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IMS Health Results Below Expectations
IMS HEALTH expects financial results for the 2001 fourth quarter to be below analysts' expectations, with core revenue ranging from US$295 million to US$305 million, or a range of negative 2 percent to positive 2 percent constant dollar growth, and earnings per share of $0.22 - $0.23, a decline of between 12% to 15% from the 2000 fourth quarter.
For the full-year 2001, the company predicts between 10% to 11% constant-dollar revenue growth, and earnings per share of $0.90 - $0.91, or 6% to 7% growth. For the full-year 2002, IMS HEALTH forecasts between 8% to 10% constant-dollar revenue growth for its core business. Earnings per share in 2002 are expected to rise approximately 15% to 20%, including a benefit from the change in accounting rules for amortisation expense and the adverse impact of a strengthening U.S. dollar throughout 2001.
'Results for the quarter reflect a modest slowdown in our core revenue and services, as well as the sale of a business unit that was not completed as planned,' said David M. Thomas, IMS HEALTH's chairman and chief executive officer. 'For 2002, we have embarked on key strategic initiatives to leverage our global product development capabilities and core information competencies to meet demand for our products and advisory services.'
Through its Competitive Fitness programme, IMS HEALTH has conducted a comprehensive review of its global operations and taken steps to improve productivity across the enterprise. Actions to streamline functions, drive efficiency and improve client service are forecast to result in an US$85 - $95 million pre-tax charge recorded in the 2001 fourth quarter.
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