Merck Reports Second-Quarter 2008 Financial Results
Business Wire
Posted: 2008-07-21 16:37:00
Merck & Co., Inc. today announced financial results for the second
quarter of 2008.
Merck reported non-GAAP (generally accepted accounting principles)
earnings per share (EPS) of $0.86 for the second quarter of 2008,
excluding restructuring charges. GAAP EPS for the second quarter were
$0.82. Worldwide sales were $6.1 billion for the quarter, a decrease of
1 percent from the second quarter of 2007. Foreign exchange favorably
affected global sales performance by 5 percent for the quarter. Net
income for the second quarter of 2008 was $1,768.3 million compared with
$1,676.4 million in the second quarter of 2007. For the first six months
of 2008, worldwide sales were $11.9 billion and net income was $5,070.8
million. A reconciliation of EPS as reported in accordance with GAAP to
EPS that excludes certain items is provided in the table that follows.
|
|
|
Quarter Ended June 30
|
|
Six Months Ended June 30
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS
|
|
$
|
0.82
|
|
$
|
0.77
|
|
$
|
2.34
|
|
|
$
|
1.55
|
|
EPS impact of items*
|
|
|
0.04
|
|
|
0.05
|
|
|
(0.59
|
)
|
|
|
0.11
|
|
Non-GAAP EPS that excludes certain items listed below1
|
|
$
|
0.86
|
|
$
|
0.82
|
|
$
|
1.75
|
|
|
$
|
1.66
|
|
* Amount calculated as follows (in millions except per share
amounts)
|
|
Second-
Quarter
2008
|
|
Second-
Quarter
2007
|
|
Six Months
Ended
June 30, 2008
|
|
Six Months
Ended
June 30, 2007
|
|
Gain on distribution from AstraZeneca
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(2,223
|
)
|
|
$
|
-
|
|
|
Costs related to global restructuring program
|
|
|
118
|
|
|
|
172
|
|
|
|
203
|
|
|
|
358
|
|
|
Net (increase) decrease before income taxes
|
|
|
118
|
|
|
|
172
|
|
|
|
(2,020
|
)
|
|
|
358
|
|
|
Income tax expense (benefit) on above items
|
|
|
(41
|
)
|
|
|
(62
|
)
|
|
|
737
|
|
|
|
(124
|
)
|
|
(Increase) decrease in net income
|
|
$
|
77
|
|
|
$
|
110
|
|
|
$
|
(1,283
|
)
|
|
$
|
234
|
|
|
EPS impact of items
|
|
$
|
0.04
|
|
|
$
|
0.05
|
|
|
$
|
(0.59
|
)
|
|
$
|
0.11
|
|
"For the second quarter, Merck made good progress launching innovative
new pharmaceutical and vaccine products around the world and driving
efficiencies in many parts of the business," said Richard T. Clark,
chairman, president and chief executive officer. "Although some results
didn't meet our expectations, we are taking action to address our
challenges, and remain committed to regaining leadership in the
pharmaceutical industry.
"Earlier today, data for the SEAS study was presented by the primary
investigator," he said. "We are moving quickly to fully assess the
potential implications of the data for our cholesterol joint venture."
Materials and production costs were $1.4 billion for the qua
