Net down, per-share earnings up at McK

Drug Store News, Nov 19, 1990

Net down, per-share earnings up at McK

SAN FRANCISCO - McKesson announced net income declined 6 percent for the second quarter ended Sept. 30, to $24.9 million, from $26.4 million in the year-earlier period.

However, with fewer shares outstanding, fully diluted earnings per share rose 2 percent, to 55 cents. Fully diluted shares in the quarter fell to 44.4 million from 47.4 million, reflecting the repurchase of about 3.1 million shares during the last 12 months. Net interest expense in the quarter rose to $12.3 million from $9.3 million as a result of the cost of share repurchase.

Second-quarter revenues were up 9 percent, to $2.03 billion, from $1.86 billion.

Quarterly results continued to be affected by a decline in the profitability of McKesson's Armor All Products subsidiary, offset by a "strong recovery" in the PCS prescription claims processing business, said Alan Seelenfreund, chairman and ceo.