Pfizer (PFE) posted third-quarter 2007 revenues of $12.0 billion, a 2% decline from the same period last year. The Company’s reported net income was $761 million in the third quarter of 2007, a decrease of 77% from the same period last year, primarily reflecting pre-tax charges of $2.8 billion related to the decision to exit Exubera, its inhaled insulin product to treat diabetes.
Frank D’Amelio, Chief Financial Officer, commented, “The Exubera pre-tax charges of $2.8 billion related primarily to the write-off of assets associated with this product, as well as the accrual of other exit costs. More specifically, these charges are comprised of approximately $1.1 billion of intangible assets, $661 million of inventory, $454 million of fixed assets and $584 million of other exit costs."
Pfizre raised the lower end of its 2007 guidance ranges for revenues and adjusted diluted EPS. In addition, as a result of progress in our cost-reduction initiatives, the firm now expects adjusted SI&A expenses to decrease about $100 million more than previous guidance. Pfizer has also changed guidance on adjusted cost of sales as a percent of revenues from 15.0% to 15.5%, largely due to geographic and product mix. Given the charges the company recorded related to Exubera, it decreased its guidance on reported diluted EPS
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Douglas A. McIntye
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