Alcon Inc.'s (ACL) fourth-quarter earnings per share rose 12.8%
as total sales climbed 2% with organic sales up 6.4%.
"The long term strategic drivers of our business remain in place
supported by the favorable demographics of the eye care industry
and our demonstrated ability to gain market share," said Chief
Executive Cary Rayment, who plans to retire from that post March 31
but remain as chairman. "In response to the environment we expect
to face in 2009, we will prioritize spending on research and
development and market development activities that drive future
growth, while implementing actions to reduce our overall cost
structure."
Though it doesn't make lenses, Alcon Inc. (ACL) is a heavyweight
in the ophthalmology market, with a big presence in eye drugs, lens
solutions and surgical products. Those products tend to sell well
despite tough economic times.
The eye-care products company reported net income of $423.6
million, or $1.41 a share, up from $376.5 million, or $1.25 a
share, a year earlier.
Revenue rose 1.9% to $1.50 billion from $1.47 billion.
Analysts' estimates were for per-share earnings of $1.32 on
revenue of $1.48 billion, according to a poll by Thomson
Reuters.
Gross profit margin rose to 79.2%, up 4.5 percentage points,
much of which was due to a temporary impact on cost of goods sold
of the sharp devaluation of most foreign currencies against the
U.S. dollar..
Sales of surgical products grew 3.2% while revenue from
pharmaceutical products remained flat.
International sales climbed 1.2% as U.S. sales jumped 2.8%.
In July, Swiss drug maker Novartis AG (NVS) paid $10.4 billion
for a 25% stake in Alcon, and it has the option to acquire Nestle
SA's (NSRGY) remaining 52% stake for up to $28 billion. Nestle has
the right to require that Novartis buy this stake, though there is
a walkaway clause in case of unexpected events, such as a major
product recall. Nestle purchased Alcon in the late 1970s for $275
million.
Looking ahead, Alcon expects fiscal 2009 earnings of $6 to $6.20
a share and non-GAAP earnings at $6.05 to $6.25 a share. The
company expects organic sales to climb in the mid-single
digits.
Analysts' estimates were 2009 earnings of $6.28 a share on
revenue of $6.48 billion.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com