DOW JONES NEWSWIRES
AmerisourceBergen Co.'s (ABC) fiscal second-quarter net income
rose 7% amid a double-digit increase in generic drug sales and a
strong performance from the company's higher-margin specialty
distribution business.
The drug wholesaler also raised its 2009 earnings forecast amid
expectations for 6% to 7% fewer shares outstanding, projecting
earnings of $3.18 to $3.30 a share, up from its prior target of
$3.08 to $3.25 a share. Revenue is still expected to grow 1% to
3%.
Lower hospital spending and drug-store closures have made it
more difficult for AmerisourceBergen to weather the recession. The
company faces more pressure as drug manufacturers consolidate
operations, limiting AmerisourceBergen's leverage in packaging and
distribution negotiations.
For the quarter ended March 31, the pharmaceutical-services
company posted net income of $143.4 million, or 94 cents a share,
up from $133.9 million, or 82 cents a share, a year ago.
Revenue slumped 2.5% to $17.3 billion amid the loss of the
direct-to-warehouse business last July and one less business day in
this year's quarter.
Analysts polled by Thomson Reuters were looking for earnings of
89 cents on revenue of $17.9 billion.
Gross margin climbed to 3.19% from 3.03% on strong generic-drug
sales.
AmerisourceBergen shares closed Wednesday at $34.75. There was
no premarket trading.
-By Katherine E. Wegert, Dow Jones Newswires; 201-938-5294;
katherine.wegert@dowjones.com
