Hospira swings to profit in first quarter, beats estimates

LAKE FOREST, Ill.—Drug maker Hospira Inc. said Wednesday it swung to a profit in the first quarter, boosted by strong sales from its injectables business.

For the three months ended March 31, the company reported income of $65.4 million, or 41 cents per share, compared with a loss of $29.4 million, or 19 cents per share, in the year-ago period.

On an adjusted basis, excluding acquisition-related costs and other one-time items, income slipped 6 percent to $87.9 million, or 55 cents per share, from $93.9 million, or 59 cents per share.

Analysts polled by Thomson Financial, on average, estimated earnings of 54 cents per share on sales of $871.3 million. Analyst estimates typically exclude one-time, unusual items.

Revenue rose 14 percent to $888.7 million from $782.8 million in the first quarter of 2007.

Revenue was driven by strong sales in the company's global specialty injectables business, Hospira said.

Sales from Hospira's Americas specialty injectables segment grew 17 percent to $340.7 million, while sales in the Europe, Middle East & Africa injectables segment grew 60 percent to $78.3 million. Asia Pacific specialty injectables revenue increased 55 percent to $45.6 million.

Adjusted income declined in part due to higher expense associated with the timing of stock-based compensation grants, higher selling, general and administrative expenses, and an increase in research and development expense, the company said.

• Searched
• E-Mailed