Cost Cuts Help Merck to Avert Revenue Losses |
| New York Times - Oct 29, 2010 |
The drug maker Merck reported third-quarter profit on Friday that rose more than analysts had estimated, as reduced costs helped overcome revenue losses from drugs facing generic competition.
Earnings, excluding a $950 million legal reserve for a Vioxx lawsuit and other one-time items, were 85 cents a share, beating by 2 cents the average estimate of 15 analysts surveyed by Bloomberg. Net income fell 90 percent, to $342 million, the company said.
Sales increased 84 percent, to $11.1 billion after adding the products from its $49.6 billion acquisition of the Schering-Plough Corporation last November. Merck said that it was on track to cut 15,000 jobs from its combined work force and close plants to save $3.5 billion in annual costs by 2012.
“Focus on cost control is working,” said Marc Goodman, an analyst at UBS Securities, in a note to clients. “We continue to see this as a cost-cutting story ahead of major pipeline events and think management is doing a good job.”
Read Full Article from New York Times
- Posted: 2010-10-29 21:46:03
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