Wyeth says EPS up slightly to $0.82 in first quarter

By Angela McDaniels

Seattle, April 21 - Wyeth said its net revenue increased 6% to $4.84 billion for the 2006 first quarter ended March 31 from $4.58 billion for the first quarter of 2005.

Net income increased 4% to $1.12 billion, or $0.82 per diluted share, for the first quarter from $1.08 billion, or $0.82 per diluted share, for the first quarter of 2005.

Wyeth said the first-quarter results included stock option expense, which reduced diluted earnings by $0.03 per share. Diluted earnings for the first quarter of 2005 would have been lower by $0.05 had the company expensed stock options.

The company attributed the increase in net income to higher net revenue, lower cost of goods sold, lower cost of selling, general and administrative expenses and lower interest expense, offset in part by higher research and development spending and lower other income.

The first-quarter results also include $35.1 million of charges related to the company's productivity initiatives launched in 2005, including the closing of certain manufacturing facilities.

Wyeth said it expects asset impairment, accelerated depreciation, personnel costs and other exit costs, as well as implementation costs associated with these initiatives, to continue for several years and reach about $750 million to $1 billion.

Wyeth is a Madison, N.J.-based pharmaceutical company.

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