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Hospira Reports Second-Quarter 2008 Results
Date:8/6/2008

in the Europe, Middle East and Africa (EMEA) and the Asia-Pacific (APAC) segments increased 6.7 percent and 10.4 percent respectively, driven by the impact of foreign exchange.

A schedule detailing net sales by segment and product line for the three- and six-month periods ended June 30, 2008 and 2007 is attached to this press release.

Adjusted* income from operations for the second quarter of 2008 was $152.2 million, up 9.4 percent. The growth was driven by improved adjusted* gross profit performance, partially offset by increases in adjusted* Research and Development (R&D) and adjusted* Selling, General and Administrative (SG&A) expenses. The increase in adjusted* R&D was driven by investments in drug development activities as well as the impact of foreign exchange. Adjusted* SG&A spending grew due to increased support for sales and marketing of new products, primarily in the EMEA and APAC segments, as well as the impact of foreign exchange.

Cash Flow

Cash flow from operations for the first six months of 2008 was $182.6 million, up from $171.6 million for the same period in 2007. Capital expenditures were $86.7 million for the first six months of 2008, compared with $88.5 million for the same period in 2007.

2008 Projections

Hospira has increased the projected range for net sales growth for 2008. Net sales for the full year are now expected to increase 8 to 10 percent, including the impact of foreign currency.

The company has narrowed the projected range for full-year 2008 adjusted* diluted earnings per share to be between $2.50 and $2.55. The reconciliation between the projected adjusted* diluted earnings per share and GAAP diluted earnings per share follows:

Diluted earnings per share -- adjusted* $2.50 - $2.55

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Estimated charges related to planned facilities

optimization initiatives (mid-point of an
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SOURCE Hospira, Inc.
Copyright©2008 PR Newswire.
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