Early Access

10-QPeriod: Q3 FY2008

BRISTOL MYERS SQUIBB CO Quarterly Report for Q3 Ended Sep 30, 2008

Filed October 23, 2008For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) reported a significant increase in net sales for the third quarter of 2008, reaching $5.3 billion, a 14% rise over the same period in 2007, driven by strong performance in both its Pharmaceutical and Nutritional segments. This growth was propelled by key products like PLAVIX, ABILIFY, and REYATAZ, which saw substantial sales increases. The company also completed the divestiture of its ConvaTec business for approximately $4.1 billion, significantly impacting its financial position and reporting a substantial gain. Despite the robust sales growth, diluted net earnings per common share from continuing operations saw a decline, partly due to a $224 million impairment charge related to auction rate securities and $107 million in costs associated with the Productivity Transformation Initiative (PTI). The company is actively managing costs through the PTI, aiming for significant annual savings. BMY also announced plans for an Initial Public Offering (IPO) for its Mead Johnson Nutritionals business. The company's strategic focus remains on pipeline expansion, key product growth, and cost management, navigating a challenging economic environment.

Financial Highlights

30 data points
Beta

Revenue

$5.25B

0.7% Gross Margin

Net Income

$2.58B

0.5% Net Margin

EPS (Diluted)

$1.28

Cash & Equivalents

$7.17B

Free Cash Flow

$1.23B

Financial Statements
Beta
Revenue$5.25B
Cost of Revenue$1.63B
Gross Profit$3.62B
R&D Expenses$834.00M
SG&A Expenses$1.21B
Operating Expenses$4.10B
Net Income$2.58B
EPS (Basic)$1.30
EPS (Diluted)$1.28

Key Highlights

  • 1Total net sales increased by 14% to $5.3 billion in Q3 2008 compared to Q3 2007.
  • 2Pharmaceutical net sales grew by 15% to $4.5 billion, while Nutritional net sales increased by 10% to $744 million.
  • 3The company completed the divestiture of its ConvaTec business for approximately $4.1 billion, resulting in a significant pre-tax gain.
  • 4Diluted earnings per share from continuing operations decreased to $0.30 in Q3 2008 from $0.38 in Q3 2007.
  • 5A $224 million impairment charge was recognized for auction rate securities in Q3 2008.
  • 6Costs associated with the Productivity Transformation Initiative (PTI) amounted to $107 million in Q3 2008.
  • 7Plans were announced for an Initial Public Offering (IPO) of Mead Johnson Nutritionals.
  • 8The company received approximately $1.0 billion in cash from Eli Lilly's tender offer for ImClone Systems Incorporated shares.

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