| Eli Lilly Profit Jumps
January 26, 2005
Eli Lilly
(LLY :NYSE - news - research) Wednesday posted
solidly higher fourth-quarter net income, edging
past analysts' EPS estimates thanks to its latest
generation of drugs.
The Indianapolis-based drugmaker had a net
loss of $2.4 million, equivalent to zero cents
a share, primarily due to a $465.0 million tax
expense on the expected repatriation to the
U.S. of $8.0 billion of eligible overseas earnings
in 2005 under the American Jobs Creation Act
of 2004, as well as the charges for the previously
announced restructuring initiatives. That compares
with a profit of $747.2 million, or 69 cents
a share, in the year-ago period.
Lilly is the latest drugmaker to take advantage
of a one-year tax break for overseas profits.
Under a law signed by President George W. Bush
in October, the tax rate will be 5.25% instead
of the customary corporate tax rate of 35%.
Schering-Plough (SGP :NYSE - news - research)
and Johnson & Johnson (JNJ :NYSE - news
- research) also outlined their tax plans in
fourth-quarter results.
Pfizer (PFE :NYSE - news - research) said it
is looking into the option.
Excluding items, net income rose 13% to $814.3
million, or 75 cents a share, vs. $723.3 million,
or 67 cents a share, a year ago. Economists
were expecting 74 cents a share, according to
Thomson First Call.
Operating income decreased 48% to $450.9 million,
due largely to $494.1 million in asset impairments,
restructuring and other special charges.
Revenue increased 5% to $3.64 billion. The
company said sales of what it called "new
products" -- such as Alimta, Cialis and
Cymbalta -- contributed $498.7 million to fourth-quarter
sales and accounted for 14% of total sales,
twice the rate of a year ago.
For the first quarter of 2005, the company
expects EPS of 65 cents to 67 cents a share.
Excluding items, EPS is seen at 71 to 73 cents.
The consensus estimate is 73 cents a share.
Lilly shares closed at $54.85 Tuesday.
source:-http://www.thestreet.com
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