Strong distribution, technology sales lift McKesson profit

SAN JOSE, Calif.—McKesson Corp.'s fiscal fourth quarter profit rose 19 percent because of strong sales in its distribution and technology units.

The San Francisco-based company said Monday it earned $307 million, or $1.05 per share, compared with profit of $257 million, or 85 cents, during the same period a year earlier.

Quarterly revenue rose 9 percent to $26.23 billion.

Excluding special costs, the nation's largest prescription drug distributor earned $1.04 per share in the quarter ended March 31.

On that same basis, analysts surveyed by Thomson Financial expected earnings per share of $1.

For the full year, the company earned $990 million, or $3.32 per share, on revenue of $101.7 billion, also up 9 percent from a year ago.

Analysts expected yearly earnings of $3.34 on revenue of $101.2 billion. The company itself had predicted yearly profits in the range of $3.22 to $3.32 per share.

"The fourth-quarter and full-year financial results demonstrate continued operating excellence and the benefit of acquisitions and share repurchases to create additional shareholder value," Chief Executive John H. Hammergren said in a statement.

Shares of McKesson closed the day at $54.09, down 21 cents, or less than one percent. After the results were announced, shares climbed $2.46, or 4.6 percent, to $56.55 in after-hours trading.

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