Pfizer

Global pharmaceutical behemoth Pfizer presented an upbeat face when it reported second-quarter 2006 results showing that net profit had tumbled about 30%, to $2.42 billion, or earnings per share of $0.33. It pointed out that, after adjusting for the planned sale of its consumer unit to Johnson & Johnson for $16.6 billion (Marketletter July 3), adjusted income rose 10%. Net revenues for the three months edged up 3% to $11.74 billion.

After allowing for the discontinuation of the consumer business, Pfizer's earnings for the reporting quarter reached $3.66 billion, or $0.50 a share, which was ahead of consensus forecasts of $0.48 from analysts polled by Thomson Financial. The stock rose $0.40 to $23.70 on the day of the announcement, July 20.

"Second-quarter 2006 performance exceeded our expectations," said the firm's chief executive, Hank McKinnell, noting: "our outlook for the full year has similarly improved. Previously we had projected full-year 2006 adjusted diluted EPS for Pfizer Inc of about $2.00 which, after reclassifying earnings from our Consumer Healthcare business to discontinued operations, is now equivalent to about $1.93. We now estimate that, even with the sale of the consumer business and notwithstanding the dynamics of our operating environment, we will achieve our previous expectation, in effect about a seven-cent improvement in our projected full-year adjusted diluted EPS. At current exchange rates, we continue to target a return to revenue growth in 2007 and average annual growth in adjusted diluted EPS over 2007 and 2008 in the high single digits."