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West Announces Third Quarter 2009 Results
Date:11/3/2009

d financial schedules and Safe Harbor Statement.

(1) "Adjusted operating profit" and its components and "adjusted diluted earnings per share (EPS)" are defined as reported operating profit and reported diluted EPS excluding the impact of restructuring costs, discrete tax items and certain other significant items, as described below. Management uses adjusted operating profit and adjusted diluted EPS to measure the business and compare operating results to prior periods. Adjusted operating profit and adjusted EPS also are used, together with other measures, to set performance goals for determining payouts under annual and long-term incentive programs. We believe that investors' understanding of our performance is enhanced by disclosing these measures.

The items excluded from adjusted operating profit and adjusted diluted EPS are:

Brazil Tax Amnesty Benefit: During September 2009, we enrolled in a Brazil amnesty program which entitled us to a reduction in certain tax-related penalties, interest and other costs in exchange for our irrevocable declaration of all specified obligations. As these tax-related obligations were previously accrued, the impact was a pre-tax gain of $3.9 million, or $1.7 million after-tax.

Restructuring Charges: During both 2009 and 2008, we incurred restructuring and other related charges as part of our December 2007 plan to align the plant capacity and workforce of our Tech Group with its revised business outlook and as part of a longer-term strategy of focusing the business on proprietary products. The majority of these charges related to severance and other employee benefits and a smaller portion resulted from asset write-offs and other related costs. The restructuring program was substantially completed during the second quarter of 2009.

2008 Contract Settlement Costs (Income): Under a February 2008 agreement reached with our former customer, Ne
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SOURCE West Pharmaceutical Services, Inc.
Copyright©2009 PR Newswire.
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