Global Processing

Pfizer reports 30 percent drop in profit

July 24, 2006

Pfizer Inc. recently posted a 30 percent drop in second-quarter net income as sales edged up slightly but results in the year-ago period were bolstered by one-time tax gains, the Associated Press reports. It said that after adjusting for a planned asset sale, income rose 10 percent and that it would still meet its full-year guidance. Last month, Pfizer announced it selling its consumer business to Johnson & Johnson for $16.6 billion in a deal that is expected to close later this year. Pfizer now accounts for the division as a discontinued operation and has adjusted results for the quarter and last year accordingly. The world''s biggest drug company had previously predicted it would earn $2.00 a share in 2006 and said it would meet that goal despite the pending asset sale. Pfizer said that without the division, its earlier estimate is now the equivalent of about $1.93 a share, meaning the company is essentially raising its outlook by sticking to its $2.00 per share estimate. Net income fell to $2.42 billion, or 33 cents per share, from $3.46 billion, or 47 cents per share, a year ago. Tax benefits of $1.04 billion helped results in the second-quarter of 2005.