Full Press Release Details
Alcon s Fourth Quarter Sales Rise 20.0 Percent
HUNENBERG, Switzerland February 6, 2008 Alcon, Inc. (NYSE:ACL) reported global sales of $1,469.7 million for the fourth quarter of 2007, an increase of 20.0 percent over global sales for the fourth quarter of 2006, or 12.8 percent excluding the impact of foreign exchange fluctuations and the acquisition of WaveLight AG, a leading manufacturer of refractive lasers. Sales in the fourth quarter of 2007 included $15.1 million of sales related to WaveLight products since Alcon s acquisition of 77.4 percent of WaveLight s outstanding shares completed on November 9, 2007. Net earnings for the fourth quarter of 2007 were $376.5 million, or $1.25 per share on a diluted basis, compared to $354.7 million, or $1.16 per diluted share for the fourth quarter of 2006. Adjusted net earnings for the fourth quarter of 2007, which exclude a $16.8 million after-tax loss related
to the WaveLight acquisition and refractive integration, were $393.3 million, or $1.31 per diluted share, an increase of 10.9 percent over net earnings for the fourth quarter of 2006.
For the full year 2007, Alcon reported global sales of $5,599.6 million, an increase of 14.4 percent over 2006 global sales of $4,896.6 million, or 10.7 percent excluding the impact of foreign exchange fluctuations and WaveLight revenues. Net earnings for 2007 were $1,586.4 million, or $5.25 per share on a diluted basis, compared to $1,348.1 million, or $4.37 per share for the full year 2006, an increase of 17.7 percent.
For the full year 2006, excluding the impacts of the settlement of certain patent lawsuits with a competitor and charges related to the impairment of the company s refractive assets, adjusted net earnings were $1,342.6 million, or $4.35 per diluted share in 2006. For the full year 2007, excluding the impacts of the WaveLight acquisition and refractive integration and charges related to the impairment of the company s refractive assets, adjusted net earnings were $1,627.4 million, or $5.39 per diluted share, an increase of 21.2 percent over 2006.
Reconciliations of reported and adjusted results for the fourth quarter and full year are included in the financial tables below.
I am extremely pleased with our results for 2007, because they validate the strength of our business and financial model. They reflect our ability to take advantage of our established global organization to drive market share gains with our leading brands and with new products in both developed and less-developed markets. Combining this capability with the positive market environment for eye care, we expect to continue to deliver strong sales growth and even faster earnings growth, as we have since our IPO, said Cary Rayment, Alcon s chairman, president and chief executive officer.
Fourth Quarter Sales Highlights
Highlights of sales for the fourth quarter of 2007 are provided below. Unless otherwise noted, all comparisons are versus the fourth quarter of 2006.
Fourth Quarter Earnings Details
Highlights of earnings for the fourth quarter of 2007 are provided below. Unless otherwise noted, all comparisons are versus the fourth quarter of 2006. Comparisons are also made between non-GAAP adjusted results for the fourth quarter of 2007, excluding the impact of the acquisition of WaveLight AG and refractive integration, and the results for the fourth quarter of 2006. These adjustments are discussed above and also are reconciled to reported results in the financial tables below.
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 2008 and the factors impacting this guidance are provided below.
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 | |||||||||||
| Dec 31, | Dec 31, | |||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||
| Sales | $ | 1,469.7 | $ | 1,224.9 | $ | 5,599.6 | $ | 4,896.6 | ||||
| Cost of goods sold | 371.3 | 300.2 | 1,398.2 | 1,215.1 | ||||||||
| Gross profit | 1,098.4 | 924.7 | 4,201.4 | 3,681.5 | ||||||||
| Selling, general and administrative | 441.6 | 385.9 | 1,694.0 | 1,398.5 | ||||||||
| Research and development | 160.0 | 134.5 | 564.3 | 512.1 | ||||||||
| In process research and development | 9.3 | -- | 9.3 | -- | ||||||||
| Amortization of intangibles | 10.1 | 11.4 | 50.7 | 198.8 | ||||||||
| Operating income | 477.4 | 392.9 | 1,883.1 | 1,572.1 | ||||||||
| Other income (expense): | ||||||||||||
| Gain (loss) from foreign currency, net | 2.6 | 2.2 | 11.2 | (7.9 | ) | |||||||
| Interest income | 23.5 | 18.2 | 69.3 | 74.1 | ||||||||
| Interest expense | (19.3 | ) | (10.0 | ) | (50.0 | ) | (42.6 | ) | ||||
| Other, net | (4.8 | ) | 8.2 | 15.4 | 21.2 | |||||||
| Earnings before income taxes | 479.4 | 411.5 | 1,929.0 | 1,616.9 | ||||||||
| Income taxes | 102.9 | 56.8 | 342.6 | 268.8 | ||||||||
| Net earnings | $ | 376.5 | $ | 354.7 | $ | 1,586.4 | $ | 1,348.1 | ||||
| Basic earnings per common share | $ | 1.27 | $ | 1.17 | $ | 5.32 | $ | 4.43 | ||||
| Diluted earnings per common share | $ | 1.25 | $ | 1.16 | $ | 5.25 | $ | 4.37 | ||||
| Basic weighted average common shares | 297,619,875 | 302,000,977 | 298,353,894 | 304,279,489 | ||||||||
| Diluted weighted average common shares | 301,284,135 | 305,934,140 | 302,162,019 | 308,671,707 |
ALCON, INC. AND SUBSIDIARIES
| Three months ended | Foreign | %Change in | ||||||||||
| Dec 31, | Currency | Constant | ||||||||||
| 2007 | 2006 | %Change | %Change | Currency | ||||||||
| GEOGRAPHIC SALES | ||||||||||||
| United States: | ||||||||||||
| Pharmaceutical | $ | 296.8 | $ | 255.3 | 16.3 | % | - | % | 16.3 | % | ||
| Surgical | 265.1 | 243.6 | 8.8 | - | 8.8 | |||||||
| Consumer Eye Care | 85.3 | 79.3 | 7.6 | - | 7.6 | |||||||
| Total United States Sales | 647.2 | 578.2 | 11.9 | - | 11.9 | |||||||
| International: | ||||||||||||
| Pharmaceutical | 281.4 | 220.6 | 27.6 | 11.1 | 16.5 | |||||||
| Surgical | 435.7 | 338.9 | 28.6 | 11.6 | 17.0 | |||||||
| Consumer Eye Care | 105.4 | 87.2 | 20.9 | 10.7 | 10.2 | |||||||
| Total International Sales | 822.5 | 646.7 | 27.2 | 11.3 | 15.9 | |||||||
| Total Global Sales | $ | 1,469.7 | $ | 1,224.9 | 20.0 | % | 6.0 | % | 14.0 | % | ||
| PRODUCT SALES | ||||||||||||
| Infection/inflammation | 212.3 | 182.6 | 16.3 | % | ||||||||
| Glaucoma | 236.5 | 184.4 | 28.3 | |||||||||
| Allergy | 91.1 | 69.7 | 30.7 | |||||||||
| Otic | 50.9 | 39.4 | 29.2 | |||||||||
| Other pharmaceuticals/rebates | (12.6 | ) | (0.2 | ) | N/M | |||||||
| Total Pharmaceutical | 578.2 | 475.9 | 21.5 | 5.1 | % | 16.4 | % | |||||
| Intraocular lenses | 259.3 | 208.6 | 24.3 | |||||||||
| Cataract/vitreoretinal | 420.1 | 361.7 | 16.1 | |||||||||
| Refractive | 21.4 | 12.2 | 75.4 | |||||||||
| Total Surgical | 700.8 | 582.5 | 20.3 | 6.7 | 13.6 | |||||||
| Contact lens disinfectants | 104.7 | 92.2 | 13.6 | |||||||||
| Artificial tears | 61.1 | 48.7 | 25.5 | |||||||||
| Other | 24.9 | 25.6 | (2.7 | ) | ||||||||
| Total Consumer Eye Care | 190.7 | 166.5 | 14.5 | 5.6 | 8.9 | |||||||
| Total Global Sales | 1,469.7 | 1,224.9 | 20.0 | % | 6.0 | % | 14.0 | % |
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. This measure is considered a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. Certain reclassifications have been made to prior year amounts to conform with current year presentation.
ALCON, INC. AND SUBSIDIARIES
| Twelve months ended | Foreign | %Change in | ||||||||||
| Dec 31, | Currency | Constant | ||||||||||
| 2007 | 2006 | %Change | %Change | Currency | ||||||||
| GEOGRAPHIC SALES | ||||||||||||
| United States: | ||||||||||||
| Pharmaceutical | $ | 1,279.5 | $ | 1,170.6 | 9.3 | % | - | % | 9.3 | % | ||
| Surgical | 1,011.8 | 950.4 | 6.5 | - | 6.5 | |||||||
| Consumer Eye Care | 381.2 | 342.7 | 11.2 | - | 11.2 | |||||||
| Total United States Sales | 2,672.5 | 2,463.7 | 8.5 | - | 8.5 | |||||||
| International: | ||||||||||||
| Pharmaceutical | 1,034.3 | 836.6 | 23.6 | 7.1 | 16.5 | |||||||
| Surgical | 1,488.0 | 1,253.4 | 18.7 | 6.8 | 11.9 | |||||||
| Consumer Eye Care | 404.8 | 342.9 | 18.1 | 6.4 | 11.7 | |||||||
| Total International Sales | 2,927.1 | 2,432.9 | 20.3 | 6.8 | 13.5 | |||||||
| Total Global Sales | $ | 5,599.6 | $ | 4,896.6 | 14.4 | % | 3.4 | % | 11.0 | % | ||
| PRODUCT SALES | ||||||||||||
| Infection/inflammation | 814.5 | 730.2 | 11.5 | % | ||||||||
| Glaucoma | 830.1 | 693.8 | 19.6 | |||||||||
| Allergy | 446.8 | 386.6 | 15.6 | |||||||||
| Otic | 257.0 | 237.0 | 8.4 | |||||||||
| Other pharmaceuticals/rebates | (34.6 | ) | (40.4 | ) | N/M | |||||||
| Total Pharmaceutical | 2,313.8 | 2,007.2 | 15.3 | 3.0 | % | 12.3 | % | |||||
| Intraocular lenses | 919.4 | 794.4 | 15.7 | |||||||||
| Cataract/vitreoretinal | 1,528.8 | 1,357.7 | 12.6 | |||||||||
| Refractive | 51.6 | 51.7 | (0.2 | ) | ||||||||
| Total Surgical | 2,499.8 | 2,203.8 | 13.4 | 3.8 | 9.6 | |||||||
| Contact lens disinfectants | 440.2 | 370.6 | 18.8 | |||||||||
| Artificial tears | 233.2 | 200.4 | 16.4 | |||||||||
| Other | 112.6 | 114.6 | (1.7 | ) | ||||||||
| Total Consumer Eye Care | 786.0 | 685.6 | 14.6 | 3.1 | 11.5 | |||||||
| Total Global Sales | 5,599.6 | 4,896.6 | 14.4 | % | 3.4 | % | 11.0 | % |
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. This measure is considered a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. Certain reclassifications have been made to prior year amounts to conform with current year presentation.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
| Dec. 31, | Dec. 31, | ||||||
| 2007 | 2006 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 2,134.3 | $ | 1,489.2 | |||
| Short term investments | 669.8 | 321.0 | |||||
| Trade receivables, net | 1,089.2 | 912.8 | |||||
| Inventories | 548.5 | 473.8 | |||||
| Deferred income tax assets | 89.3 | 122.5 | |||||
| Other current assets | 293.7 | 142.8 | |||||
| Total current assets | 4,824.8 | 3,462.1 | |||||
| Long term investments | 41.8 | 91.1 | |||||
| Property, plant and equipment, net | 1,030.0 | 920.7 | |||||
| Intangible assets, net | 89.6 | 95.2 | |||||
| Goodwill | 626.0 | 553.2 | |||||
| Long term deferred income tax assets | 322.1 | 235.7 | |||||
| Other assets | 81.3 | 69.3 | |||||
| Total assets | $ | 7,015.6 | $ | 5,427.3 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 208.7 | $ | 168.9 | |||
| Short term borrowings | 1,751.1 | 926.5 | |||||
| Current maturities of long term debt | 1.3 | 5.8 | |||||
| Other current liabilities | 901.1 | 899.9 | |||||
| Total current liabilities | 2,862.2 | 2,001.1 | |||||
| Long term debt, net of current maturities | 52.2 | 49.0 | |||||
| Long term deferred income tax liabilities | 23.9 | 10.1 | |||||
| Other long term liabilities | 702.6 | 453.5 | |||||
| Contingencies | |||||||
| Shareholders equity: | |||||||
| Common shares | 43.1 | 43.9 | |||||
| Additional paid-in capital | 1,299.8 | 1,064.5 | |||||
| Accumulated other comprehensive income | 203.0 | 127.3 | |||||
| Retained earnings | 3,392.2 | 3,201.9 | |||||
| Treasury shares, at cost | (1,563.4 | ) | (1,524.0 | ) | |||
| Total shareholders' equity | 3,374.7 | 2,913.6 | |||||
| Total liabilities and shareholders' equity | $ | 7,015.6 | $ | 5,427.3 |
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Twelve months ended December 31, | |||||||
| 2007 | 2006 | ||||||
| Cash provided by (used in) operating activities: | |||||||
| Net earnings | $ | 1,586.4 | $ | 1,348.1 | |||
| Adjustments to reconcile net earnings to cash provided from operating activities: | |||||||
| Depreciation | 159.7 | 158.5 | |||||
| Amortization of intangibles | 50.7 | 198.8 | |||||
| In process research and development | 9.3 | -- | |||||
| Share-based payments | 84.7 | 81.2 | |||||
| Tax benefit from share-based compensation | 15.6 | -- | |||||
| Deferred income taxes | (26.3 | ) | (105.9 | ) | |||
| Loss (gain) on sale of assets | (11.7 | ) | 2.6 | ||||
| Provisions for losses | -- | (120.3 | ) | ||||
| Changes in operating assets and liabilities, net of effects from business acquisition: | |||||||
| Trading securities | (405.1 | ) | 74.0 | ||||
| Trade receivables | (95.1 | ) | (148.7 | ) | |||
| Inventories | 3.4 | (11.5 | ) | ||||
| Other assets | (129.4 | ) | (5.7 | ) | |||
| Accounts payable and other current liabilities | 110.4 | (93.9 | ) | ||||
| Other long term liabilities | 116.9 | 28.7 | |||||
| Net cash from operating activities | 1,469.5 | 1,405.9 | |||||
| Cash provided by (used in) investing activities: | |||||||
| Purchases of property, plant and equipment | (227.2 | ) | (222.3 | ) | |||
| Proceeds from sale of assets | 3.1 | 1.5 | |||||
| Acquisition of business, net of cash acquired | (111.5 | ) | -- | ||||
| Purchase of intangible assets | (0.1 | ) | -- | ||||
| Purchase of available-for-sale investments | (36.6 | ) | (371.0 | ) | |||
| Proceeds from sales of available-for-sale investments | 145.2 | 425.7 | |||||
| Net cash from investing activities | (227.1 | ) | (166.1 | ) | |||
| Cash provided by (used in) financing activities: | |||||||
| Net proceeds from (repayment of) short term debt | 729.4 | (108.3 | ) | ||||
| Proceeds from issuance of long term debt | 1.3 | -- | |||||
| Repayment of long term debt | (6.1 | ) | (6.3 | ) | |||
| Dividends on common shares | (612.8 | ) | (416.8 | ) | |||
| Acquisition of treasury shares | (1,003.4 | ) | (899.2 | ) | |||
| Proceeds from exercise of stock options | 189.8 | 109.8 | |||||
| Tax benefits from share-based payment arrangements | 95.2 | 96.1 | |||||
| Net cash from financing activities | (606.6 | ) | (1,224.7 | ) | |||
| Effect of exchange rates on cash and cash equivalents | 9.3 | 16.9 | |||||
| Net increase in cash and cash equivalents | 645.1 | 32.0 | |||||
| Cash and cash equivalents, beginning of period | 1,489.2 | 1,457.2 | |||||
| Cash and cash equivalents, end of period | $ | 2,134.3 | $ | 1,489.2 |
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in millions, except per share data)
| Year ended December 31, 2007 (1) | ||||||||||||
| Non-GAAP Adjustments | ||||||||||||
| Reported | Refractive Impairment | WaveLight Acquisition & Refractive Integration | Non-GAAP Adjusted | |||||||||
| Sales | $ | 5,599.6 | $ | -- | $ | (15.1 | ) | $ | 5,584.5 | |||
| Cost of goods sold | 1,398.2 | (24.0 | ) | (16.4 | ) | 1,357.8 | ||||||
| Gross profit | 4,201.4 | 24.0 | 1.3 | 4,226.7 | ||||||||
| Selling, general and administrative | 1,694.0 | -- | (7.9 | ) | 1,686.1 | |||||||
| Research and development | 564.3 | -- | (6.4 | ) | 557.9 | |||||||
| In process research and development | 9.3 | -- | (9.3 | ) | -- | |||||||
| Amortization of intangibles | 50.7 | (8.7 | ) | (1.5 | ) | 40.5 | ||||||
| Operating income | 1,883.1 | 32.7 | 26.4 | 1,942.2 | ||||||||
| Other income (expense): | ||||||||||||
| Gain (loss) from foreign currency, net | 11.2 | -- | -- | 11.2 | ||||||||
| Interest income | 69.3 | -- | -- | 69.3 | ||||||||
| Interest expense | (50.0 | ) | -- | -- | (50.0 | ) | ||||||
| Other, net | 15.4 | -- | -- | 15.4 | ||||||||
| Earnings before income taxes | 1,929.0 | 32.7 | 26.4 | 1,988.1 | ||||||||
| Income Taxes | 342.6 | 11.9 | 6.2 | 360.7 | ||||||||
| Net Earnings | $ | 1,586.4 | $ | 20.8 | $ | 20.2 | $ | 1,627.4 | ||||
| Diluted earnings per common share | $ | 5.25 | $ | 0.07 | $ | 0.07 | $ | 5.39 | ||||
| Selected ratios as percent of sales | ||||||||||||
| Gross profit | 75.0 | % | 75.7 | % | ||||||||
| Selling, general and administrative | 30.2 | 30.2 | ||||||||||
| Operating income | 33.6 | 34.8 | ||||||||||
| Other selected financial ratios | ||||||||||||
| % Operating Income Growth | 19.8 | % | 21.5 | % | ||||||||
| % Net Earnings Growth | 17.7 | 21.2 |
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 | 28.5 | % | 31.0 | % | |||||||||
| Operating income | 32.1 | 32.6 |
ALCON, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Disclosures (Unaudited)
(USD in millions, except per share data)
| Three months ended December 31, 2007 (1) | ||||||||||
| Non-GAAP Adjustments | ||||||||||
| Reported | WaveLight Acquisition & Refractive Integration | Non-GAAP Adjusted | ||||||||
| Sales | $ | 1,469.7 | $ | (15.1 | ) | $ | 1,454.6 | |||
| Cost of goods sold | 371.3 | (13.2 | ) | 358.1 | ||||||
| Gross profit | 1,098.4 | (1.9 | ) | 1,096.5 | ||||||
| Selling, general and administrative | 441.6 | (7.9 | ) | 433.7 | ||||||
| Research and development | 160.0 | (4.3 | ) | 155.7 | ||||||
| In process research and development | 9.3 | (9.3 | ) | -- | ||||||
| Amortization of intangibles | 10.1 | (1.5 | ) | 8.6 | ||||||
| Operating income | 477.4 | 21.1 | 498.5 | |||||||
| Other income (expense): | ||||||||||
| Gain (loss) from foreign currency, net | 2.6 | -- | 2.6 | |||||||
| Interest income | 23.5 | -- | 23.5 | |||||||
| Interest expense | (19.3 | ) | -- | (19.3 | ) | |||||
| Other, net | (4.8 | ) | -- | (4.8 | ) | |||||
| Earnings before income taxes | 479.4 | 21.1 | 500.5 | |||||||
| Income taxes | 102.9 | 4.3 | 107.2 | |||||||
| Net earnings | $ | 376.5 | $ | 16.8 | $ | 393.3 | ||||
| Diluted earnings per common share | $ | 1.25 | $ | 0.06 | $ | 1.31 | ||||
| Selected ratios as percent of sales | ||||||||||
| Gross Profit | 74.7 | % | 75.4 | % | ||||||
| Selling, general and administrative | 30.0 | 29.8 | ||||||||
| Operating income | 32.5 | 34.3 |
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:
Vice President, Investor Relations and Strategic Corporate Communications
Director, Investor Relations