VALLEY FORGE, Pa.--(BUSINESS WIRE)--Dec. 22,
2004--AmerisourceBergen Corporation (NYSE:ABC), a leading
pharmaceutical services company, today reduced its fiscal year 2005
estimate for diluted earnings per share from continuing operations to
$4.00 to $4.10 from $4.20 to $4.30 due to lower than anticipated
pharmaceutical price increases, fewer product deals from manufacturers
and reduced alternate source purchases in the December quarter. The
Company expects diluted earnings per share from continuing operations
in the December quarter to be between $0.60 and $0.65.
The Company continues to expect operating revenue growth in fiscal
year 2005 to be flat, reflecting the loss of two large customers in
fiscal 2004.
"Our current estimates for diluted earnings per share from
continuing operations indicate we will not meet our expectations for
the December quarter primarily due to buy-side shortfalls," said R.
David Yost, AmerisourceBergen's Chief Executive Officer. "Our
confidence in our revised estimate for fiscal year 2005 diluted
earnings per share from continuing operations is due to our continued
expectation for a low double-digit pharmaceutical industry growth
rate, including price appreciation of approximately 5 percent in the
remainder of the fiscal year; lower interest expense from recent
refinancings; the impact of our stock repurchase program; and benefits
from profitability and growth initiatives in the pharmaceutical
distribution business, such as our Optimiz(TM) asset optimization
program.
"Although these are challenging times for AmerisourceBergen and
the industry, the future remains bright, with generic opportunities
ahead, the implementation of the Medicare Modernization Act in 2006,
and the evolution to fee-for-service contracts with manufacturers.
Assuming projected market growth, we expect to return to our long-term
diluted earnings per share growth from continuing operations of 15
percent in the September 2005 quarter."
Discontinued operations for the December quarter and the fiscal
year will reflect the October sale of AmerisourceBergen's Rita Ann
cosmetics distribution business. The Company will record a loss of an
approximately $6 million, net of tax, on the sale in the December
quarter.
Conference Call
The Company will host a conference call to discuss its revised
guidance at 10:00 a.m. Eastern Standard Time on December 22, 2004.
Participating in the conference call will be: R. David Yost, Chief
Executive Officer; Kurt J. Hilzinger, President and Chief Operating
Officer; and Michael D. DiCandilo, Senior Vice President and Chief
Financial Officer.
To access the live conference call via telephone:
Dial in: (612) 332-0107, no access code required.
To access the live webcast:
Go to the Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
A replay of the telephone call and webcast will be available from
12:15 p.m. December 22, 2004 until 11:59 p.m. January 4, 2005. The
Webcast replay will be available for 30 days.
To access the replay via telephone:
Dial in: (800) 475-6701 from within the U.S., access code: 763469
(320) 365-3844 from outside the U.S., access code: 763469
To access the archived webcast:
Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.
About AmerisourceBergen
AmerisourceBergen(R) (NYSE:ABC) is one of the largest
pharmaceutical services companies in the United States. Servicing both
pharmaceutical manufacturers and healthcare providers in the
pharmaceutical supply channel, the Company provides drug distribution
and related services designed to reduce costs and improve patient
outcomes. AmerisourceBergen's service solutions range from pharmacy
automation, bedside medication safety systems, and pharmaceutical
packaging to pharmacy services for skilled nursing and assisted living
facilities, reimbursement and pharmaceutical consulting services, and
physician education. With more than $48 billion in operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and employs
more than 14,000 people. AmerisourceBergen is ranked #22 on the
Fortune 500 list. For more information, go to
www.amerisourcebergen.com.
FORWARD-LOOKING STATEMENTS
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements
are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained in the forward-looking
statements. Forward-looking statements may include statements
addressing AmerisourceBergen's future financial and operating results.
The following factors, among others, could cause actual results to
differ materially from those described in any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies or practices; regulatory changes; changes in U.S. government
policies (including changes in government policies pertaining to drug
reimbursement); changes in market interest rates; and other economic,
business, competitive, regulatory and/or operational factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth in
AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal 2004.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward looking
statements whether as a result of new information, future events or
otherwise.
CONTACT: AmerisourceBergen Corporation, Valley Forge
Michael N. Kilpatric 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation