Hospira 3Q net sales increase 2.9 pct.
PRNewswire
Lake Forest-based Hospira Inc. reported third quarter net sales were up 2.9 percent, buoyed by strong domestic sales of its oncolytic drug docetaxel.
Net sales for the quarter were $977 million, compared to $949 million in the third quarter of 2010, the company said in a release. It noted that the increase was partially offset by the impact of certain actions taken in response to a U.S. Food and Drug Administration 2010 warning letter and subsequent observations related to the company’s manufacturing facility in Rocky Mount, N.C., and device quality and supply-related issues.
“Despite the continued contribution of recently launched products to revenue growth, our third-quarter results were significantly impacted by developments related to our quality-improvement initiatives,” said F. Michael Ball, chief executive officer. “Addressing these issues is Hospira’s top priority, and our organization is committed to full resolution.
“I remain confident that Hospira will emerge from this process a stronger, more competitive global company that is optimally positioned to serve the needs of our customers and patients, and deliver strong value to our shareholders,” Ball added.
On a constant-currency basis, third-quarter net sales increased slightly compared to the third quarter of 2010.
Adjusted income from operations for the third quarter was $142 million, compared to $189 million during the same period last year. The decline is primarily due to charges and costs associated with certain quality actions and related inventory losses, the company said.
The effective tax rate on an adjusted basis in the quarter was 16.9 percent, a decrease from the third-quarter 2010 rate of 24 percent. The decrease primarily reflects the revised projections for full-year 2011 adjusted earnings before taxes.
Cash flow from operations for the first nine months of 2011 was $277 million, compared to the $235 million for the same period in 2010. The increase primarily reflects the timing of chargeback and rebate payments, partially offset by higher inventory levels and timing of accounts payable payments.
Capital expenditures were $211 million for the first nine months of 2011, compared to $142 million for the first nine months of 2010. The increase is primarily related to the company’s capacity-expansion initiatives.