Company Gives Update on Pharmaceutical Services Industry and
Integration Progress
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Dec. 5, 2002--
Speaking at today's meeting, the Company's Chief Executive Officer
R. David Yost said, "We expect to grow our company by remaining
focused on and enhancing our position in the pharmaceutical supply
channel. By harnessing the full array of capabilities and expertise
within AmerisourceBergen, we plan to bring new and innovative
value-added services to manufacturers and healthcare providers along
the channel. We remain focused on our integration efforts, and we are
confident that we will continue to meet our long term goals."
The Company expressed confidence in its pharmaceutical
distribution business and believes that the industry's fundamental
growth drivers remain strong. "We are committed to pharmaceutical
distribution, and we plan to increase our capabilities throughout the
channel in areas such as specialty pharmaceuticals, patient safety,
and pharmacy automation," continued Yost.
"We also remain confident in our ability to achieve our targeted
annual cost saving synergies of $150 million by the end of fiscal year
2004, followed by additional synergy capture through the completion of
our distribution network," remarked Yost.
The Company previously announced that it would consolidate a total
of 27 of its original 51 facilities, build six new distribution
centers, and expand seven existing facilities. Seven consolidations
were completed in fiscal year 2002, and six larger distribution
centers will be consolidated in fiscal year 2003.
The completed distribution network will consist of 29 facilities
located throughout the United States, and one facility in Puerto Rico
for a total of 30.
"We are pleased to announce that we have broken ground on two of
our new, state of the art distribution facilities, one in Columbus,
Ohio, and one in Sacramento, California," said Kurt J. Hilzinger,
AmerisourceBergen President and Chief Operating Officer. "These two
new distribution centers will be excellent examples of what we
envision for our future distribution network--highly automated, bar
code enabled, strategically located facilities, with a footprint of
300,000 square feet each and unparalleled operating efficiency." The
Company is actively pursuing the acquisition of land for the remaining
four new distribution centers. The new facilities become operational
approximately 24 months after land is acquired.
"We also have made significant progress with the first of two
planned facility expansions that will be completed in fiscal year
2003. The expansion of our Boston, Massachusetts distribution center
is expected to be completed by the end of the current calendar year,"
continued Hilzinger. "These facility improvements will enhance our
presence in each market and will enable us to bring even greater
efficiencies and added value to our customers."
Looking ahead, the Company continues to see significant growth
opportunities across its businesses. "Through our focus on the
pharmaceutical channel, we continue to expect to drive strong
performance in fiscal year 2003," said Michael D. DiCandilo,
AmerisourceBergen Senior Vice President and Chief Financial Officer.
"In our December quarter, we see operating revenue growth of
approximately 13 percent and earnings per share growth of 20 percent,
excluding special charges. For the fiscal year 2003, we continue to
expect operating revenue growth in line with projected market growth,
a return on committed capital of more than 20 percent, and earnings
per share growth, excluding special charges, of 20 percent.
"Our long-term goals remain to grow revenue with the market,
consistently achieve a return on committed capital of greater than 20
percent, and grow earnings per share at 20 percent or more, excluding
special charges."
A rebroadcast of today's investor meeting is available beginning
at 3:30 pm Eastern Time today on the Investor Relations page of the
Company's website, www.amerisourcebergen.com. The replay of the
webcast will be available for 30 days.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical
services company in the United States dedicated solely to the
pharmaceutical supply chain. It is the leading distributor of
pharmaceutical products and services to the hospital systems and acute
care market, alternate care facilities, independent community
pharmacies, and regional chain pharmacies.
The Company is also a leader in the institutional pharmacy
marketplace. With more than $40 billion in annualized operating
revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and
employs more than 13,000 people serving over 25,000 customers.
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 future financial and operating results
of AmerisourceBergen and the benefits and aspects of the 2001 merger
between AmeriSource Health Corporation and Bergen Brunswig
Corporation.
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: the risk that the businesses of AmeriSource and Bergen
Brunswig will not be integrated successfully; failure to obtain and
retain expected synergies; and other economic, business, competitive
and/or regulatory 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 2001,
its Quarterly Reports on Form 10-Q for fiscal 2002, and the joint
proxy statement-prospectus for the merger filed on August 1, 2001.
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.
--30--RM/ph*
CONTACT: |
AmerisourceBergen, Valley Forge |
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Michael N. Kilpatric, 610/727-7118 |
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mkilpatric@amerisource.com |
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