Distribution solutions, technology solutions businesses aid McKesson's Q2
SAN FRANCISCO — McKesson said its distribution solutions and technology solutions businesses helped drive the company's operating results for the second quarter ended Sept. 30.
For its distribution solutions business, McKesson reported that revenue was up 10% to $29.4 billion. The increase, the wholesaler said, was primarily driven by growth in U.S. pharmaceutical direct distribution and services revenues (which rose to nearly $26 billion), as well as the acquisition of US Oncology, the company said.
Meanwhile, revenue rose 7% for the wholesaler's technology solutions, from $770 million in second quarter 2010 to $825 million in this year's second quarter. McKesson attributed the performance to "solid progress on achieving certain customer implementation milestones."
The achievements prompted the wholesaler to raise its full-year earnings forecast.
“I am pleased with McKesson’s second-quarter operating results, with strong execution from both distribution solutions and technology solutions driving earnings growth,” McKesson chairman and CEO John Hammergren said. “Based on the momentum from our first-half results, we are raising our previous outlook for the fiscal year and now expect adjusted earnings between $6.19 and $6.39 per diluted share for the fiscal year ending March 31, 2012.”
Overall revenue for McKesson rose from to $30.2 billion, reflecting a 10% increase from the year-ago period. Second-quarter earnings per share, however, dropped to $1.18 from $1.25 in the year-ago period. Net income also fell from $296 million to $327 million.
For its operating income, the company saw an increase of $61 million to $478 million, compared with the year-ago period.