- Reports Broad-Based Net Sales Growth of 20% from Continuing Operations
Driven by Strong Performance of Pharmaceutical Business
- Records Pre-Tax Earnings from Continuing Operations of $1.3 Billion
Representing an Increase of 51% From First Quarter 2007
- Posts First Quarter 2008 GAAP EPS from Continuing Operations of $0.35
Compared to $0.33 in 2007 and Double-Digit Non-GAAP EPS Growth from
Continuing Operations of $0.42 Compared to $0.36 in 2007
- Reaffirms 2008 EPS Guidance and 2007-2010 Expected 15% Non-GAAP EPS CAGR
- Announces Plan to File Initial Public Offering of Approximately 10% of
Mead Johnson Nutritionals
NEW YORK, April 24 /PRNewswire-FirstCall/ -- Bristol-Myers Squibb
Company (NYSE: BMY) today reported strong double-digit net sales growth and
solid earnings growth for the first quarter 2008 and reaffirmed 2008
earnings guidance.
"Our medicines are performing well, as was evident this quarter, and
our pipeline is steadily advancing. This is good news for patients and
healthcare professionals who count on us, as well as shareholders who
invest in us," said James M. Cornelius, chairman and chief executive
officer, Bristol-Myers Squibb. "As we have pledged to patients and
investors, we remain focused on discovering and developing medicines that
will help people prevail in their fight against serious disease. We
continue to review options within our "String of Pearls" strategy, to
further complement our existing pipeline, technology and talent pool.
"We also continue to invest in our business as we embed a mindset of
continuous improvement, which is helping us grow our profit margins. Our
strong first quarter performance and our focus on execution put us on the
right track for continued growth in 2008."
UPDATE ON STRATEGIC REVIEW OF NON-PHARMACEUTICAL BUSINESSES
Bristol-Myers Squibb completed the sale of Bristol-Myers Squibb Medical
Imaging to Avista Capital Partners in January 2008 for approximately $525
million.
The company has made significant progress on a strategic direction for
ConvaTec and expects to provide updates in the near future.
Bristol-Myers Squibb currently plans to file a registration statement
by year-end to sell approximately 10 percent and no more than 20 percent of
Mead Johnson Nutritionals to the public through an initial public offering
and to retain at least an 80% equity interest in Mead Johnson Nutritionals
as part of the overall business portfolio for the foreseeable future. After
extensively considering strategic options, management believes this plan
will allow Mead Johnson Nutritionals to implement its growth plans,
increase shareholder value, and maintain its important financial
contribution to Bristol-Myers Squibb. The execution of the plan is
dependent upon and subject to a number of factors and uncertainties
including business and market conditions.
FIRST QUARTER RESULTS
-- Bristol-Myers Squibb posted first quarter 2008 net sales from
continuing operations of $5.2 billion, an increase of 20% compared to
the same period in 2007, driven by increased pharmaceutical net sales
which totaled $4.2 billion in the first quarter of 2008. The net sales
growth included a 9% increase from product performance and a 5%
favorable foreign exchange impact. Sales growth was also estimated to
be 6% favorably impacted by the residual sales of generic clopidogrel
bisulfate in the first quarter of 2007, after which time the generic
inventory in the distribution channels was substantially depleted.
U.S. net sales from continuing operations increased 23% to $2.9 billion
for the quarter compared to first quarter 2007, primarily due to the
continued growth of ABILIFY(R) and increased sales of PLAVIX(R), as
well as strong results from the HIV and hepatitis portfolio and
increased contribution from recent launches. International net sales
from continuing operations increased 16% to $2.3 billion, including a
12% favorable foreign exchange impact.
-- The company recorded earnings from continuing operations before
minority interest and income taxes of $1,290 million in the first
quarter of 2008, an increase of 51% compared to $852 million in the
same period in 2007. The increase was driven by strong product
performance in the pharmaceutical business.
-- On a GAAP basis, the company reported first quarter 2008 net earnings
from continuing operations of $701 million, or $0.35 per diluted share,
compared to net earnings from continuing operations of $643 million or
$0.33 per diluted share for the same period in 2007. The 2008 operating
results include charges of $113 million associated with the
implementation of the previously announced Productivity Transformation
Initiative (PTI), while the 2007 results included a lower tax rate of
8.0% reflecting a tax benefit due to a favorable resolution of certain
tax matters. On a non-GAAP basis excluding specified items, first
quarter 2008 net earnings from continuing operations were $842 million,
or $0.42 per diluted share, compared to $697 million, or $0.36 per
diluted share for the same period in 2007.
-- Cost of products sold, as a percentage of net sales, increased to 32.0%
in the first quarter of 2008 compared to 31.0% in the same period in
2007. Costs of products sold include manufacturing rationalization
charges of $96 million, or 1.9% of net sales, related to implementation
of the PTI in 2008, compared to $16 million, or 0.4% of net sales, in
2007. Excluding these charges, gross margin improved due to a favorable
pharmaceutical product mix.
-- Marketing, selling and administrative expenses increased by 8% to $1.2
billion in the first quarter of 2008 compared to the same period in
2007, primarily due to unfavorable foreign exchange impact and higher
selling expenses in support of key products. General and administrative
expenses decreased from 2007 levels resulting from the company's
ongoing productivity initiatives, offset by implementation costs of the
initiatives.
-- Advertising and product promotion spending increased by 23% to $330
million in the first quarter of 2008 from $268 million in the same
period in 2007, primarily due to increased promotion of new indications
for ABILIFY(R) in the United States and Europe and increased investment
to support PLAVIX(R) and ORENCIA(R).
-- Research and development expenses increased 1% to $795 million in the
first quarter of 2008 from $791 million in the same period in 2007. The
increase primarily reflects increased development spending for pipeline
compounds partially offset by higher licensing upfront payments in
2007.
INCOME TAX
The effective tax rate on earnings from continuing operations before
minority interest and income taxes was 27.8% for the three months ended
March 31, 2008, compared with 8.0% in the first quarter of 2007. The first
quarter 2007 effective tax rate included $105 million of benefit due to a
favorable resolution of certain tax matters, including a $39 million
benefit related to a 2006 specified item. The company expects the full year
2008 non-GAAP effective tax rate from continuing operations to be in line
with the previously issued guidance of approximately 24%.
SPECIFIED ITEMS
In the three months ended March 31, 2008 and 2007, the company recorded
specified income and expense items that affected the comparability of the
results. This included first quarter 2008 charges of $113 million in
connection with the execution of the previously announced PTI and $25
million related to an additional impairment of the company's investments in
auction rate securities that were previously impaired.
For information on specified items, see Appendix 1. Details reconciling
these non-GAAP amounts with GAAP amounts including specified items are
provided in Appendix 1 attached and in supplemental materials available on
the company's website.
PHARMACEUTICAL BUSINESS PERFORMANCE
U.S. pharmaceutical sales increased 26% to $2.5 billion in the first
quarter of 2008 compared to the same period in 2007, primarily due to the
continued growth of ABILIFY(R) and increased sales of PLAVIX(R), as well as
strong results from the HIV and hepatitis portfolio and increased
contribution from recent launches.
International pharmaceutical sales increased 14%, including a 12%
favorable foreign exchange impact, to $1.7 billion in the first quarter of
2008 compared to the same period in 2007. The increase was primarily due to
strong results from ABILIFY(R) and increased contribution from recent
launches including BARACLUDE(R) and SPRYCEL(TM), partially offset by
continued generic erosion of PRAVACHOL(R) and TAXOL(R). The company's
reported international sales do not include copromotion sales reported by
its alliance partner, sanofi-aventis, for PLAVIX(R) and
AVAPRO(R)/AVALIDE(R), which continue to show growth in the first quarter of
2008.
-- Sales of PLAVIX(R), a platelet aggregation inhibitor that is part of
the company's alliance with sanofi-aventis increased 39% to $1,308
million in the first quarter of 2008, from $938 million in the same
period in 2007. Sales of PLAVIX(R) increased in the U.S. to $1,139
million in the first quarter of 2008 from $787 million in the same
period in 2007. The comparison to the first quarter 2007 sales reflects
the adverse impact of generic competition for PLAVIX(R) in 2007, which
the company estimates to be in the range of $200 million to $250
million. Estimated total U.S. prescription demand for clopidogrel
bisulfate (branded and generic) increased by 4% in the first quarter of
2008 compared to 2007. Estimated total U.S. prescription demand for
branded PLAVIX(R) increased by 78% in the same period.
-- Total revenue for ABILIFY(R), an agent for the treatment of
schizophrenia, bipolar disorders and major depressive disorder,
increased 24% to $454 million in the first quarter of 2008 from $366
million in the same period in 2007. U.S. sales increased 19% to $348
million in the first quarter 2008 from $293 million in the same period
in 2007, primarily due to higher demand. Estimated total U.S.
prescription demand increased approximately 14% compared to the same
period last year. International sales increased 45%, including a 16%
favorable foreign exchange impact, to $106 million in the first quarter
of 2008 from $73 million in the same period in 2007, due to continued
growth across European markets. Total revenue for ABILIFY(R) primarily
consists of alliance revenue representing the company's 65% share of
net sales in countries where it copromotes with Otsuka Pharmaceutical
Co., Ltd.
-- Sales of AVAPRO(R)/AVALIDE(R), an angiotensin II receptor blocker for
the treatment of hypertension, also part of the sanofi-aventis
alliance, increased 13%, including a 6% favorable foreign exchange
impact, to $305 million in the first quarter of 2008 from $270 million
in the same period in 2007. U.S. sales increased 7% to $174 million in
the first quarter of 2008 from $163 million in the same period in 2007
primarily due to higher average net selling prices, partially offset by
lower demand. Estimated total U.S. prescription demand decreased
approximately 7% compared to 2007. International sales increased
22%, including a 14% favorable foreign exchange impact, to $131 million
compared to $107 million in the same period in 2007.
-- Sales of REYATAZ(R), a protease inhibitor for the treatment of HIV,
increased 13% to $297 million in the first quarter of 2008 from $263
million in the same period in 2007. U.S. sales increased 12% to $160
million in the first quarter of 2008 from $143 million in the same
period in 2007, primarily due to higher demand. Estimated total U.S.
prescription demand increased approximately 12% compared to the same
period in 2007. International sales increased 14%, including an 11%
favorable foreign exchange impact, to $137 million in the first quarter
of 2008 from $120 million in the same period in 2007.
-- Sales of the SUSTIVA(R) Franchise, a non-nucleoside reverse
transcriptase inhibitor for the treatment of HIV, increased 21% to $273
million in the first quarter of 2008 from $226 million in the same
period in 2007. U.S. sales increased 22% to $175 million in the first
quarter of 2008 from $144 million in the same period in 2007, primarily
due to higher demand for ATRIPLA(TM). Estimated total U.S. prescription
demand increased approximately 15% compared to 2007. International
sales increased 20%, including an 11% favorable foreign exchange
impact, to $98 million in the first quarter of 2008 from $82 million in
the same period in 2007. Total revenue for the SUSTIVA(R) Franchise
includes sales of SUSTIVA(R), as well as revenue from bulk efavirenz
included in the combination therapy ATRIPLA(TM), which is sold through
a joint venture in the U.S., Canada and Europe with Gilead Sciences,
Inc.
-- Sales of BARACLUDE(R), an oral antiviral agent for the treatment of
chronic hepatitis B, increased 140% to $108 million in the first
quarter of 2008 from $45 million in the same period in 2007, due to
continued growth across all markets.
-- Sales of ORENCIA(R), a fusion protein indicated for rheumatoid
arthritis, increased 112% to $87 million in the first quarter of 2008
from $41 million in the same period in 2007, primarily due to strong
growth in the U.S.
-- Sales of ERBITUX(R), which is sold by the company almost exclusively in
the U.S., increased 17% to $187 million in the first quarter of 2008
from $160 million in the same period in 2007, due to growth in the use
for head and neck and colorectal cancer. ERBITUX(R) is marketed by the
company under a distribution and copromotion agreement with ImClone
Systems Incorporated.
-- Sales for SPRYCEL(TM), an oral inhibitor of multiple tyrosine kinases
and indicated for treatment of chronic myeloid leukemia, increased to
$66 million in the first quarter of 2008 from $21 million in the same
period in 2007. This growth was driven by additional launches in
various international markets as well as growth in the U.S.
-- Sales of IXEMPRA(TM), a microtubule inhibitor for the treatment of
patients with metastatic or locally advanced breast cancer, were $25
million in the first quarter of 2008. IXEMPRA(TM) was launched in the
U.S. in October 2007.
MEAD JOHNSON NUTRITIONALS, CONVATEC PERFORMANCE
MEAD JOHNSON NUTRITIONALS
-- Worldwide Nutritional sales increased 16%, including a 5% favorable
foreign exchange impact, to $703 million in the first quarter of 2008
from $606 million in the same period in 2007. U.S. Nutritional sales
increased 5% to $288 million in the first quarter of 2008 from $274
million in the same period in 2007 primarily due to increased sales of
ENFAMIL(R). International Nutritional sales increased 25% to $415
million in the first quarter of 2008, including a 10% favorable foreign
exchange impact, due to growth in both infant formulas and children's
nutritionals.
CONVATEC
-- Worldwide ConvaTec sales increased 14%, including a 7% favorable
foreign exchange impact, to $290 million in the first quarter of 2008
from $254 million in the same period in 2007 due to growth in both the
wound therapeutics and ostomy businesses.
PIPELINE DEVELOPMENTS
The company continues to advance a robust pipeline and expects to
submit a U.S. regulatory filing for the diabetes medicine, saxagliptin, in
mid-2008. New scientific data on marketed products and compounds in
development are scheduled to be presented at upcoming meetings of the
American Diabetes Association and the American Society of Clinical
Oncology.
In February, a supplemental New Drug Application for ABILIFY(R) was
approved by the U.S. Food and Drug Administration (FDA) for the acute
treatment of manic and mixed episodes associated with Bipolar I Disorder,
with or without psychotic features in pediatric patients (10 to 17 years
old). In March, the European Commission authorized marketing of ABILIFY(R)
in the treatment of moderate to severe manic episodes in Bipolar I Disorder
and for the prevention of a new manic episode in patients who experienced
predominantly manic episodes and whose manic episodes responded to
ABILIFY(R) treatment.
At the Asian Pacific Association for the Study of the Liver meeting in
March, new data demonstrated a continued low incidence of resistance to
BARACLUDE(R) in nucleoside-naive patients through five years of treatment,
which is important for many chronic hepatitis B patients requiring
long-term treatment. BARACLUDE(R) is indicated for the treatment of chronic
hepatitis B.
In April, ORENCIA(R) was approved by the FDA for treatment of juvenile
rheumatoid arthritis. Additionally, the U.S. label for ORENCIA(R) was
revised with an indication that means ORENCIA(R) is an appropriate option
for patients with moderate-to-severe rheumatoid arthritis, regardless of
prior treatment received.
The European Committee for Medicinal Products for Human Use (CHMP) in
March issued a positive opinion recommending approval of the 300 milligram
loading dose tablet of PLAVIX(R). This positive opinion was ratified by the
European Commission in April.
The first data comparing boosted REYATAZ(R) (REYATAZ plus ritonavir)
and lopinavir/ritonavir was presented at the Congress on Retroviruses and
Opportunistic Infections in February. The CASTLE study showed similar
efficacy between once-daily REYATAZ (atazanavir sulfate)/ritonavir and
twice- daily lopinavir/ritonavir at 48 weeks in previously untreated
HIV-infected adult patients. Data also showed differences in
gastrointestinal and lipid effects between REYATAZ/ritonavir and
lopinavir/ritonavir among the study population.
2008 GUIDANCE
Bristol-Myers Squibb reaffirms its 2008 earnings guidance for fully
diluted earnings per share from continuing operations on a GAAP basis to be
between $1.36 and $1.46. The company also reaffirms its 2008 fully diluted
earnings per share from continuing operations guidance on a non-GAAP basis
to be between $1.60 and $1.70. The non-GAAP guidance excludes specified
items as discussed under "Use of Non-GAAP Financial Information." Details
reconciling adjusted non-GAAP amounts with the amounts reflecting specified
items are provided in supplemental materials available on the company's
website.
The company reaffirms guidance that it expects non-GAAP earnings per
share from continuing operations to grow at a minimum of 15 percent
compounded annual growth rate, from the 2007 base through 2010, excluding
costs associated with the Productivity Transformation Initiative and other
specified items that have not yet been identified and quantified.
The 2008 guidance and the three-year compound annual growth rate
exclude other specified items such as gains or losses from sale of
businesses and product lines; from sale of equity investments and from
discontinuations of operations; restructuring and other exit costs;
accelerated depreciation charges ; asset impairments; charges and
recoveries relating to significant legal proceedings; upfront and milestone
payments for licensing arrangements; payments for in-process research and
development; debt retirement costs; impairments to investments; and
significant tax events.
The financial guidance for 2008 and the three-year compound annual
growth rate exclude the impact of any potential strategic acquisitions and
divestitures and further assume that the company and its product partner,
sanofi-aventis, maintain exclusivity for the PLAVIX(R) patent through at
least 2010.
Use of Non-GAAP Financial Information
This press release contains non-GAAP financial measures, including non-
GAAP earnings and earnings per share information, adjusted to exclude
certain costs, expenses, gains and losses and other specified items. Among
the items in GAAP measures but excluded for purposes of determining
adjusted earnings and other adjusted measures are: charges related to
implementation of the Productivity Transformation Initiative; gains or
losses from sale and leaseback of properties and from discontinuations of
operations; restructuring and other exit costs; accelerated depreciation
charges; asset impairments; charges relating to significant legal
proceedings; upfront and milestone payments for in-licensing of products
that have not achieved regulatory approval that are immediately expensed;
payments for in-process research and development; impairments to
investments; and significant tax events. This information is intended to
enhance an investor's overall understanding of the company's past financial
performance and prospects for the future. For example, non-GAAP earnings
and earnings per share information is an indication of the company's
baseline performance before items that are considered by the company to be
not reflective of the company's ongoing results. In addition, this
information is among the primary indicators the company uses as a basis for
evaluating company performance, allocating resources, setting incentive
compensation targets, and planning and forecasting of future periods. This
information is not intended to be considered in isolation or as a
substitute for net earnings or diluted earnings per share prepared in
accordance with GAAP.
Statement on Cautionary Factors
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
regarding, among other things, statements relating to goals, plans and
projections regarding the company's financial position, results of
operations, market position, product development and business strategy.
These statements may be identified by the fact that they use words such as
"anticipate", "estimates", "should", "expect", "guidance", "project",
"intend", "plan", "believe" and other words and terms of similar meaning in
connection with any discussion of future operating or financial
performance. Such forward-looking statements are based on current
expectations and involve inherent risks and uncertainties, including
factors that could delay, divert or change any of them, and could cause
actual outcomes and results to differ materially from current expectations.
These factors include, among other things, market factors, (including
whether uncertainties in the credit and capital markets or a further
deterioration of these markets will lead to future impairments to the
company's investment portfolio) competitive product development, pricing
controls and pressures (including changes in rules and practices of managed
care groups and institutional and governmental purchasers), economic
conditions such as interest rate and currency exchange rate fluctuations,
judicial decisions and governmental laws and regulations related to
Medicare, Medicaid and healthcare reform, pharmaceutical rebates and
reimbursement, claims and concerns that may arise regarding the safety and
efficacy of in- line products and product candidates, changes to wholesaler
inventory levels, variability in data provided by third parties, changes
in, and interpretation of, governmental regulations and legislation
affecting domestic or foreign operations, including tax obligations,
difficulties and delays in product development, manufacturing or sales,
patent positions and the ultimate outcome of any litigation matter,
including whether Apotex will prevail in its appeal of the District court's
decision in the PLAVIX(R) patent litigation. These factors also include the
company's ability to execute successfully its strategic plans, including
its productivity transformation initiatives, the expiration of patents or
data protection on certain products, and the impact and result of
governmental investigations. There can be no guarantees with respect to
pipeline products that future clinical studies will support the data
described in this release, that the products will receive necessary
regulatory approvals, or that they will prove to be commercially
successful; nor are there guarantees that regulatory approvals will be
sought, or sought within currently expected timeframes, or that contractual
milestones will be achieved. For further details and a discussion of these
and other risks and uncertainties, see the company's periodic reports,
including the annual report on Form 10-K, quarterly reports on Form 10-Q
and current reports on Form 8-K, filed with or furnished to the Securities
and Exchange Commission. The company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future events or otherwise.
Company and Conference Call Information
Bristol-Myers Squibb is a global pharmaceutical and related health care
products company whose mission is to extend and enhance human life.
There will be a conference call on April 24, 2008 at 10:30 a.m. (EDT)
during which company executives will address inquiries from investors and
analysts. Investors and the general public are invited to listen to a live
web cast of the call at http://www.bms.com/ir or by dialing 913-312-0861,
confirmation code 4556649. Materials related to the call will be available
at the same website prior to the call.
ABILIFY(R) is the trademark of Otsuka Pharmaceutical Co., Ltd.
ATRIPLA(TM) is a trademark of both Bristol-Myers Squibb Co. and Gilead
Sciences, Inc.
AVAPRO(R), AVALIDE(R) and PLAVIX(R) are trademarks of sanofi-aventis
Erbitux(R) is a trademark of ImClone Systems Incorporated
BRISTOL-MYERS SQUIBB COMPANY
NET SALES FROM CONTINUING OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Unaudited, dollars in millions)
BY OPERATING SEGMENT: Three Months Ended March 31,
2008 2007 % Change
Pharmaceuticals $4,188 $3,457 21%
Nutritionals 703 606 16%
ConvaTec 290 254 14%
Net Sales $5,181 $4,317 20%
FOR SELECTED PRODUCTS:
The following table sets forth worldwide and U.S. reported net sales
for selected products for the three months ended March 31, 2008 compared to
the three months ended March 31, 2007. In addition, the table includes,
where applicable, the estimated total U.S. prescription change for the
retail and mail-order channels for the comparative periods presented for
certain of the company's U.S. pharmaceutical products based on third-party
data. A significant portion of the company's U.S. pharmaceutical sales is
made to wholesalers. Where changes in reported net sales differ from
prescription growth, this change in net sales may not reflect underlying
prescriber demand.
% Change
in U.S.
Total
Prescrip-
Worldwide Net Sales U.S. Net Sales tions
% % vs.
2008 2007 Change 2008 2007 Change 2007
Three Months Ended
March 31,
Pharmaceuticals
Cardiovascular
Plavix $1,308 $938 39% $1,139 $787 45% 78%
Avapro/Avalide 305 270 13% 174 163 7% (7)%
Pravachol 73 135 (46)% 15 57 (74)% (82)%
Virology
Reyataz 297 263 13% 160 143 12% 12%
Sustiva Franchise
(total revenue) 273 226 21% 175 144 22% 15%
Baraclude 108 45 140% 29 17 71% 59%
Oncology
Erbitux 187 160 17% 185 158 17% N/A
Taxol 94 111 (15)% - 4 (100)% N/A
Sprycel 66 21 ** 20 10 100% 49%
Ixempra 25 - - 25 - - N/A
Affective (Psychiatric)
Disorders
Abilify
(total revenue) 454 366 24% 348 293 19% 14%
Immunoscience
Orencia 87 41 112% 73 40 83% N/A
Nutritionals
Enfamil 290 254 14% 183 171 7% N/A
ConvaTec
Ostomy 143 130 10% 32 34 (6)% N/A
Wound Therapeutics 122 107 14% 34 32 6% N/A
** Change is in excess of 200%.
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Unaudited, amounts in millions except per share data)
Three Months
Ended March 31,
2008 2007 % Change
Net Sales $5,181 $4,317 20%
Cost of products sold 1,657 1,340 24%
Marketing, selling and administrative 1,223 1,133 8%
Advertising and product promotion 330 268 23%
Research and development 795 791 1%
Provision for restructuring, net 11 37 (70)%
Equity in net income of affiliates (164) (126) (30)%
Other expense, net (a) 39 22 77%
3,891 3,465 12%
Earnings from Continuing Operations
Before Minority Interest and Income
Taxes 1,290 852 51%
Provision for income taxes 359 68 **
Minority interest, net of taxes 230 141 63%
Net Earnings from Continuing Operations 701 643 9%
Discontinued Operations:
Earnings, net of taxes 3 47
Loss on Disposal, net of taxes (43) -
(40) 47
Net Earnings $661 $690
Earnings per Common Share
Basic:
Net Earnings from Continuing Operations $.35 $.33 6%
Discontinued Operations
Earnings, net of taxes - .02
Loss on Disposal, net of taxes (.02) -
Net Earnings per Common Share $.33 $.35
Diluted:
Net Earnings from Continuing Operations $.35 $.33 6%
Discontinued Operations
Earnings, net of taxes - .02
Loss on Disposal, net of taxes (.02) -
Net Earnings per Common Share $.33 $.35
Average Common Shares Outstanding:
Basic 1,975 1,962
Diluted 2,008 1,997
(a) Other expense, net
Interest expense $73 $109
Interest income (43) (53)
Foreign exchange transaction
losses 26 8
Other income, net (17) (42)
$39 $22
** Change is in excess of 200%.
APPENDIX 1
BRISTOL-MYERS SQUIBB COMPANY
SPECIFIED ITEMS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Unaudited, dollars in millions)
Three months ended March 31, 2008
Pro
Marketing vision
selling Research for Other
Cost of and and restruct- (income)/
products admini- develop- uring expense,
sold strative ment net net Total
Productivity Transformation
Initiative:
Downsizing and streamlining of
worldwide operations $- $- $- $11 $- $11
Accelerated depreciation and
other shutdown costs 96 - - - - 96
Process standardization
implementation costs - 15 - - - 15
Gain on sale and leaseback of
properties - - - (9) (9)
96 15 - 11 (9) 113
Other:
Product liability - - - - 16 16
Milestone payments - - 20 - - 20
Auction rate securities
impairment - - - - 25 25
$96 $15 $20 $11 $32 174
Income taxes on items above (33)
(Increase)/Decrease to Net
Earnings from Continuing
Operations $141
Three months ended March 31, 2007
Provision
Research for
Cost of and restruct-
products develop- uring
sold ment net Total
Upfront payments $- $80 $- $80
Downsizing and streamlining of
worldwide operations - - 37 37
Accelerated depreciation 16 - - 16
$16 $80 $37 133
Income taxes on items above (40)
Change in estimate for taxes on a
prior year specified item (39)
(Increase)/Decrease to Net Earnings
from Continuing Operations $54
SOURCE Bristol-Myers Squibb Company
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Related links:
http://www.bms.com/
CONTACT:
Communications, Brian Henry, +1-609-252-3337,
Tracy Furey, +1-609-252-3208, Investor Relations: John Elicker,
+1-212-546-3775, Suketu Desai, +1-609-252-5796, all for
Bristol-Myers Squibb Company
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