This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hospira Management Discusses Q4 2011 Results - Earnings Call Transcript

On today's conference call, non-GAAP financial measures will be used to help investors understand Hospira's base business performance. These non-GAAP financial measures are reconciled to the comparable GAAP financial measures in the press release and Form 8-K issue this morning, and are also available on the Presentation page on the Investor Relations section of our website.

Also posted on our website is a presentation of complementary materials that summarize the points of today's call. While we will not be speaking directly to the materials, it is posted on the Presentation page at The material is for your reference to use as an enhanced communication tool.

Finally, we will be ending the call at the top of the hour this morning. In order to allow as many of you as possible to ask a question, we're limiting each person to 1 question. We ask for your cooperation in this respect.

And with that, I'll now turn the call over to Mike.

Thomas E. Werner

Thanks, Mike. Good morning, everyone. First, I'd take you to a brief review of the income statement for the fourth quarter and 2011.

Adjusted gross margin as a percentage of sales in the quarter was 34.0%, down from 39.1% in the fourth quarter of 2010. This was due primarily to inventory losses in certain quality actions. For the full year, adjusted gross margin finished at 38.5% which was in line with our revised guidance for the year.

Research and development expense in the fourth quarter was $67 million or 6.6% of revenue. For the full year, R&D expense was 6.4% of revenue.

SG&A expense in the fourth quarter was $167 million or 16.5% of revenue. And for the full year, SG&A as a percentage of revenue was 15.7%.

Adjusted operating income was $111 million compared to $142 million in the fourth quarter of last year. For the full year, adjusted operating margin was within our revised guidance range at 16.5%.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs