logo
Plus   Neg
Share
Email

McKesson To Review Cost Structure; To Buy Medical Specialties Distributors

McKesson Corp. (MCK) announced a multi-year strategic growth initiative which comprises multiple growth pillars, and includes a comprehensive review of the company's operations and cost structure, designed to increase efficiency. As a preliminary phase of implementing the strategic growth initiative, McKesson will incur restructuring and other charges in Fiscal 2019, which will impact the company's results on the basis of U.S. generally accepted accounting principles. The restructuring plan consists of after-tax GAAP charges that are estimated to be approximately $150 million to $210 million.

McKesson also announced that it has signed a definitive agreement to acquire Medical Specialties Distributors, a national distributor of infusion and medical-surgical supplies as well as biomedical services to alternate site and home health providers. The transaction is valued at $800 million, and is expected to close in the first half of fiscal 2019. McKesson expects the transaction will be modestly accretive to adjusted earnings per diluted share in fiscal 2019.

The company has reaffirmed its adjusted earnings outlook of $12.50 to $12.80 per diluted share for the fiscal year ended March 31, 2018. In the fourth quarter, the company preliminarily estimates recording GAAP after-tax net charges of approximately $0.6 billion to $1.9 billion.

For fiscal 2019, McKesson announced a preliminary target for adjusted earnings of $13.00 to $13.80 per diluted share.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Intel Corp. said it is probing into the hack of its fourth-quarter earnings report that prompted the chipmaker to release its earnings statement ahead of schedule. The company, which was scheduled to release the results after the market closed, released it before the market closing on Thursday. Google parent Alphabet decided to drop its Internet balloon project Loon that was launched with the idea of providing Internet access to rural areas and providing last mile connectivity. In a blog post, Loon CEO Alastair Westgarth said they have not found a way to get the costs low enough to build a long-term, sustainable business, despite gaining a number of interested partners along the way. American Airlines announced the launch of Flagship Cellars, its home delivery service for premium wines usually available onboard. The airline's move is said to be due to the excess wine it has amid the weakness in air travel demand following the coronavirus pandemic crisis. The company expects the new at-home wine program to generate about $40,000 to $50,000 in sales during the first quarter.
Follow RTT