Publish date:

Productivity Costs Cut Wyeth Profits

But excluding the charges, profit meets Wall Street expectations.



reported third-quarter results that were in line with expectations, although "productivity initiatives" continue to deplete the nonadjusted bottom line.

The drugmaker on Thursday posted net income of $1.15 billion, or 84 cents a share, compared to $1.16 billion, or 85 cents a share, in 2006. The 2007 numbers included an after-tax charge of $86 million, or 6 cents a share, related to what the company calls "productivity initiatives," while the 2006 numbers included an after-tax charge of $54.9 million, or 4 cents a share, and a favorable income tax adjustment of $70.4 million, or 5 cents a share.

The productivity initiatives, which were launched in 2005, include costs related to the closure of an Enbrel manufacturing facility, a move that's expected to be completed in the fourth quarter.

TheStreet Recommends

Net income before these items was $1.2 billion, or 90 cents a share, in the recent quarter, compared to $1.1 billion, or 84 cents a share, in the year-ago period.

Analysts surveyed by Thomson Financial were expecting 90 cents a share on revenue of $5.5 billion.

Adjusted worldwide net revenue for the quarter came in just above the estimate at $5.6 billion compared to $5.1 billion in 2006. Pharmaceuticals sales increased 10% to $4.7 billion, while consumer health care sales climbed 8% to $715 million primarily due to an increase in sales of Advil, Advil PM and Caltrate. And sales of medicines and vaccines for animals increased 11% to $235 million.

Looking ahead, CEO Robert Essner said on a conference call Wednesday that the company continues to expect full-year earnings to range from $3.48 to $3.56 a share, up about 12% over last year.

Shares rose 65 cents, or 1.4%, to $47 in recent trading Thursday.