McKesson posts double-digit gains in Q4, FY2012

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McKesson has reported double-digit gains in the 2012 fourth quarter, compared with the previous year's fourth quarter, as well as the 2012 fiscal year, compared with the previous year.

The recorded revenues for the fourth quarter, which ended March 31, for the San Francisco-based company were $31.7 billion, up 10 percent compared to $28.9 billion a year ago. For the fiscal year, McKesson had revenues of $122.7 billion compared with $112.1 billion a year ago.  

“I am pleased with our fourth-quarter results led by solid execution in our distribution solutions businesses,” said John H. Hammergren, McKesson’s chairman and CEO. “For the full year, we had strong growth in both earnings and cash flow driven by our portfolio of solutions across healthcare.”

The net income for the 2012 fourth quarter was $521 million, compared with $422 million in the 2011 fourth quarter—an increase of 23 percent. The 2012 fiscal year saw a similarly strong jump of 17 percent, with an income of $1.4 billion, over the previous fiscal year.

During the fourth quarter, McKesson completed the acquisition of the independent banner and franchise businesses of Katz Group Canada for $919 million. Also during the fourth quarter, McKesson entered into an accelerated share repurchase agreement to buy $1.2 billion of its common stock.

The revenues from company’s distribution solutions unit revenues were up 10 percent for the fourth quarter and 10 percent for the full year. U.S. pharmaceutical distribution revenues were up 10 percent for the fourth quarter. For the full year, U.S. pharmaceutical distribution revenues also increased 10 percent, primarily reflecting market growth and the US Oncology acquisition, according to McKesson.

Medical-surgical distribution and services revenues were up 8 percent for both the fourth quarter and for the full fiscal year.

In the technology solutions unit, the revenues were down 2 percent for the fourth quarter and up 4 percent for the full year. GAAP operating profit was $87 million for the fourth quarter and $264 for the full year.