McKesson Launches Comprehensive Review of Operations
26 April 2018 - 9:42AM
Dow Jones News
By Maria Armental
McKesson Corp. (MCK), which has faced scrutiny over its handling
of opioid drugs, is planning a "comprehensive review" of its
operations as part of a multiyear strategic plan to drive
growth.
As part of its revamped focus, the San Francisco-based drug
distributor has agreed to buy Medical Specialties Distributors, a
national distributor of infusion and medical-surgical supplies, in
a roughly $800 million deal that is expected to close in the first
half of fiscal 2019.
For the next fiscal year, which begins April 1, 2019, McKesson
projects adjusted profit at a $13 a share to 13.80 a share.
Analysts polled by Thomson Reuters expect adjusted earnings of
$13.36 a share.
On Wednesday, McKesson said the latest cost-cutting plan, which
includes an unspecified number of job cuts, would result in roughly
$150 million to $210 million in after-tax charges in the current
fiscal year.
McKesson maintained its fiscal 2018 guidance of $12.50 a share
to $12.80 a share, which includes about $100 million to create a
non-profit foundation to help fight the opioid epidemic in the U.S.
It expects to record between $600 million and $1.9 billion in
restructuring charges in the fourth quarter.
The company is expected to disclose more information during a
conference call Thursday morning.
Shares, which rose 2% in Wednesday trading to $151.71, rose 1.5%
after hours.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
April 25, 2018 19:27 ET (23:27 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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