Restructuring, impairment and (gain) on disposition of assets, net, related to impairments of certain intangible assets.


(C)

Certain quality and product related charges reported in Cost of products sold primarily include third party oversight and consulting costs, extended production downtime related costs, device product review and remediation costs to address identified issues, and costs for corrective actions. These charges are directly associated with Hospira's response to the FDA warning letter and charges related to certain device related remediation activities.


(D)

Capacity expansion related charges reported in Cost of products sold include start-up charges related to manufacturing capacity expansion in India.


(E)

Goodwill impairment: $155.0 million reported in Restructuring, impairment and (gain) on disposition of assets, net related to Hospira's Europe, Middle East & Africa ("EMEA") reporting unit.























(1)

Gross profit is defined as Net sales less Cost of products sold.

(2)

Adjusted Net income is shown net of tax of $51.6 million and $29.0 million for the three months ended September 30, 2012 and 2011, respectively, based on the statutory tax rates in the various tax jurisdictions in which the items occurred.

(3)

The Non-GAAP financial measures contained in this press release (including adjusted gross profit, adjusted income from operations, adjusted net income and adjusted diluted Earnings Per Share) adjust for certain specified items. All Non-GAAP financial measures are intended to supplement the applicable GAAP measures and should not be considered in isolation from, or a replacement for, financial measures prepared in accordance with GAAP. Refer to Hospira’s filing on Form 8-K filed on November 7, 2012 for additional information.



Hospira, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(dollars in millions, except for per share amounts)



















Nine months ended September 30, 2012 Reconciliation of GAAP to Non-GAAP Financial Measures:
























Gross Profit (1) 


Income From

Operations 


Net Income (2)


Diluted EPS

GAAP financial measures                                                                                                                             


$                          797.8


$                            28.0


$                            38.9


$                            0.23

Specified items:









  Facilities Optimization charges (A)


-


17.4


10.7


0.06

  Amortization of certain intangible assets (B)


54.8


54.8


37.8


0.23

  Impairment of certain assets (C)


-


14.0


15.3


0.09

  Certain quality and product related charges (D)


192.6


192.6


120.5


0.73

  Capacity expansion related charges (E)


11.3


11.3


7.6


0.05

  Other restructuring charges (F)


5.8


16.0


11.2


0.07

Adjusted financial measures (3)


$                       1,062.3


$                          334.1


$                          242.0


$                            1.46




GAAP results for the nine months ended September 30, 2012 include:


(A)

Facilities Optimization charges: $17.4 million reported in Restructuring, impairment, and (gain) disposition of assets, net. The equipment and facility impairment charges relate to Hospira's plans to exit a specialty injectable drug finishing operation.


(B)

Amortization of certain intangible assets reported in Cost of products sold resulting from acquisitions including Mayne Pharma, Javelin Pharma and a generic injectable business by Hospira India.


(C)

Impairment of certain assets: $14.0 million reported in Restructuring, impairment, and (gain) on disposition of assets, net, and $8.4 million reported in Other expense (income), net. These charges relate to impairments of certain intangible assets and a cost method investment, respectively.


(D)

Certain quality and product related charges reported in Cost of products sold primarily include third party oversight and consulting costs, extended production downtime related costs, device product review and remediation costs to address identified issues, and costs for corrective actions. These charges are directly associated with Hospira's response to the FDA warning letters and charges related to certain device related remediation activities.


(E)

Capacity expansion related charges reported in Cost of products sold include start-up charges related to manufacturing capacity expansion in India.


(F)

Other Restructuring Charges: $5.8 million reported in Cost of products sold and $10.2 million reported in Restructuring, impairment, and (gain) on disposition of assets, net. These charges include inventory charges, equipment impairments, contract termination charges and gain on disposition associated with Hospira's exit of non-strategic product lines.



Nine months ended September 30, 2011 Reconciliation of GAAP to Non-GAAP Financial Measures:


























Gross Profit (1) 


Income From

Operations 


Net Income (2)


Diluted EPS


GAAP financial measures                                                                                                                                


$                       1,116.4


$                          269.1


$                          204.6


$                            1.21


Specified items:










  Project Fuel and related charges (A)


5.0


9.6


6.3


0.04


  Facilities Optimization charges (B)


0.8


1.1


0.7


0.01


  Amortization of certain intangible assets (C)


58.6


58.6


40.9


0.24


  Impairment of certain assets (D)


-


18.4


11.5


0.07


  Certain quality and product related charges (E)


36.7


36.7


22.9


0.13


  Capacity expansion related charges (F)


1.5


1.5


1.0


0.01


  Other restructuring charges (G)


-


7.8


5.8


0.03


  Goodwill impairment (H)


-


155.0


151.3


0.90


  Settlement of IRS tax audit benefit (I)


-


-


(19.7)


(0.12)


Adjusted financial measures (3)


$                       1,219.0


$                          557.8


$                          425.3


$                            2.52





GAAP results for the nine months ended September 30, 2011 include:


(A)

Project Fuel and related charges: $5.0 million reported in Cost of products sold, $3.4 million reported in Restructuring, impairment and (gain) on disposition of assets, net and $1.2 million reported in Selling, general and administrative. Project Fuel initiatives include costs for process optimization implementation, severance and other employee benefits, exit costs, and other asset charges.


(B)

Facilities Optimization charges: $0.8 million reported in Cost of products sold and $0.3 million reported in Restructuring, impairment and (gain) on disposition of assets, net. These charges relate to facilities optimization from the closure or departure from certain manufacturing and R&D facilities and include costs for severance and other employee benefits, accelerated depreciation and relocation of production and R&D operations.


(C)

Amortization of certain intangible assets: $58.6 million reported in Cost of products sold resulting from acquisitions including Mayne Pharma, Javelin Pharma, and a generic injectible business by Hospira India.


(D)

Impairment of certain assets: $18.4 million reported in Restructuring, impairment and (gain) on disposition of assets, net, related to impairments of certain intangible assets.


(E)

Certain quality and product related charges reported in Cost of products sold primarily include third party oversight and consulting costs, extended production downtime related costs, device product review and remediation costs to address identified issues, and costs for corrective actions. These charges are directly associated with Hospira's response to the FDA warning letter and charges related to certain device related remediation activities.


(F)

Capacity expansion related charges reported in Cost of products sold include start-up charges related to manufacturing capacity expansion in India.


(G)

Other restructuring charges: $7.8 million reported in Restructuring, impairment and (gain) on disposition of assets, net for distribution contract termination charges related to certain Latin America operations.


(H)

Goodwill impairment: $155.0 million reported in Restructuring, impairment and (gain) on disposition of assets, net related to Hospira's EMEA reporting unit.


(I)

Settlement of IRS tax audit benefit of $19.7 million reported in Income tax expense. This discrete income tax benefit is related to the completion and effective settlement of U.S. tax return audits.























(1)

Gross profit is defined as Net sales less Cost of products sold.

(2)

Adjusted Net income is shown net of tax of $111.4 million and $48.3 million exclusive of the 2011 tax audit settlement for the nine months ended September 30, 2012 and 2011, respectively, based on the statutory tax rates in the various tax jurisdictions in which the items occurred.

(3)

The Non-GAAP financial measures contained in this press release (including adjusted gross profit, adjusted income from operations, adjusted net income and adjusted diluted Earnings Per Share) adjust for certain specified items. All Non-GAAP financial measures are intended to supplement the applicable GAAP measures and should not be considered in isolation from, or a replacement for, financial measures prepared in accordance with GAAP. Refer to Hospira’s filing on Form 8-K filed on November 7, 2012 for additional information.



Hospira, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(dollars in millions)



















September 30,


December 31,

Assets

2012


2011








Current Assets:





Cash and cash equivalents

$               841.2


$               597.5


Trade receivables, less allowances of $14.1 in 2012 and $15.7 in 2011

585.1


639.9


Inventories

1,009.2


1,027.0


Deferred income taxes

163.8


174.4


Prepaid expenses

70.6


45.9


Other receivables

120.1


86.0


       Total Current Assets

2,790.0


2,570.7

Property and equipment, net

1,405.7


1,355.0

Intangible assets, net

288.5


355.8

Goodwill


1,083.8


1,082.9

Deferred income taxes

284.1


232.2

Investments

64.7


48.7

Other assets

157.4


133.8


       Total Assets

$            6,074.2


$            5,779.1





Liabilities and Shareholders' Equity











Current Liabilities:





Short-term borrowings

$                 87.0


$                 36.6


Trade accounts payable

267.7


241.3


Salaries, wages and commissions

130.0


113.0


Other accrued liabilities

519.5


456.9


       Total Current Liabilities

1,004.2


847.8

Long-term debt

1,708.8


1,711.9

Deferred income taxes

2.8


5.7

Post-retirement obligations and other long-term liabilities

327.4


275.7

Commitments and Contingencies




Total Shareholders' Equity

3,031.0


2,938.0

Total Liabilities and Shareholders' Equity

$            6,074.2


$            5,779.1



Hospira, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(dollars in millions)










Nine months ended September 30,


2012


2011





Cash Flow From Operating Activities:




 Net income

$                 38.9


$               204.6

 Adjustments to reconcile net income to net cash from operating activities-




   Depreciation

122.2


123.6

   Amortization of intangible assets

62.6


67.1

   Stock-based compensation expense

29.9


32.1

   Undistributed equity income from affiliates

(27.0)


(38.2)

   Distributions received from equity method affiliates

-


30.3

   Deferred income tax and other tax adjustments

(47.0)


(31.9)

   Impairment and other asset charges

58.3


181.4

   Gains on disposition of assets

(5.9)


-

 Changes in assets and liabilities-




   Trade receivables

55.4


(7.8)

   Inventories

9.5


(161.4)

   Prepaid expenses and other assets

(39.9)


(53.7)

   Trade accounts payable

31.1


(84.8)

   Other liabilities

114.5


4.6

 Other, net

1.8


11.1

     Net Cash Provided by Operating Activities

404.4


277.0





Cash Flow From Investing Activities:




 Capital expenditures (including instruments placed with or leased to customers)

(201.8)


(211.3)

 Other payments to acquire business

(15.0)


-

 Purchases of intangibles and other investments

(9.6)


(5.2)

 Proceeds from disposition of businesses and assets

9.6


13.3

   Net Cash Used in Investing Activities

(216.8)


(203.2)





Cash Flow From Financing Activities:




 Other borrowings, net

45.8


8.5

 Common stock repurchased

-


(200.0)

 Excess tax benefit from stock-based compensation arrangements

2.1


7.4

 Proceeds from stock options exercised

6.9


47.5

   Net Cash Provided by (Used in) Financing Activities

54.8


(136.6)





Effect of exchange rate changes on cash and cash equivalents

1.3


(14.1)





Net change in cash and cash equivalents

243.7


(76.9)

Cash and cash equivalents at beginning of period

597.5


604.3

Cash and cash equivalents at end of period

$               841.2


$               527.4





Supplemental Cash Flow Information:




Cash paid during the period-




  Interest

$                 65.8


$                 82.4

  Income taxes, net of refunds

$                   0.5


$                 34.0



Hospira, Inc.

Net Sales by Product Line

(Unaudited)

(dollars in millions)






















Three Months Ended September 30,


Nine Months Ended September 30,


2012


2011


% Change at

Actual Currency

Rates



% Change at

Constant Currency

Rates (1)




2012


2011


% Change at

Actual Currency

Rates


% Change at

Constant Currency

Rates (1)


Americas--




















  Specialty Injectable Pharmaceuticals

$                502.0


$                485.2


3.5%



4.4%




$                1,451.4


$               1,525.2


(4.8)%


(4.0)%


  Medication Management

197.6


199.9


(1.2)%



(0.3)%




624.2


596.4


4.7%


5.3%


  Other Pharma

89.5


82.8


8.1%



8.2%




294.1


298.3


(1.4)%


(1.1)%


Total Americas                                                                             

789.1


767.9


2.8%



3.6%




2,369.7


2,419.9


(2.1)%


(1.3)%






















Europe, Middle East & Africa--




















  Specialty Injectable Pharmaceuticals

76.6


75.2


1.9%



13.5%




235.1


219.8


7.0%


16.6%


  Medication Management

27.1


29.6


(8.4)%



2.7%




88.1


97.3


(9.5)%


(1.2)%


  Other Pharma

19.2


24.5


(21.6)%



(17.3)%




62.9


66.8


(5.8)%


(1.3)%


Total Europe, Middle East & Africa

122.9


129.3


(4.9)%



5.2%




386.1


383.9


0.6%


8.9%






















Asia Pacific--




















  Specialty Injectable Pharmaceuticals

64.6


66.4


(2.7)%



(0.9)%




187.3


195.6


(4.2)%


(2.5)%


  Medication Management

11.9


11.1


7.2%



8.2%




35.6


33.6


6.0%


6.4%


  Other Pharma

5.5


2.0


175.0%



177.0%




14.5


10.1


43.6%


43.6%


Total Asia Pacific

82.0


79.5


3.1%



4.9%




237.4


239.3


(0.8)%


0.7%






















Net Sales

$                994.0


$                976.7


1.8%



3.9%




$                2,993.2


$               3,043.1


(1.6)%


0.1%






















Global--




















  Specialty Injectable Pharmaceuticals

$                643.2


$                626.8


2.6%



4.9%




$                1,873.8


$               1,940.6


(3.4)%


(1.5)%


  Medication Management

236.6


240.6


(1.7)%



0.5%




747.9


727.3


2.8%


4.5%


  Other Pharma

114.2


109.3


4.5%



5.6%




371.5


375.2


(1.0)%


0.1%






















Net Sales

$                994.0


$                976.7


1.8%



3.9%




$                2,993.2


$               3,043.1


(1.6)%


0.1%




(1)

The Non-GAAP financial measures contained in this press release include comparisons at constant currency rates, which reflect comparative local currency balances at prior period foreign exchange rates. Hospira calculated these percentages by taking current period reported net sales less the respective prior period reported net sales, divided by the prior period reported net sales, all at the respective prior period's foreign exchange rates. This measure provides information on the change in net sales assuming that foreign currency exchange rates have not changed between the prior and the current period. Management believes the use of this measure aids in the understanding of our change in net sales without the impact of foreign currency and provides greater transparency into Hospira's results of operations. Management uses these measures internally to monitor business unit performance and in evaluating management performance. These measures are intended to supplement the applicable GAAP measures and should not be considered in isolation from or a replacement for, financial measures prepared in accordance with GAAP.  



SOURCE Hospira, Inc.

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest AJAXWorld RIA Stories
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups ...
SYS-CON Events announces a new pavilion on the Cloud Expo floor where WebRTC converges with the Internet of Things. Pavilion will showcase WebRTC and the Internet of Things. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation ...
DevOps, Cloud and Your SDLC Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading i...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With “smart” appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest...
Are you developing or hosting PHP applications? Are you doing performance sanity checks along your delivery pipeline? No? Not Yet? Then start with a quick check. It only takes 15 minutes and it really pays off. As a developer you can improve your code, and as somebody responsible...
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
Click to Add our RSS Feeds to the Service of Your Choice:
Google Reader or Homepage Add to My Yahoo! Subscribe with Bloglines Subscribe in NewsGator Online
myFeedster Add to My AOL Subscribe in Rojo Add 'Hugg' to Newsburst from CNET News.com Kinja Digest View Additional SYS-CON Feeds
Publish Your Article! Please send it to editorial(at)sys-con.com!

Advertise on this site! Contact advertising(at)sys-con.com! 201 802-3021


SYS-CON Featured Whitepapers
ADS BY GOOGLE