Profits soar for McKesson during Q1
SAN FRANCISCO A healthcare services and information technology company attributed its jump in profit to strong cost controls.
McKesson reported late Tuesday that while revenues for the first quarter (ended June 30) were flat, first-quarter earnings per diluted share was $1.06, a 28% increase compared with the same time last year. This, the company said, led to significant operating margin expansion in both segments, resulting in 12% growth in Distribution Solutions operating profit and 56% growth in Technology Solutions operating profit.
In the first quarter, McKesson revenues remained at $26.7 billion, primarily impacted by the Fiscal 2009 loss of certain customers in the U.S. pharmaceutical distribution business.
The company continues to execute a balanced capital deployment strategy designed to create additional shareholder value. During the first quarter, McKesson repurchased $275 million of common stock, leaving $555 million remaining on its current share repurchase authorization. For the quarter, McKesson had cash flow from operations of $907 million and ended the quarter with cash of $2.6 billion.
“McKesson had excellent first quarter results, driven by strong performance across the entire company. Every business in both our Distribution and Technology segments met or exceeded our earnings expectations, giving us positive momentum for the remainder of our fiscal year,” said John H. Hammergren, chairman and CEO at McKesson.