*DJ McKesson CEO: Evaluating More Acquisition Opportunities
07-27-05 1720ET
Copyright (c) 2005 Dow Jones & Company, Inc.
07/27 18:45 DJ McKesson CEO: Evaluating More Acquisition Opportunities
By Paula L. Stepankowsky
Of DOW JONES NEWSWIRES
McKesson Corp. (MCK) expects to close two recently announced acquisitions in August, and the company is evaluating similar acquisition opportunities, said Chief Executive John Hammergren on a call with analysts following release of the company's fiscal first-quarter earnings Wednesday.
On the call, Hammergren said that the previously announced acquisitions of Medcon Ltd. (MDCN.TV) and D&K Healthcare Resources Inc. (DKHR) are planned to close in August and that the deals will begin to add to earnings in fiscal 2007.
Hammergren said that McKesson will continue to be disciplined in its approach to acquisitions and that it is "also evaluating current holdings to see if they fit."
Results from the two acquisitions are not included in the San Francisco company's estimate issued earlier this year that it will earn between $2.25 and $2.40 a share in fiscal 2006, executives said on the call.
Wall Street expects the company to earn $2.29 a share for the year, up from earnings of $2.19 a share a year ago, excluding an income tax benefit and a securities litigation charge.
After the market closed Wednesday, McKesson announced its fiscal first-quarter profit rose 4% as higher revenue at three of its major units offset the securities litigation charge.
The health-care supply-management company said earnings for the quarter ended June 30 rose to $171 million, or 55 cents a share, from $164 million, or 55 cents a share, in the year-ago period.
Excluding a securities litigation charge of $35 million, the company earned $ 206 million, or 66 cents a share.
The company's legal expenses in the first quarter were "slightly higher" than expected, said Jeff Campbell, chief financial officer, on the call.
"We still expect this number to trend down over time, but this reduction is taking more time than we anticipated," Campbell said.
Revenue climbed 10% to $21.06 billion from $19.18 billion a year earlier, boosted by a 10% jump in Pharmaceutical Solutions revenue to $19.96 billion from $18.17 billion. The company attributed higher revenue at the unit to new distribution agreements and revenue growth in Canada.
In addition, the unit benefited from a $51 million settlement of an antitrust class-action lawsuit. The company had a similar $41 million benefit in the year- ago period.
At Medical Surgical Solutions, first-quarter revenue rose 5% to $744 million, while Provider Technologies reported a 17% revenue increase to $350 million from $300 million a year ago.
-By Paula L. Stepankowsky, Dow Jones Newswires; 360-636-2008; paula.stepankowsky@dowjones.com
(END) Dow Jones Newswires
07-27-05 1845ET
Copyright (c) 2005 Dow Jones & Company, Inc. |
