The company expects gross margin as a percent of sales to increase substantially, driven by the strengthening dollar. This impact could be particularly pronounced in the first and second quarters of 2009.
Marketing, selling, and administrative expenses are projected to show flat to low-single digit growth while research and development expenses are projected to grow in the low-single digits. Operating expenses, as defined as the sum of marketing, selling and administrative expenses and research and development expenses, are expected to grow more slowly than sales, registering flat to low-single digit growth.
Other income is expected to contribute less than $75 million, and the tax rate is expected to be approximately 22 percent. Capital expenditures are expected to remain level at approximately $1.1 billion and the company expects continued strong operating cash flow.
In addition, the company reaffirmed its commitment to generate double-digit compound annual earnings per share growth between 2007 and 2011.
Webcast of Investment Community Meeting
A live webcast of the Lilly Investment Community meeting, along with presentation slides, is available through a link on Lilly's web site at www.lilly.com. The meeting will start today at 8:30 a.m. Eastern Time and last until approximately 12:30 p.m. The webcast will be available for replay through January 9, 2009.
Lilly, a leading innovation-driven corporation, is developing a growing
portfolio of first-in-class and best-in-class pharmaceutical products by
applying the latest research from its own worldwide laboratories and from
|SOURCE Eli Lilly and Company|
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