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

savings in the range of $4.0 million annually.

During the third quarter of 2009, the Company recognized $3.9 million in pre-tax ($1.7 million after-tax) benefits as a result of relief from penalties, administrative charges and interest associated with certain tax deficiencies in Brazil that were recorded in 2007. The relief is pursuant to an amnesty program initiated by the Brazilian government. In addition, the Company recognized a $0.4 million reduction to tax expense in the quarter from the resolution of prior-year tax contingencies. During the third quarter of 2008, the Company reduced certain prior-year tax contingency reserves, recognizing income of $2.2 million in that quarter.

2008 third quarter results included $1.8 million of pre-tax charges for costs that were reimbursed under a contract settlement agreement with Nektar Therapeutics for converting the former Exubera® device production facility. The settlement had no impact on results in the current quarter.

Financial Guidance

The Company revised its 2009 guidance and previewed revenue expectations for 2010. The changes are intended to reflect management's current expectations and include revisions to revenue, gross profit and Adjusted Diluted EPS(1) estimates. Revised full-year 2009 financial guidance, at assumed exchange rates(3), is summarized as follows:

                                                              2009 Guidance
                                                              -------------
    Consolidated Sales(3)                            $1.03 to $1.05 billion
    Pharmaceutical Systems Revenue(3)                  $790 to $800 million
    Pharmaceutical Systems Gross Profit as a Percent
     of Sales                                                         33.4%
    Tech Group Revenue (includes $12 million of
     inter-company sales)(3)
    Tech Group Gross Profit as a Percent of Sales      $250 to $255 million
        
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SOURCE West Pharmaceutical Services, Inc.
Copyright©2009 PR Newswire.
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