News Column

North American business lifts McKesson 4Q income

May 12, 2014

NEW YORK (AP) Prescription drug distributor McKesson said Monday its net income rose 43 percent in its fiscal fourth quarter on stronger results in North America and a decrease in costs.

McKesson said North American distribution and service revenue improved because the market expanded and it received more revenue from longtime customers. A year ago the company took a series of charges related to the sale of a business in Mexico and other moves. McKesson also issued a fiscal 2015 forecast that was about equal to Wall Street's estimates.

McKesson Corp. shares rose $3.23 to $174.23 Monday, and they picked up $5.27, or 3 percent, to $179.50 in aftermarket trading.

The San Francisco company said its income increased to $371 million, or $1.58 per share, from $259 million, or $1.10 per share. McKesson said it earned $2.55 per share from continuing operations. Revenue grew 25 percent, to $38.14 billion from $30.52 billion.

FactSet says analysts expected net income of $2.39 per share from continuing operations and $34.2 billion in revenue.

McKesson's fourth quarter ended on March 31. A year ago the company reported a $191 million impairment charge related to the sale of a drug distribution company in Mexico. It also took charges related to job cuts, facility closures, and the exiting of its international technology and hospital automation units.

The company said its annual net income fell 6 percent, to $1.26 billion, or $5.41 per share. Excluding special items, McKesson said its income totaled $8.35 per share. Revenue increased 13 percent to $137.61 billion.

In fiscal 2015 McKesson expects to report adjusted net income of $10.40 to $10.80 per share. Analysts are forecasting $10.58 per share on average.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Associated Press

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters