B-MS restructure cuts into 1st-qtr profit

US drug giant Bristol-Myers Squibb reported a fall in profit in the first quarter of 2008 due to restructuring costs for the down-sizing it announced at the end of last year (Marketletter December 17, 2007), but still exceeded Wall Street expectations.

Generally accepted accounting principles earnings for the company dropped 4% to $661.0 million or $0.33 per share compared with the first quarter of 2007. However, the company's revenue rose 20% to $5.18 billion, a profit, excluding the above-mentioned costs, of $0.42 per share.

Analysts polled by Thomson Financial had only expected a non-GAAP revenue of $5.12 billion, with $0.41 earnings per share. B-MS has reaffirmed its 2008 earnings per share guidance for adjusted profit as between $1.60 and $1.70. The analysts expect the higher end bracket to be the average, predicting $1.70 per share.