Full Press Release Details
Alcon s Fourth Quarter Sales Rise 16.1 Percent
HUNENBERG, Switzerland February 7, 2007 Alcon, Inc. (NYSE:ACL) reported global sales of $1,224.9 million for the fourth quarter of 2006, an increase of 16.1 percent over global sales for the fourth quarter of 2005, or 13.5 percent excluding the impact of foreign exchange fluctuations. Net earnings for the fourth quarter of 2006 were $354.7 million, or $1.16 per share on a diluted basis, compared to $60.7 million, or $0.19 per share for the fourth quarter of 2005.
Net earnings for the fourth quarter of 2005 included $207.7 million in after-tax charges, or $0.66 per share on a diluted basis, related to an adverse lower court judgment in a patent lawsuit and to damages sustained at the company s United Kingdom facility due to an explosion at an adjacent oil storage depot. Net earnings for the fourth quarter of 2005 did not include expenses related to Statement of Financial Accounting Standards ( SFAS ) No. 123(R), which the company adopted in 2006. If SFAS 123(R) had been applied in the fourth quarter of 2005, the impact would have been an after-tax charge of $10.5 million, or $0.03 per share on a diluted basis. Adjusting for these items, net earnings for the fourth quarter of 2005 would have been $257.9 million, or $0.83 per share on a diluted basis. On a comparable basis, diluted earnings per share for the fourth quarter of 2006
would have risen 39.8 percent compared to adjusted diluted earnings per share for the fourth quarter of 2005.
For the full year 2006, Alcon reported global sales of $4,896.6 million, an increase of 12.1 percent over 2005 global sales of $4,368.5 million, or 11.7 percent excluding the impact of foreign exchange fluctuations. Net earnings for 2006 were $1,348.1 million, or $4.37 per share on a diluted basis, compared to $931.0 million, or $2.98 per share for the full year 2005, an increase of 44.8%.
For the full year 2005, net earnings did not include expenses related to SFAS 123(R), which had it been applied in 2005, would have resulted in an after-tax charge of $60.4 million, or $0.19 per share on a diluted basis. Net earnings for the full year 2005 did include $207.7 million in after-tax charges from the patent lawsuit and the damage to the UK facility described above, or $0.67 per share on a diluted basis. In 2006, the company settled the above-referenced patent lawsuit and recognized an after-tax benefit for the reduction of the 2005 provision for this lawsuit equal to $97.5 million, or $0.32 per diluted share. The company also recorded an impairment charge in 2006 related to certain assets of its refractive laser business that resulted in an after-tax charge of $92.0 million, or $0.30 per diluted share. Adjusting for these items, comparable net earnings for the full year 2006
would have increased 24.5 percent to $1,342.6 million, or $4.35 per share on a diluted basis, versus $1,078.3 million, or $3.46 per share on a diluted basis for the full year 2005.
A reconciliation of reported and adjusted net earnings and earnings per share for the fourth quarter and full year is included in the financial tables below.
I am extremely pleased at how well our entire organization executed our strategic and operating plans in 2006. That we once again grew faster than the overall eye care market confirms the strategic value of our focus on eye care on a global scale. We continued to gain market share broadly across our product lines and geographies and also to build demand for advanced eye care products in emerging markets like China, India and Russia, said Cary Rayment, Alcon s chairman, president and chief executive officer.
Fourth Quarter Sales Highlights
Highlights of sales for the fourth quarter of 2006 are provided below. Unless otherwise noted, all comparisons are versus the fourth quarter of 2005.
Fourth Quarter Earnings Details
Highlights of earnings for the fourth quarter of 2006 are provided below. Unless otherwise noted, all comparisons are versus the fourth quarter of 2005. In the fourth quarter of 2005, the company incurred charges related to damage sustained to its facility in the United Kingdom and to an adverse judgment in a patent lawsuit filed by one of its competitors. The company adopted SFAS 123(R) in 2006 which caused certain share-based compensation expenses to be incurred in 2006 that were not recorded in 2005. These adjustments are discussed above and also reconciled to reported results in the financial tables below. The discussion of fourth quarter earnings below has adjusted 2005 results for these items in order to make them comparable to 2006, unless otherwise noted.
New Product and R&D Pipeline Update
Summarized below are updates on selected new products and significant research and development activities.
Alcon s current financial guidance for the full year 2007 and the factors impacting this guidance are provided below.
Alcon, Inc. is the world s leading eye care company, with sales of approximately $4.9 billion in 2006. Alcon, which has been dedicated to the ophthalmic industry for 60 years, researches, develops, manufactures and markets pharmaceuticals, surgical equipment and devices, contact lens care solutions and other vision care products that treat diseases, disorders and other conditions of the eye. Alcon s majority shareholder is Nestl , S.A., the world s largest food company. All trademarks noted in this release are the property of Alcon, Inc., with the exception of Ciprodex , which is a registered trademark of Bayer AG and licensed to Alcon, Inc. by Bayer Healthcare AG. Moxifloxacin is licensed to Alcon, Inc. by Bayer Healthcare AG.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(USD in millions, except share and per share data)
| Three months ended | Twelve months ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2006 | 2005 | 2006 | 2005 | ||||||||||
| Sales | $ | 1,224.9 | $ | 1,054.9 | $ | 4,896.6 | $ | 4,368.5 | |||||
| Cost of goods sold | 300.2 | 255.7 | 1,215.1 | 1,078.4 | |||||||||
| Gross profit | 924.7 | 799.2 | 3,681.5 | 3,290.1 | |||||||||
| Selling, general and administrative | 385.9 | 585.3 | 1,398.5 | 1,594.7 | |||||||||
| Research and development | 134.5 | 118.9 | 512.1 | 421.8 | |||||||||
| Amortization of intangibles | 11.4 | 21.6 | 198.8 | 85.7 | |||||||||
| Operating income | 392.9 | 73.4 | 1,572.1 | 1,187.9 | |||||||||
| Other income (expense): | |||||||||||||
| Gain (loss) from foreign currency, net | 2.2 | (1.6 | ) | (7.9 | ) | 0.7 | |||||||
| Interest income | 18.2 | 15.3 | 74.1 | 48.7 | |||||||||
| Interest expense | (10.0 | ) | (10.6 | ) | (42.6 | ) | (38.8 | ) | |||||
| Other, net | 8.2 | 0.5 | 21.2 | 4.4 | |||||||||
| Earnings before income taxes | 411.5 | 77.0 | 1,616.9 | 1,202.9 | |||||||||
| Income taxes | 56.8 | 16.3 | 268.8 | 271.9 | |||||||||
| Net earnings | $ | 354.7 | $ | 60.7 | $ | 1,348.1 | $ | 931.0 | |||||
| Basic earnings per common share | $ | 1.17 | $ | 0.20 | $ | 4.43 | $ | 3.04 | |||||
| Diluted earnings per common share | $ | 1.16 | $ | 0.19 | $ | 4.37 | $ | 2.98 | |||||
| Basic weighted average common shares | 302,000,977 | 306,138,519 | 304,279,489 | 306,036,089 | |||||||||
| Diluted weighted average common shares | 305,934,140 | 312,505,431 | 308,671,707 | 311,903,177 |
ALCON, INC. AND SUBSIDIARIES
| Three months ended | %Change in | ||||||||||||
| December 31, | Foreign | Constant | |||||||||||
| 2006 | 2005 | %Change | Currency | Currency | |||||||||
| GEOGRAPHIC SALES | |||||||||||||
| United States: | |||||||||||||
| Pharmaceutical | $ | 255.3 | $ | 223.2 | 14.4 | % | - | % | 14.4 | % | |||
| Surgical | 243.6 | 233.1 | 4.5 | - | 4.5 | ||||||||
| Consumer eye care | 79.3 | 62.5 | 26.9 | - | 26.9 | ||||||||
| Total United States Sales | 578.2 | 518.8 | 11.4 | - | 11.4 | ||||||||
| International: | |||||||||||||
| Pharmaceutical | 220.6 | 172.1 | 28.2 | 5.7 | 22.5 | ||||||||
| Surgical | 338.9 | 290.4 | 16.7 | 5.0 | 11.7 | ||||||||
| Consumer eye care | 87.2 | 73.6 | 18.5 | 4.4 | 14.1 | ||||||||
| Total International Sales | 646.7 | 536.1 | 20.6 | 5.1 | 15.5 | ||||||||
| Total Global Sales | $ | 1,224.9 | $ | 1,054.9 | 16.1 | % | 2.6 | % | 13.5 | % | |||
| PRODUCT SALES | |||||||||||||
| Infection/inflammation | $ | 183.3 | $ | 150.0 | 22.2 | % | |||||||
| Glaucoma | 184.6 | 157.6 | 17.1 | ||||||||||
| Allergy | 69.7 | 62.1 | 12.2 | ||||||||||
| Otic | 38.6 | 33.9 | 13.9 | ||||||||||
| Other pharmaceuticals/rebates | (0.3 | ) | (8.3 | ) | N/M | ||||||||
| Total Pharmaceutical | 475.9 | 395.3 | 20.4 | 2.5 | % | 17.9 | % | ||||||
| Intraocular lenses | 208.6 | 185.7 | 12.3 | ||||||||||
| Cataract/vitreoretinal | 361.7 | 324.8 | 11.4 | ||||||||||
| Refractive | 12.2 | 13.0 | (6.2 | ) | |||||||||
| Total Surgical | 582.5 | 523.5 | 11.3 | 2.8 | 8.5 | ||||||||
| Contact lens disinfectants | 92.2 | 66.2 | 39.3 | ||||||||||
| Artificial tears | 48.7 | 41.4 | 17.6 | ||||||||||
| Other | 25.6 | 28.5 | (10.2 | ) | |||||||||
| Total Consumer Eye Care | 166.5 | 136.1 | 22.3 | 2.3 | 20.0 | ||||||||
| Total Global Sales | $ | 1,224.9 | $ | 1,054.9 | 16.1 | % | 2.6 | % | 13.5 | % |
N/M - Not Meaningful
Note: Percent Change in Constant Currency calculates sales growth without the impact of foreign exchange fluctuations. Management believes constant currency sales growth is an important measure of the company s operations because it provides investors with a clearer picture of the core rate of sales growth due to changes in unit volumes and local currency prices.
ALCON, INC. AND SUBSIDIARIES
| Twelve months ended | %Change in | ||||||||||||
| December 31, | Foreign | Constant | |||||||||||
| 2006 | 2005 | %Change | Currency | Currency | |||||||||
| GEOGRAPHIC SALES | |||||||||||||
| United States: | |||||||||||||
| Pharmaceutical | $ | 1,170.6 | $ | 1,047.7 | 11.7 | % | - | % | 11.7 | % | |||
| Surgical | 950.4 | 870.1 | 9.2 | - | 9.2 | ||||||||
| Consumer eye care | 342.7 | 277.6 | 23.5 | - | 23.5 | ||||||||
| Total United States Sales | 2,463.7 | 2,195.4 | 12.2 | - | 12.2 | ||||||||
| International: | |||||||||||||
| Pharmaceutical | 836.6 | 720.0 | 16.2 | 1.4 | 14.8 | ||||||||
| Surgical | 1,253.4 | 1,146.8 | 9.3 | 0.2 | 9.1 | ||||||||
| Consumer eye care | 342.9 | 306.3 | 11.9 | 1.1 | 10.8 | ||||||||
| Total International Sales | 2,432.9 | 2,173.1 | 12.0 | 0.7 | 11.3 | ||||||||
| Total Global Sales | $ | 4,896.6 | $ | 4,368.5 | 12.1 | % | 0.4 | % | 11.7 | % | |||
| PRODUCT SALES | |||||||||||||
| Infection/inflammation | $ | 734.2 | $ | 641.0 | 14.5 | % | |||||||
| Glaucoma | 694.0 | 621.4 | 11.7 | ||||||||||
| Allergy | 386.6 | 357.5 | 8.1 | ||||||||||
| Otic | 233.4 | 211.9 | 10.1 | ||||||||||
| Other pharmaceuticals/rebates | (41.0 | ) | (64.1 | ) | N/M | ||||||||
| Total Pharmaceutical | 2,007.2 | 1,767.7 | 13.5 | 0.5 | % | 13.0 | % | ||||||
| Intraocular lenses | 794.4 | 689.4 | 15.2 | ||||||||||
| Cataract/vitreoretinal | 1,357.7 | 1,271.3 | 6.8 | ||||||||||
| Refractive | 51.7 | 56.2 | (8.0 | ) | |||||||||
| Total Surgical | 2,203.8 | 2,016.9 | 9.3 | 0.1 | 9.2 | ||||||||
| Contact lens disinfectants | 370.6 | 292.6 | 26.7 | ||||||||||
| Artificial tears | 200.4 | 170.8 | 17.3 | ||||||||||
| Other | 114.6 | 120.5 | (4.9 | ) | |||||||||
| Total Consumer Eye Care | 685.6 | 583.9 | 17.4 | 0.6 | 16.8 | ||||||||
| Total Global Sales | $ | 4,896.6 | $ | 4,368.5 | 12.1 | % | 0.4 | % | 11.7 | % |
N/M - Not Meaningful
Note: Percent Change in Constant Currency calculates sales growth without the impact of foreign exchange fluctuations. Management believes constant currency sales growth is an important measure of the company s operations because it provides investors with a clearer picture of the core rate of sales growth due to changes in unit volumes and local currency prices.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
| Dec. 31, | Dec. 31, | ||||||
| 2006 | 2005 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,489.2 | $ | 1,457.2 | |||
| Short term investments | 321.0 | 377.7 | |||||
| Trade receivables, net | 912.8 | 725.4 | |||||
| Inventories | 473.8 | 427.2 | |||||
| Deferred income tax assets | 122.5 | 131.5 | |||||
| Other current assets | 142.8 | 149.0 | |||||
| Total current assets | 3,462.1 | 3,268.0 | |||||
| Long term investments | 91.1 | 154.8 | |||||
| Property, plant and equipment, net | 920.7 | 829.6 | |||||
| Intangible assets, net | 95.2 | 293.7 | |||||
| Goodwill | 553.2 | 550.0 | |||||
| Long term deferred income tax assets | 235.7 | 77.5 | |||||
| Other assets | 69.3 | 54.6 | |||||
| Total assets | $ | 5,427.3 | $ | 5,228.2 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 168.9 | $ | 156.0 | |||
| Short term borrowings | 926.5 | 1,021.5 | |||||
| Current maturities of long term debt | 5.8 | 5.9 | |||||
| Other current liabilities | 899.9 | 1,095.1 | |||||
| Total current liabilities | 2,001.1 | 2,278.5 | |||||
| Long term debt, net of current maturities | 49.0 | 56.0 | |||||
| Long term deferred income tax liabilities | 10.1 | 15.8 | |||||
| Other long term liabilities | 453.5 | 321.8 | |||||
| Contingencies | |||||||
| Shareholders equity: | |||||||
| Common shares | 43.9 | 43.4 | |||||
| Additional paid-in capital | 1,064.5 | 806.3 | |||||
| Accumulated other comprehensive income | 127.3 | 90.9 | |||||
| Retained earnings | 3,201.9 | 2,282.3 | |||||
| Treasury shares, at cost | (1,524.0 | ) | (666.8 | ) | |||
| Total shareholders' equity | 2,913.6 | 2,556.1 | |||||
| Total liabilities and shareholders' equity | $ | 5,427.3 | $ | 5,228.2 |
Note: Certain reclassifications have been made to prior year amounts to conform with current year presentation.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Year ended December 31, | |||||||
| 2006 | 2005 | ||||||
| Cash provided by operating activities: | |||||||
| Net cash from operating activities | $ | 1,405.9 | $ | 1,235.0 | |||
| Cash provided by (used in) investing activities: | |||||||
| Purchases of property, plant and equipment | (222.3 | ) | (162.2 | ) | |||
| Purchases of intangible assets | -- | (43.2 | ) | ||||
| Net sales (purchases) of available-for-sale investments | 54.7 | (180.6 | ) | ||||
| Other | 1.5 | 3.7 | |||||
| Net cash from investing activities | (166.1 | ) | (382.3 | ) | |||
| Cash provided by (used in) financing activities: | |||||||
| Net proceeds from (repayment of) short term debt | (108.3 | ) | 123.9 | ||||
| Repayment of long term debt | (6.3 | ) | (16.1 | ) | |||
| Dividends on common shares | (416.8 | ) | (302.0 | ) | |||
| Acquisition of treasury shares | (899.2 | ) | (391.9 | ) | |||
| Tax benefits from share-based payment arrangements | 96.1 | -- | |||||
| Proceeds from exercise of stock options | 109.8 | 153.1 | |||||
| Net cash from financing activities | (1,224.7 | ) | (433.0 | ) | |||
| Effect of exchange rates on cash and cash equivalents | 16.9 | (55.9 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 32.0 | 363.8 | |||||
| Cash and cash equivalents, beginning of period | 1,457.2 | 1,093.4 | |||||
| Cash and cash equivalents, end of period | $ | 1,489.2 | $ | 1,457.2 | |||
| Supplemental disclosure of cash flow information: | |||||||
| Cash paid during the period for the following: | |||||||
| Interest expense, net of amount capitalized | $ | 42.6 | $ | 37.8 | |||
| Income taxes | $ | 274.0 | $ | 157.4 |
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in millions, except per share data)
| Year ended December 31, 2006 (1) | |||||||||||||
| Non-GAAP Adjustments | |||||||||||||
| Reported | Patent Lawsuits Settlement | Refractive Impairment | Non-GAAP Adjusted | ||||||||||
| Sales | $ | 4,896.6 | $ | -- | $ | -- | $ | 4,896.6 | |||||
| Cost of goods sold | 1,215.1 | -- | (19.1 | ) | 1,196.0 | ||||||||
| Gross profit | 3,681.5 | -- | 19.1 | 3,700.6 | |||||||||
| Selling, general and administrative | 1,398.5 | 119.0 | -- | 1,517.5 | |||||||||
| Research and development | 512.1 | -- | -- | 512.1 | |||||||||
| Amortization of intangibles | 198.8 | -- | (125.7 | ) | 73.1 | ||||||||
| Operating income | 1,572.1 | (119.0 | ) | 144.8 | 1,597.9 | ||||||||
| Other income (expense): | |||||||||||||
| Gain (loss) from foreign currency, net | (7.9 | ) | -- | -- | (7.9 | ) | |||||||
| Interest income | 74.1 | -- | -- | 74.1 | |||||||||
| Interest expense | (42.6 | ) | -- | -- | (42.6 | ) | |||||||
| Other, net | 21.2 | -- | -- | 21.2 | |||||||||
| Earnings before income taxes | 1,616.9 | (119.0 | ) | 144.8 | 1,642.7 | ||||||||
| Income taxes | 268.8 | (21.5 | ) | 52.8 | 300.1 | ||||||||
| Net earnings | $ | 1,348.1 | $ | (97.5 | ) | $ | 92.0 | $ | 1,342.6 | ||||
| Diluted earnings per common share | $ | 4.37 | $ | (0.32 | ) | $ | 0.30 | $ | 4.35 | ||||
| Selected ratios as percent of sales | |||||||||||||
| Selling, general and administrative | 28.6 | % | 31.0 | % | |||||||||
| Operating income | 32.1 | 32.6 | |||||||||||
| Other selected financial ratios | |||||||||||||
| % Operating Income Growth | 32.3 | 17.6 | |||||||||||
| % Net Earnings Growth | 44.8 | 24.5 |
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in millions, except per share data)
| Three months ended December 31, 2005 (1) | |||||||||||||||||
| Non-GAAP Adjustments | |||||||||||||||||
| Reported | Patent Lawsuit Judgment | UK Facility Damage | SFAS 123(R) Expenses | Non-GAAP Adjusted | |||||||||||||
| Sales | $ | 1,054.9 | $ | -- | $ | -- | $ | -- | $ | 1,054.9 | |||||||
| Cost of goods sold | 255.7 | -- | (3.2 | ) | 2.1 | 254.6 | |||||||||||
| Gross profit | 799.2 | -- | 3.2 | (2.1 | ) | 800.3 | |||||||||||
| Selling, general and administrative | 585.3 | (240.0 | ) | (5.5 | ) | 7.4 | 347.2 | ||||||||||
| Research and development | 118.9 | -- | -- | 4.0 | 122.9 | ||||||||||||
| Amortization of intangibles | 21.6 | -- | -- | -- | 21.6 | ||||||||||||
| Operating income | 73.4 | 240.0 | 8.7 | (13.5 | ) | 308.6 | |||||||||||
| Other income (expense): | |||||||||||||||||
| Gain (loss) from foreign currency, net | (1.6 | ) | -- | -- | -- | (1.6 | ) | ||||||||||
| Interest income | 15.3 | -- | -- | -- | 15.3 | ||||||||||||
| Interest expense | (10.6 | ) | -- | -- | -- | (10.6 | ) | ||||||||||
| Other, net | 0.5 | -- | -- | -- | 0.5 | ||||||||||||
| Earnings before income taxes | 77.0 | 240.0 | 8.7 | (13.5 | ) | 312.2 | |||||||||||
| Income Taxes | 16.3 | 43.3 | (2.3 | ) | (3.0 | ) | 54.3 | ||||||||||
| Net Earnings | $ | 60.7 | $ | 196.7 | $ | 11.0 | $ | (10.5 | ) | $ | 257.9 | ||||||
| Diluted earnings per common share | $ | 0.19 | $ | 0.63 | $ | 0.04 | $ | (0.03 | ) | $ | 0.83 | ||||||
| Select ratios as a percent of sales | |||||||||||||||||
| Selling, general and administrative | 55.5 | % | 32.9 | % | |||||||||||||
| Operating income | 7.0 | 29.3 |
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in millions, except per share data)
| Year ended December 31, 2005 (1) | |||||||||||||||||
| Non-GAAP Adjustments | |||||||||||||||||
| Reported | Patent Lawsuit Judgment | UK Facility Damage | SFAS 123(R) Expenses | Non-GAAP Adjusted | |||||||||||||
| Sales | $ | 4,368.5 | $ | -- | $ | -- | $ | -- | $ | 4,368.5 | |||||||
| Cost of goods sold | 1,078.4 | -- | (3.2 | ) | 12.1 | 1,087.3 | |||||||||||
| Gross profit | 3,290.1 | -- | 3.2 | (12.1 | ) | 3,281.2 | |||||||||||
| Selling, general and administrative | 1,594.7 | (240.0 | ) | (5.5 | ) | 42.6 | 1,391.8 | ||||||||||
| Research and development | 421.8 | -- | -- | 23.3 | 445.1 | ||||||||||||
| Amortization of intangibles | 85.7 | -- | -- | -- | 85.7 | ||||||||||||
| Operating income | 1,187.9 | 240.0 | 8.7 | (78.0 | ) | 1,358.6 | |||||||||||
| Other income (expense): | |||||||||||||||||
| Gain (loss) from foreign currency, net | 0.7 | -- | -- | -- | 0.7 | ||||||||||||
| Interest income | 48.7 | -- | -- | -- | 48.7 | ||||||||||||
| Interest expense | (38.8 | ) | -- | -- | -- | (38.8 | ) | ||||||||||
| Other, net | 4.4 | -- | -- | -- | 4.4 | ||||||||||||
| Earnings before income taxes | 1,202.9 | 240.0 | 8.7 | (78.0 | ) | 1,373.6 | |||||||||||
| Income Taxes | 271.9 | 43.3 | (2.3 | ) | (17.6 | ) | 295.3 | ||||||||||
| Net Earnings | $ | 931.0 | $ | 196.7 | $ | 11.0 | $ | (60.4 | ) | $ | 1,078.3 | ||||||
| Diluted earnings per common share | $ | 2.98 | $ | 0.63 | $ | 0.04 | $ | (0.19 | ) | $ | 3.46 | ||||||
| Select ratios as a percent of sales | |||||||||||||||||
| Selling, general and administrative | 36.5 | % | 31.9 | % | |||||||||||||
| Operating income | 27.2 | 31.1 |
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements principally relate to statements regarding the expectations of our management with respect to the future performance of various aspects of our business. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by our forward-looking statements. Words such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "hope," "intend," "estimate," "project," "predict," "potential" and similar expressions are intended to identify forward-looking statements. These statements reflect the views of our management as of the date of this
press release with respect to future events and are based on assumptions and subject to risks and uncertainties and are not intended to give any assurance as to future results. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Factors that might cause future results to differ include, but are not limited to, the following: the development of commercially viable products may take longer and cost more than expected; changes in reimbursement procedures by third party payers may affect our sales and profits; competition may lead to worse than expected financial condition and results of operations; currency exchange rate fluctuations may negatively affect our financial condition and results of operations; pending or future litigation may negatively impact our financial condition and results of operations; litigation settlements may adversely impact our financial condition; the occurrence of excessive property and casualty, general liability
or business interruption losses, for which we are self-insured, may adversely impact our financial condition; product recalls or withdrawals may negatively impact our financial condition or results of operations; government regulation or legislation may negatively impact our financial condition or results of operations; changes in tax laws or regulations in the jurisdictions in which we and our subsidiaries are subject to taxation may adversely impact our financial performance; supply and manufacturing disruptions could negatively impact our financial condition or results of operations. You should read this press release with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except to the extent required under the federal securities laws and the rules and regulations promulgated by the Securities and Exchange Commission, we undertake no obligation to
publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.
For more information, contact:
Investor Relations and Strategic Corporate Communications