CORRECT: Schering-Plough 3Q Earnings Down 16% On Charges

Date : 10/22/2009 @ 10:23AM
Source : Dow Jones News
Stock : Schering-Plough Corp. (SGP)
Quote : 28.15  0.0 (0.00%) @ 2:05AM

CORRECT: Schering-Plough 3Q Earnings Down 16% On Charges

Schering Plough (NYSE:SGP)
Historical Stock Chart

5 Years : From Jan 2013 to Jan 2018

Click Here for more Schering Plough Charts.

("Schering-Plough 3Q Earnings Down 16% On Charges," published at 6:43 a.m. EDT, misstated the company's year-ago profit. A corrected story follows.)


Schering-Plough Corp.'s (SGP) third-quarter profit fell 16% on increased charges while the company saw a 5% drop in sales of the cholesterol drugs it sells jointly with merger partner Merck & Co. (MRK)

The companies' joint venture has been under pressure since an early 2008 study raised questions about the safety and effectiveness of Vytorin and Zetia. Meanwhile, the $49 billion Schering-Merck deal announced in March remains on track to close in the current quarter. Merck is buying Schering to diversify its pipeline, a move sparked by continuing generic competition, pricing pressure and difficulty in bringing new drugs to market.

Schering-Plough's earnings dropped to $515 million, or 29 cents a share, from $614 million, or 35 cents a share, a year earlier. Excluding acquisition-related charges and other impacts, earnings rose to 40 cents a share from 39 cents a share.

Net sales fell 1.7% to $4.5 billion, reflecting a 6-percentage-point hit from currency changes.

Analysts surveyed by Thomson Reuters were expecting earnings, excluding items, of 40 cents a share on revenue of $4.47 billion.

Gross margin fell to 61.8% from 62% on the charges, and fell 1 percentage point excluding them on the currency changes.

Three-fifths of the cholesterol venture's sales drop was due to the foreign-exchange fluctuations. Sales slid 10% in the U.S.

Among Schering-Plough's non-cholesterol treatments, sales of arthritis drug Remicade rose 8%, or 18% excluding currency changes, while allergy treatment Nasonex saw a 3% increase, also held back by foreign exchange rates. Cancer drug Temodar grew 2%.

Schering-Plough shares closed Wednesday at $29.01 and didn't trade premarket. The stock is up 70% this year.

Merck is expected to report its results later Thursday.

-By Mike Barris and Kevin Kingsbury, Dow Jones Newswires; 212-416-2330;


Latest SGP Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.