Hospira Reports Third-Quarter 20...(slightly up. During the third quarter...),Health

During the third quarter, Hospira recognized an income tax benefit on the expiration of statutes of limitation on certain unrecognized tax benefits. The tax benefit was partially offset by the tax effect of the U.S. launch of oxaliplatin. Based on these factors, the company is adjusting the guidance for its 2009 effective tax rate to 20 to 21 percent from the prior guidance of 21 to 22 percent.

As a result, the company now expects full-year 2009 adjusted* diluted earnings per share to be between $2.85 and $2.90 per share. The reconciliation between the projected 2009 adjusted* diluted earnings per share and GAAP diluted earnings per share follows:

    Diluted earnings per share -- adjusted*                     $2.85 - $2.90
                                                                -------------
    Estimated charges related to Project Fuel
    initiatives (mid-point of an estimated range of
    $0.34 to $0.38 per diluted share for
    non-impairment charges, plus incurred
    year-to-date impairment and other asset
    charges of $0.37 per diluted share)                                ($0.73)

    Estimated charges related to facilities optimization
    initiatives (mid-point of an estimated range of
    $0.10 to $0.12 per diluted share)                                  ($0.11)

    Estimated $53 million for the amortization of
    intangibles related to the Mayne Pharma acquisition                ($0.23)

    Impairment of marketable equity securities                         ($0.10)

    Tax benefit from the settlement of a U.S. income tax audit          $0.57
                                                                -------------

    Diluted earnings per share -- GAAP                          $2.25 - $2.30
                                                                =============

The company now projects that cash flow from operations in 2009 will be in the $700 million to $750 million ran
'/>"/>