Alcon's Second Quarter Sales Rise 11.8 Percent.HUNENBERG, Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. -- Alcon, Inc. (NYSE NYSE See: New York Stock Exchange :ACL See access control list. 1. ACL - Access Control List. 2. ACL - Association for Computational Linguistics. 3. ACL - A Coroutine Language. A Pascal-based implementation of coroutines. ["Coroutines", C.D. ) reported global sales of $1,310.8 million for the second quarter of 2006, an increase of 11.8 percent over global sales in the second quarter of 2005. The fluctuations in foreign currencies did not have an impact on the growth rate of global sales in the quarter. Net earnings for the second quarter of 2006 increased 43.3 percent to $465.6 million, or $1.50 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared to $325.0 million, or $1.04 per share for the second quarter of 2005. Earnings in the second quarter of 2006 were positively impacted by the reduction of an accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. liability related to the settlement of several intellectual property lawsuits between Alcon and a competitor, Advanced Medical Optics Advanced Medical Optics, Inc., (NYSE: EYE) (known as AMO) is a global medical device leader focused on the discovery and delivery of innovative vision technologies that optimize the quality of life for people of all ages. , Inc. The after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impact of this non-cash reduction was $99.1 million, or $0.32 per share on a diluted basis. Net earnings in the second quarter of 2006 were also reduced by approximately $12.5 million, or $0.04 per share, due to the expensing of share-based compensation as a result of the implementation of Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) 123(R). If SFAS 123(R) had been in effect in the second quarter of 2005, an after-tax charge of $0.03 per share would have been incurred in that quarter. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]"This was an excellent quarter for Alcon as the continued execution of our operating strategy led to strong sales growth in all of our major product groups that translated to continued healthy earnings growth. We experienced global market share gains in key areas of our pharmaceutical business resulting in growth in the mid teens or higher in most of our key branded products. Our surgical business grew faster than the overall market on both a unit and dollar basis due to exceptionally strong IOL IOL Intraocular lens, see there growth that further widened our leadership in this category. Finally, our consumer business saw dramatic increases in market share in the U.S. due to the continued success of the launch of OPTI-FREE(R) RepleniSH re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. (TM) multi-purpose disinfecting solution and the withdrawal of a competitive product from the market," said Cary Car·y A town of east-central North Carolina, an industrial suburb of Raleigh. Population: 98,000. Rayment, Alcon's chairman, president and chief executive officer. E[acute accent]Second Quarter Sales Highlights E[acute accent]Highlights of sales for the second quarter of 2006 are provided below. Unless otherwise noted, all comparisons are versus the second quarter of 2005. E[acute accent]--U.S. sales grew 16.0 percent to $690.1 million and International sales grew 7.6 percent to $620.7 million. Excluding the impact of foreign exchange fluctuations, International sales grew 7.4 percent. While price was neutral for the company as a whole, it had a negative impact on international sales. E[acute accent]--Pharmaceutical sales grew 11.3 percent to $559.5 million. On a constant currency basis, pharmaceutical sales grew 11.1 percent. Sales of glaucoma glaucoma (glôkō`mə), ocular disorder characterized by pressure within the eyeball caused by an excessive amount of aqueous humor (the fluid substance filling the eyeball). products increased 12.0 percent, due to growth in sales of Travatan(R) and Azopt Azopt® Brinzolamide Ophthalmology A topical carbonic anhydrase inhibitor used to manage ↑ intraocular pressure in Pts with ocular HTN or open-angle glaucoma. See Open-angle galucoma. (R) ophthalmic solutions ophthalmic solution n. A sterile solution that is free from foreign particles and is compounded and dispensed for eyedrops. which offset declines in older glaucoma products. On a global basis, Travatan(R) sales rose 19.8 percent due to share gains in the U.S. and other markets, while Azopt(R) sales increased 17.6 percent as it benefited from an increased appreciation of its efficacy as an adjunctive therapy adjunctive therapy Medtalk A therapeutic maneuver(s) with an ancillary role in treating a disease by ↓ M&M, but not part of the immediate therapy required to stabilize the Pt. Cf Adjuvant therapy. with prostaglandin analogues Prostaglandin analogue A class of drugs that are similar in structure and function to prostaglandin. Mentioned in: Glaucoma , such as Travatan(R) solution. Sales of infection/inflammation products rose 15.4 percent as Vigamox(R) ophthalmic solution continued to gain market share in the U.S. Sales of NevanacTM ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. suspension, which was introduced in the third quarter of 2005, also contributed to the growth of this category. Sales of allergy allergy, hypersensitive reaction of the body tissues of certain individuals to certain substances that, in similar amounts and circumstances, are innocuous to other persons. Allergens, or allergy-causing substances, can be airborne substances (e.g. products rose 1.2 percent as a decline in wholesaler inventories of Patanol Patanol® Olopatadine Ophthalmology An agent used to relieve eye itching in allergic conjunctivitis (R) ophthalmic solution in the U.S. led to slower reported sales in the second quarter despite a strong spring allergy season. Otic otic (ot´ik) auditory (1). o·tic adj. Of, relating to, or located near the ear; auricular. Otic Pertaining to the ear. product sales grew 20.0 percent, with Ciprodex Cip·ro·dex A trademark for a combination of the drugs ciprofloxacin and dexamethasone. (R) otic suspension continuing to gain market share in the U.S. during the heavy usage summer season. E[acute accent]--Surgical sales rose 8.9 percent to $567.4 million. On a constant currency basis, surgical sales rose 9.1 percent. Sales of intraocular lenses Intraocular lens Lens made of silicone or plastic placed within the eye; can be corrective. Mentioned in: Cataract Surgery increased 16.7 percent to $205.5 million. In terms of units, the AcrySof(R) line of intraocular lenses grew 9.7 percent, well above the underlying market growth. Dollar growth in intraocular lenses was higher than unit growth because the company continued to be successful in migrating customers to higher performance products. Combined sales of AcrySof(R) IQ and AcrySof(R) Natural lenses gained 39.4 percent, partly due to receiving designation of the AcrySof(R) IQ lens as a new technology IOL under Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. . In addition, sales of AcrySof(R) ReSTOR(R) lenses increased 252.9 percent to $26.7 million. Sales of cataract cataract, in medicine, opacity of the lens of the eye, which impairs vision. In the young, cataracts are generally congenital or hereditary; later they are usually the result of degenerative changes brought on by aging or systemic disease (diabetes). and vitreoretinal vitreoretinal /vit·reo·ret·i·nal/ (vit?re-o-ret´i-n'l) of or pertaining to the vitreous and retina. vit·re·o·ret·i·nal adj. products rose 5.5 percent, with strong growth in the U.S. that was partially offset by relatively flat growth internationally. In the cataract area, the company shipped more than 400 Infiniti This article is about Nissan's automobile brand. For the brand of recordable optical media by Medea, see Infiniti (Medea). Infiniti is a luxury brand of Japanese automaker Nissan Motor Co., Ltd. (R) vision systems in the second quarter, which represents more than a 30 percent increase in units compared to the second quarter of 2005 and over 60 percent compared to the first quarter of 2006. Growth came mostly from upgrades from older technology, but we also were successful in converting competitive systems to the Infiniti(R) system. On the vitreoretinal side, steady growth of disposable products Disposable products are items that are not intended by the manufacturer to be reused more than once or a few times as compared to more permanent serviceable and reusable items. Some products that have disposable versions are:
capacity to refract light. refractive error a difference between the focal length of the cornea and lens, and the length of the eye, resulting in myopia or hyperopia. revenue declined 6.2% percent due to a decrease in procedure fees in the U.S. E[acute accent]--Consumer eye care sales increased 23.8 percent to $183.9 million, accounting for 14.0 percent of total sales. On a constant currency basis, consumer eye care sales rose 23.5 percent. Sales of contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. disinfectants grew 38.1 percent due to the continued success of OPTI-FREE(R) RepleniSH(R) after it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have launch and because OPTI-FREE(R) RepleniSH(R) and OPTI-FREE(R) EXPRESS(R) disinfecting solutions both benefited from the market withdrawal of a competitive product during the quarter. In the U.S., where the impact of this withdrawal has been the greatest, the company's disinfecting solution franchise has gained 9.2 share points in 2006 and now holds a 33.2 percent share of the total market. Sales of artificial tears artificial tears A solution containing 0.5% carboxymethyl cellulose or 5% polyvinyl alcohol, used to treat dry eye–xerophthalmia, often associated with Sjögren syndrome, which may also be due to sarcoidosis, senile lacrimal gland atrophy, acute or were also strong, increasing 15.9 percent due to continued growth of Systane(R) lubricant Lubricant A gas, liquid, or solid used to prevent contact of parts in relative motion, and thereby reduce friction and wear. In many machines, cooling by the lubricant is equally important. eye drops eye drops eye npl → gouttes fpl pour les yeux eye drops eye npl → Augentropfen pl on a global basis. E[acute accent]Second Quarter Earnings Details E[acute accent]Highlights of earnings for the second quarter of 2006 are provided below. Unless otherwise noted, all increases are versus the second quarter of 2005. E[acute accent]--Gross profit increased 11.4 percent, while gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. declined 0.3 percentage points to 75.2 percent of sales. The decline was due to the impact of share-based compensation expenses, which totaled $3.6 million. E[acute accent]--Selling, general and administrative expenses as a percent of sales declined 9.0 percentage points to 20.2 percent, due to the recording of a $121.0 million non-cash reduction in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. provisions related to the settlement of patent litigation with Advanced Medical Optics, Inc. SG&A expenses also included $ 9.6 million of share-based compensation that was not included in expenses in 2005. Research and development expenses as a percent of sales increased 0.9 percentage points to 9.5 percent of sales, due to expenses associated with outside collaboration Working together on a project. See collaborative software. agreements, other increases in project spending and $4.9 million of share-based compensation that was not included in last year's second quarter. E[acute accent]--Operating profits increased 37.2 percent to $575.8 million, or 43.9 percent of sales, primarily due to the $121.0 million non-cash reduction of earlier litigation provisions, offset by the inclusion of $18.1 million of share-based compensation expense. E[acute accent]--Net income rose 43.3 percent as a result of healthy sales growth, the positive after-tax effect of the legal settlement and a lower effective tax rate, which were partially offset by the unfavorable after-tax impact of share-based compensation of $12.5 million. E[acute accent]New Product and R&D Pipeline Update E[acute accent]Summarized below are updates on selected new products and significant research and development activities. E[acute accent]--Alcon announced a co-promotion Co-promotion is a marketing practice where a company in addition to its own, uses another company's sales force to promote the same brand or range of brands. The term is frequently confused with Co-marketing. See also Marketing co-operation agreement with Eli Lilly and Company Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company and one of the world's largest corporations. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States. on their pipeline product Arxxant(a) used to treat nonproliferative diabetic retinopathy diabetic retinopathy n. Retinal changes occurring in long-term diabetes and characterized by punctate hemorrhages, microaneurysms, and sharply defined waxy exudates. . Under the terms of the agreement, Alcon will be primarily responsible for promoting Arxxant(a) to retinal retinal /ret·i·nal/ (ret´i-n'l) 1. pertaining to the retina. 2. the aldehyde of retinol, derived from absorbed dietary carotenoids or esters of retinol and having vitamin A activity. specialists and general ophthalmologists if and when it is approved by the U.S. Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ). E[acute accent]--Alcon Japan launched both the AcrySof(R) Natural intraocular lens and the AcrySert(R) IOL insertion device An insertion device is a part of a synchrotron which produces highly-brilliant, forward-directed and quasi-monochromatic synchrotron radiation. The name comes from the fact that these are devices which are inserted into a straight section of a synchrotron or a storage ring. in June 2006. E[acute accent]--The company commenced the limited launch of the AcrySof(R) Toric tor·ic adj. Of, relating to, or shaped like a torus or part of a torus. lens in the U.S. This lens is used to correct pre-existing astigmatism astigmatism (əstĭg`mətĭz'əm), type of faulty vision caused by a nonuniform curvature in the refractive surfaces—usually the cornea, less frequently the lens—of the eye. in cataract patients. E[acute accent]--The company commenced shipping the LADAR LADAR Laser Radar LADAR Laser Detection & Ranging 6000(TM) refractive laser in the U.S. following approval by the Food and Drug Administration in May, 2006. The FDA also granted the industry's broadest wavefront-guided hyperopic hy·per·o·pi·a n. An abnormal condition of the eye in which vision is better for distant objects than for near objects. It results from the eyeball being too short from front to back, causing images to be focused behind the retina. indication for Alcon's CustomCornea(R) procedure on both the LADAR6000(TM) and the LADARVision(R) 4000 system. E[acute accent]Financial Guidance E[acute accent]Alcon's current financial guidance for the full year 2006 and the factors impacting this guidance are provided below. E[acute accent]--Total sales are expected to be between $4,850 and $4,900 million. E[acute accent]--The company revised its guidance for sales of its AcrySof(R) ReSTOR(R) intraocular lenses to be at least $100 million. E[acute accent]--Diluted earnings per share are expected to be between $4.45 and $4.55, which includes the $0.32 per share positive impact of the litigation settlement in the second quarter and $0.17 per share negative impact of share-based compensation expense resulting from the adoption of SFAS 123(R). E[acute accent]Other Items E[acute accent]--The Centers for Medicare and Medicaid Services The Centers for Medicare and Medicaid Services (CMS), previously known as the Health Care Financing Administration (HCFA), is a federal agency within the United States Department of Health and Human Services (DHHS) that administers the Medicare program and (CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. ) designated the AcrySof(R) IQ intraocular lens (IOL) as belonging to the New Technology Intraocular Lens (NTIOL) classification of Reduced Spherical Aberration spherical aberration: see aberration, in optics. . This NTIOL designation was effective on May 19, 2006 and increases the Medicare payment Noun 1. medicare payment - a check reimbursing an aged person for the expenses of health care medicare check bank check, check, cheque - a written order directing a bank to pay money; "he paid all his bills by check" to ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery for cataract surgery Cataract Surgery Definition Cataract surgery is a procedure performed to remove a cloudy lens from the eye; usually an intraocular lens is implanted at the same time. Purpose The purpose of cataract surgery is to restore clear vision. by $50 when surgery is performed with an AcrySof(R) IQ intraocular lens. E[acute accent]--On May 19, 2006, Alcon paid a dividend of CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1.68 per share to shareholders of record as of May 8, 2006. The U.S. dollar equivalent of this dividend was $1.38 per share and resulted in a total payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. of $416.8 million to common shareholders. E[acute accent]--On May 2, 2006, Alcon's shareholders approved the cancellation of 100,000 Alcon common shares, which were repurchased during 2006. After the fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of certain formal Swiss law requirements, the cancellation became effective July 24, 2006. E[acute accent]Company Description E[acute accent]Alcon, Inc. is the world's leading eye care company, with sales of $4.37 billion in 2005. Alcon, which has been dedicated to the ophthalmic industry for more than 50 years, researches, develops, manufactures and markets pharmaceuticals, surgical equipment and devices, contact lens care solutions and other vision care products that treat diseases, disorders and other conditions of the eye. Alcon's majority shareholder is Nestle, S.A., the world's largest food company. All trademarks noted in this release are the property of Alcon, Inc., with the exception of Ciprodex(R), which is a registered trademark of property of Bayer AG Bayer AG German chemical and pharmaceutical company. Founded in 1863 by Friedrich Bayer (1825–1880), it now operates plants in more than 30 countries. Bayer has originated scores of pharmaceuticals, chemicals, and synthetic materials; it was the first developer and and licensed to Alcon. Vigamox(R) is licensed to Alcon from Bayer AG. E[acute accent](a) Arxxant(TM) is a trademark of Eli Lilly and Company
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (Unaudited)
(USD in millions, except share and per share data)
Three months ended Six months ended
June 30, June 30,
--------------------------- ---------------------------
2006 2005 2006 2005
------------- ------------- ------------- -------------
Sales $ 1,310.8 $ 1,172.0 $ 2,467.9 $ 2,242.5
Cost of goods
sold 325.3 287.7 613.5 576.3
------------- ------------- ------------- -------------
Gross profit 985.5 884.3 1,854.4 1,666.2
Selling,
general and
administrative 264.8 341.8 651.5 678.3
Research and
development 124.3 100.8 243.6 199.3
Amortization of
intangibles 20.6 21.9 41.1 42.0
------------- ------------- ------------- -------------
Operating
income 575.8 419.8 918.2 746.6
Other income
(expense):
Gain (loss)
from foreign
currency,
net (7.5) (0.6) (9.4) 1.8
Interest
income 20.2 12.5 39.0 20.6
Interest
expense (9.3) (9.4) (21.8) (18.1)
Other, net 1.3 0.3 8.6 -
------------- ------------- ------------- -------------
Earnings
before
income taxes 580.5 422.6 934.6 750.9
Income taxes 114.9 97.6 173.3 176.4
------------- ------------- ------------- -------------
Net earnings $ 465.6 $ 325.0 $ 761.3 $ 574.5
============= ============= ============= =============
Basic earnings
per common
share $ 1.52 $ 1.06 $ 2.49 $ 1.88
============= ============= ============= =============
Diluted
earnings per
common share $ 1.50 $ 1.04 $ 2.45 $ 1.85
============= ============= ============= =============
Basic weighted
average common
shares 306,070,731 306,520,335 306,278,027 305,729,518
Diluted
weighted
average common
shares 310,318,545 312,047,408 310,979,247 311,280,508
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)
Three months ended
June 30, Foreign %Change in
----------------- Currency Constant
2006 2005 %Change %Change Currency
-------- -------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $ 347.9 $ 311.0 11.9% - % 11.9%
Surgical 244.3 214.3 14.0 - 14.0
Consumer Eye Care 97.9 69.6 40.7 - 40.7
-------- --------
Total United States
Sales 690.1 594.9 16.0 - 16.0
-------- --------
International:
Pharmaceutical 211.6 191.6 10.4 0.6 9.8
Surgical 323.1 306.5 5.4 (0.3) 5.7
Consumer Eye Care 86.0 79.0 8.9 0.5 8.4
-------- --------
Total International
Sales 620.7 577.1 7.6 0.2 7.4
-------- --------
Total Global Sales $1,310.8 $1,172.0 11.8% - % 11.8%
======== ========
PRODUCT SALES
Infection/inflammation $ 198.4 $ 171.9 15.4%
Glaucoma 174.9 156.2 12.0
Allergy 137.0 135.4 1.2
Otic 72.1 60.1 20.0
Other
pharmaceuticals/rebates (22.9) (21.0) N/M
-------- --------
Total Pharmaceutical 559.5 502.6 11.3 0.2 % 11.1%
-------- --------
Intraocular lenses 205.5 176.1 16.7
Cataract/vitreoretinal 348.4 330.3 5.5
Refractive 13.5 14.4 (6.2)
-------- --------
Total Surgical 567.4 520.8 8.9 (0.2) 9.1
-------- --------
Contact lens
disinfectants 101.2 73.3 38.1
Artificial tears 50.4 43.5 15.9
Other 32.3 31.8 1.6
-------- --------
Total Consumer Eye Care 183.9 148.6 23.8 0.3 23.5
-------- --------
Total Global Sales $1,310.8 $1,172.0 11.8% - % 11.8%
======== ========
N/M - Not Meaningful
Note: Percent Change in Constant Currency calculates sales growth
without the impact of foreign exchange fluctuations. Management
believes constant currency sales growth is an important measure of the
company's operations because it provides investors with a clearer
picture of the core rate of sales growth due to changes in unit
volumes and local currency prices. Certain reclassifications have been
made to prior year amounts to conform with current year presentation.
ALCON, INC. AND SUBSIDIARIES
Global Sales
(USD in millions)
Six months ended
June 30, Foreign %Change in
----------------- Currency Constant
2006 2005 %Change %Change Currency
-------- -------- -------- -------- --------
GEOGRAPHIC SALES
United States:
Pharmaceutical $ 627.0 $ 563.6 11.2% - % 11.2%
Surgical 467.8 411.7 13.6 - 13.6
Consumer Eye Care 172.0 140.8 22.2 - 22.2
-------- --------
Total United States
Sales 1,266.8 1,116.1 13.5 - 13.5
-------- --------
International:
Pharmaceutical 407.6 371.0 9.9 (1.4) 11.3
Surgical 624.8 597.4 4.6 (2.9) 7.5
Consumer Eye Care 168.7 158.0 6.8 (0.9) 7.7
-------- --------
Total International
Sales 1,201.1 1,126.4 6.6 (2.2) 8.8
-------- --------
Total Global Sales $2,467.9 $2,242.5 10.1% (1.0)% 11.1%
======== ========
PRODUCT SALES
Infection/inflammation $ 374.2 $ 334.1 12.0%
Glaucoma 333.7 310.5 7.5
Allergy 244.0 222.1 9.9
Otic 118.5 103.1 14.9
Other
pharmaceuticals/rebates (35.8) (35.2) N/M
-------- --------
Total Pharmaceutical 1,034.6 934.6 10.7 (0.6)% 11.3%
-------- --------
Intraocular lenses 394.0 334.9 17.6
Cataract/vitreoretinal 671.3 642.7 4.4
Refractive 27.3 31.5 (13.3)
-------- --------
Total Surgical 1,092.6 1,009.1 8.3 (1.7) 10.0
-------- --------
Contact lens
disinfectants 178.9 149.1 20.0
Artificial tears 100.5 87.2 15.3
Other 61.3 62.5 (1.9)
-------- --------
Total Consumer Eye Care 340.7 298.8 14.0 (0.5) 14.5
-------- --------
Total Global Sales $2,467.9 $2,242.5 10.1% (1.0)% 11.1%
======== ========
N/M - Not Meaningful
Note: Percent Change in Constant Currency calculates sales growth
without the impact of foreign exchange fluctuations. Management
believes constant currency sales growth is an important measure of the
company's operations because it provides investors with a clearer
picture of the core rate of sales growth due to changes in unit
volumes and local currency prices. Certain reclassifications have been
made to prior year amounts to conform with current year presentation.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(USD in millions)
June 30, Dec. 31,
2006 2005
---------- ---------
Assets
Current assets:
Cash and cash equivalents $ 1,237.6 $1,457.2
Short term investments 402.7 377.7
Trade receivables, net 901.2 725.4
Inventories 450.6 427.2
Deferred income tax assets 127.0 131.5
Other current assets 162.9 149.0
---------- ---------
Total current assets 3,282.0 3,268.0
Long term investments 157.6 154.8
Property, plant and equipment, net 861.6 829.6
Intangible assets, net 252.8 293.7
Goodwill 552.1 550.0
Long term deferred income tax assets 110.7 77.5
Other assets 56.7 54.6
---------- ---------
Total assets $ 5,273.5 $5,228.2
========== =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 154.2 $ 156.0
Short term borrowings 845.9 1,021.5
Current maturities of long term debt 6.0 5.9
Other current liabilities 1,117.1 1,095.1
---------- ---------
Total current liabilities 2,123.2 2,278.5
---------- ---------
Long term debt, net of current maturities 50.9 56.0
Long term deferred income tax liabilities 16.0 15.8
Other long term liabilities 343.8 321.8
Contingencies
Shareholders' equity:
Common shares 43.6 43.4
Additional paid-in capital 930.9 806.3
Accumulated other comprehensive income 140.7 90.9
Retained earnings 2,626.1 2,282.3
Treasury shares, at cost (1,001.7) (666.8)
---------- ---------
Total shareholders' equity 2,739.6 2,556.1
---------- ---------
Total liabilities and shareholders'
equity $ 5,273.5 $5,228.2
========== =========
Note: Certain reclassifications have been made to prior year amounts
to conform with current year presentation.
ALCON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(USD in millions)
Six months ended
June 30,
--------------------
2006 2005
--------- ---------
Cash provided by operating activities:
Net cash from operating activities $ 747.7 $ 653.5
--------- ----------
Cash provided by (used in) investing activities:
Purchases of property, plant and equipment (83.4) (65.1)
Purchases of intangible assets - (2.8)
Net purchases of available-for-sale investments (26.4) (220.1)
Other 0.7 1.3
--------- ----------
Net cash from investing activities (109.1) (286.7)
--------- ---------
Cash provided by (used in) financing activities:
Net proceeds from (repayment of) short term
debt (186.4) 186.7
Repayment of long term debt (5.4) (4.8)
Dividends on common shares (416.8) (302.0)
Proceeds from exercise of stock options 50.1 119.8
Tax benefits from share-based payment
arrangements 49.0 -
Acquisition of treasury shares (361.5) (200.5)
--------- ----------
Net cash from financing activities (871.0) (200.8)
--------- ---------
Effect of exchange rates on cash and cash
equivalents 12.8 (48.8)
--------- ---------
Net increase (decrease) in cash and cash
equivalents (219.6) 117.2
Cash and cash equivalents, beginning of period 1,457.2 1,093.4
--------- ----------
Cash and cash equivalents, end of period $1,237.6 $1,210.6
========= ==========
Supplemental disclosure of cash flow information:
Cash paid during the period for the following:
Interest expense, net of amount capitalized $ 22.4 $ 18.8
========= =========
Income taxes $ 73.3 $ 74.6
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E[acute accent]Caution Concerning Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. E[acute accent]This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements principally relate to statements regarding the expectations of our management with respect to the future performance of various aspects of our business. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by our forward-looking statements. Words such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "hope," "intend," "estimate," "project," "predict," "potential" and similar expressions are intended to identify forward-looking statements. These statements reflect the views of our management as of the date of this press release with respect to future events and are based on assumptions and subject to risks and uncertainties and are not intended to give any assurance as to future results. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Factors that might cause future results to differ include, but are not limited to, the following: the development of commercially viable products may take longer and cost more than expected; changes in reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. procedures by third party payers may affect our sales and profits; competition may lead to worse than expected financial condition and results of operations; currency exchange rate fluctuations may negatively affect our financial condition and results of operations; pending or future litigation may negatively impact our financial condition and results of operations; litigation settlements may adversely impact our financial condition; the occurrence of excessive property and casualty, general liability or business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. losses, for which we are self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance , may adversely impact our financial condition; product recalls or withdrawals may negatively impact our financial condition or results of operations; government regulation or legislation may negatively impact our financial condition or results of operations; changes in tax laws or regulations in the jurisdictions in which we and our subsidiaries are subject to taxation may adversely impact our financial performance; supply and manufacturing disruptions could negatively impact our financial condition or results of operations. You should read this press release with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except to the extent required under the federal securities laws and the rules and regulations promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. by the Securities and Exchange Commission, we undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or otherwise. |
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