Boston Scientific Corp. (BSX) reported that its fourth-quarter net income decreased to $60 million or $0.04 per share from $107 million or $0.07 per share last year. The company also announced an expansion of its 2011 restructuring program. The company anticipates the reduction of 900 to 1,000 positions worldwide through a combination of employee attrition and targeted headcount reductions as a result of the expansion.
The fourth-quarter results included divestiture-related net credits, acquisition, restructuring- and litigation-related charges, and amortization expense, of $192 million or $0.14 per share. Adjusted profit per share was $0.18. On average, 22 analysts polled by Thomson Reuters expected the company to report fourth-quarter profit per share of $0.11.
Net sales decreased to $1.82 billion from $1.85 billion last year. Analysts expected revenue of $1.76 billion for the quarter.
The company estimates sales for the first quarter of 2013 in a range of $1.740 billion to $1.815 billion. The company estimates earnings on a GAAP basis in a range of $0.04 to $0.07 per share. Adjusted earnings are estimated in a range of $0.14 to $0.17 per share. Analysts expect the company to report first-quarter profit per share of $0.10 on revenue of $1.79 billion.
The company estimates sales for the full year 2013 in a range of $7.050 billion to $7.350 billion. The company estimates earnings on a GAAP basis in a range of $0.29 to $0.37 per share. Adjusted earnings are estimated in a range of $0.64 to $0.70 per share. Analysts expect the company to report fiscal 2013 profit per share of $0.43 on revenue of $7.12 billion.
The company estimates that the expansion of restructuring program will reduce gross annual pre-tax operating expenses by approximately $100 million to $115 million exiting 2013; and that the total 2011 restructuring program, including the expansion, will reduce gross annual pre-tax operating expenses by approximately $340 million to $375 million exiting 2013.
The company estimates that the implementation of the expansion will result in total pre-tax charges of approximately $140 million to $160 million, and that approximately $100 million to $120 million of these charges will result in future cash outlays. The company estimates that the implementation of the Total Program will result in total pre-tax charges of approximately $300 million to $355 million, and that approximately $270 million to $300 million of these charges will result in future cash outlays.
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