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Alcon's Third Quarter Sales Rise 11.0 Percent

HUNENBERG, Switzerland--(BUSINESS WIRE)--Oct 24, 2007 - Alcon, Inc. (NYSE:ACL) reported global sales of $1,335.7 million for the third quarter of 2007, an increase of 11.0 percent over global sales for the third quarter of 2006, or 7.9 percent on a constant currency basis. Net earnings for the third quarter of 2007 increased 78.9 percent to $415.3 million, or $1.38 per share on a diluted basis, compared to $232.1 million, or $0.76 per diluted share for the third quarter of 2006. Net earnings in the third quarter of 2007 included charges for a workforce reduction in the company's refractive laser business associated with the planned acquisition and integration of WaveLight AG. Net earnings in the third quarter of 2006 included an impairment charge related to certain assets of the company's refractive laser business. The after-tax impact of these charges was $3.4 million, or $0.01 per diluted share in the third quarter of 2007 and $92.0 million, or $0.30 per diluted share in the third quarter of 2006. Excluding these charges, adjusted net earnings in the third quarter of 2007 were $418.7 million, or $1.39 per diluted share and in the third quarter of 2006 were $324.1 million, or $1.06 per share on a diluted basis. As a result, adjusted net earnings in the third quarter of 2007 grew 29.2 percent compared to adjusted net earnings in the third quarter of 2006, while adjusted earnings per diluted share rose 31.1 percent. Reconciliations of reported and adjusted results are provided in tables later in this press release.

"Significant growth in our international business has delivered another quarter of improved financial performance," said Cary Rayment, Alcon's chairman, president and chief executive officer. "Alcon's strategy of building brands globally and directly supporting eye care professionals worldwide through our global infrastructure continues to serve as a solid foundation for growth."

Third Quarter Sales Highlights

Highlights of sales for the third quarter of 2007 are provided below. Unless otherwise noted, all comparisons are between the third quarter of 2007 and the third quarter of 2006.

-- Pharmaceutical sales grew 10.2 percent to $547.3 million, or 7.5 percent on a constant currency basis. With the exception of the otic category, all major product sectors posted significant growth. Sales of glaucoma products increased 19.0 percent, led by strong global growth in sales of TRAVATAN(R) products and Azopt(R) ophthalmic suspension. Sales of TRAVATAN(R) products, including TRAVATAN(R), TRAVATAN(R)Z(TM) and DuoTrav(TM) ophthalmic solutions, rose 30.6 percent. Sales of infection/inflammation products rose 9.2 percent, as global growth of Vigamox(R) ophthalmic solution and NEVANAC(R) ophthalmic suspension, as well as international growth of TobraDex(R) ophthalmic suspension contributed to the increase. Sales of allergy products rose 14.3 percent due to international growth of Patanol(R) ophthalmic solution and market share gains of Pataday(TM) ophthalmic solution in the United States. Despite gains in market share, a weak otic market in the United States was primarily responsible for a decline of 13.1% in sales of the company's otic products. U.S. sales were also negatively affected because of a shift in sales to Medicare Part D and managed care programs resulting in an increase in rebates on such sales.

-- Surgical sales rose 10.8 percent to $585.9 million, or 7.5 percent on a constant currency basis. Sales of intraocular lenses increased 12.3 percent to $215.4 million, with sales of premium intraocular lenses rising 35.1 percent. Sales of premium intraocular lenses for the correction of astigmatism and presbyopia were supported by steady penetration of the AcrySof(R) Toric intraocular lens and global growth of the AcrySof(R) ReSTOR(R) intraocular lens. AcrySof(R) ReSTOR(R) continued to grow in international markets as well as in the United States where we began full distribution of the AcrySof(R) ReSTOR(R) Aspheric intraocular lens in the third quarter of 2007. Sales of cataract and vitreoretinal products rose 11.5 percent, supported by double digit growth in sales of the company's Infiniti(R) vision system with the OZil(TM) torsional hand piece, viscoelastics, cataract procedure packs and vitreoretinal disposable products. Vitreoretinal sales growth of 12.2 percent was supported by the continuing transition to higher value 25-gauge and 23-gauge technologies. Refractive revenue declined 30.3 percent due primarily to a decrease in per procedure technology fees in the United States.

-- Consumer eye care sales increased 13.5 percent to $202.5 million, or 10.4 percent on a constant currency basis. Sales of contact lens disinfectants grew by 17.2 percent as OPTI-FREE (R) disinfecting solutions continued to benefit from market share gained as a result of the global recall of competitors' solutions in 2006 and 2007. The global expansion of OPTI-FREE(R) RepleniSH(R) contributed to growth, with this latest introduction into the market now accounting for more than 35% percent of Alcon's global contact lens disinfectant sales. Sales of artificial tears increased 11.7 percent, primarily due to sales growth of Systane(R) lubricant eye drops, especially in international markets.

Third Quarter Earnings Details

Highlights of earnings for the third quarter of 2007 are provided below. Unless otherwise noted, all comparisons are between reported results for the third quarter of 2007 and the third quarter of 2006. Comparisons are also made between non-GAAP adjusted results for the third quarter of 2007, excluding the reduction in force related to the impending acquisition of WaveLight, AG, and the third quarter of 2006, excluding the refractive impairment charge. A reconciliation of reported results to non-GAAP results is provided in tables at the back of this release.

-- Gross profit margin increased 0.7 percentage points to 75.7 percent of sales. However, on an adjusted basis, gross profit margin would have declined 0.6 percent from 76.5 percent in 2006 to 75.9 percent in 2007, primarily the result of the negative impact of geographic mix of product sales and increased provisions for scrap and obsolescence.

-- Selling, general and administrative expenses as a percent of sales increased 0.2 percentage points to 30.2 percent due to the timing of additions to the company's global sales force to support recent product launches and due to higher distribution costs.

-- Research and development expenses as a percent of sales declined 1.3 percentage points to 9.8 percent of sales, primarily due to an upfront payment for a licensing agreement concluded in the third quarter of 2006. Adjusted for the reduction in force, research and development expenses would have been 9.6 percent of sales.

-- Operating income improved 78.6 percent to $466.1 million, or 34.9 percent of sales. On an adjusted basis, operating profit would have risen 16.2 percent in the quarter, with adjusted operating profit margin rising 1.6 percentage points compared to 2006. The increase in operating profit is primarily the result of sales growing faster than total operating expenses, along with a decrease in intangible amortization.

-- The company's effective tax rate declined due to a $17.1 million net effect of a reduction in global tax reserves related to audit settlements and advance pricing agreement negotiations, offset by a provision for withholding tax on an intercompany dividend.

-- Reported net earnings increased 78.9 percent, while adjusted net earnings would have risen 29.2 percent due to sales growth, operating profit margin improvements and a lower effective tax rate.

New Product and R&D Pipeline Update

Summarized below are updates on selected new products and significant research and development activities.

-- The Japanese Ministry of Health, Labor and Welfare (MHLW) granted approval of TRAVATANZ(TM) and established a price that is 3.2 percent higher than the current prostaglandin market leader. With pricing set, Alcon Japan will commence with launch this month.

-- Alcon Japan filed two applications with the MHLW in the third quarter: DisCoVisc(R) ophthalmic viscosurgical device and the AcrySof(R) ReSTOR(R) intraocular lens with a natural chromophore and aspheric optics.

-- The AcrySof(R) ReSTOR(R) +3.0 Add intraocular lens received a CE-mark in Europe at the end of August and the company initiated clinical studies of this lens in the United States.

-- As previously announced, an amendment to the new drug application for PATANASE(R) nasal spray was filed with the United States Food and Drug Administration (FDA).

-- NEVANAC(R) ophthalmic suspension received a positive recommendation for approval from the European Medicines Agency, with final action expected to occur in December, 2007.

-- Alcon reached agreement with River Plate Biotechnology, Inc. (a subsidiary of Lantibio, Inc.) and TRB Chemedica S.A. for a license to market, in the United States, a treatment of dry eye based on hyaluronic acid. The product candidate is currently in Phase III clinical studies.

Financial Guidance

Alcon's current financial guidance for the full year 2007 and the factors impacting this guidance are provided below.

-- Total sales are expected to be between $5,510 and $5,540 million.

-- Adjusted diluted earnings per share are expected to be between $5.30 and $5.35.

-- Full year adjusted earnings guidance excludes charges associated with the impairment of Alcon's refractive assets in the first quarter of 2007 and costs associated with Alcon's acquisition of WaveLight AG and the integration of the two companies' refractive businesses.

Other Items

-- As previously announced, Alcon has acquired or has contractual commitments for 77.4% of WaveLight AG's approximately 6.6 million issued and outstanding shares as of the end of the two week acceptance period. The company has received approvals from the competition authorities in Germany, Brazil, Spain and Austria, and is awaiting clearances in China and Cyprus prior to closing the transaction.

-- The company received formal notice that a second generic company, Barr Laboratories, Inc., had filed an abbreviated new drug application (ANDA) challenging the U.S. patents covering Patanol(R) ophthalmic solution. Unlike an existing ANDA filed by Apotex that challenges only one patent expiring in 2015, Barr's filing also challenges the patent expiring in 2010 owned by Alcon's raw material supplier Kyowa Hakko Kogyo Co. Ltd that covers olopatadine, the active ingredient in Patanol(R). Alcon believes that the intellectual property associated with Patanol(R) is sound and has filed a patent infringement suit against Barr.

-- As previously announced, on September 7, 2007, Alcon's board of directors approved the purchase of up to an additional 2 million shares of the company's outstanding common stock relative to the company's share repurchase program.

Company Description

Alcon, Inc. is the world's leading eye care company, with sales of approximately $4.9 billion in 2006. Alcon, which has been dedicated to the ophthalmic industry for 60 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. Moxifloxacin, the active ingredient in Vigamox(R), is licensed to Alcon from Bayer AG. -0-

                     ALCON, INC. AND SUBSIDIARIES

      Condensed Consolidated Statements of Earnings (Unaudited)

          (USD in millions, except share and per share data)


                   Three months ended           Nine months ended

                        Sept 30,                    Sept 30,

               --------------------------- ---------------------------

                   2007          2006          2007          2006

               ------------- ------------- ------------- -------------


Sales          $    1,335.7  $    1,203.8  $    4,129.9  $    3,671.7

Cost of goods

 sold                 324.6         301.4       1,026.9         914.9

               ------------- ------------- ------------- -------------


  Gross profit      1,011.1         902.4       3,103.0       2,756.8


Selling,

 general and

 administrative       403.8         361.1       1,252.4       1,012.6

Research and

 development          130.9         134.0         404.3         377.6

Amortization of

 intangibles           10.3         146.3          40.6         187.4

               ------------- ------------- ------------- -------------


  Operating

   income             466.1         261.0       1,405.7       1,179.2


Other income

 (expense):

  Gain (loss)

   from foreign

   currency,

   net                  3.6          (0.7)          8.6         (10.1)

  Interest

   income              11.0          16.9          45.8          55.9

  Interest

   expense             (9.5)        (10.8)        (30.7)        (32.6)

  Other, net            1.9           4.4          20.2          13.0

               ------------- ------------- ------------- -------------


  Earnings

   before

   income taxes       473.1         270.8       1,449.6       1,205.4


Income taxes           57.8          38.7         239.7         212.0

               ------------- ------------- ------------- -------------


  Net earnings $      415.3  $      232.1  $    1,209.9  $      993.4

               ============= ============= ============= =============



Basic earnings

 per common

 share         $       1.39  $        .77  $       4.05  $       3.26

               ============= ============= ============= =============


Diluted

 earnings per

 common share  $       1.38  $        .76  $       4.00  $       3.21

               ============= ============= ============= =============


Basic weighted

 average common

 shares         297,829,693   302,626,095   298,601,255   305,047,340

Diluted

 weighted

 average common

 shares         301,516,463   306,869,441   302,457,862   309,594,257

-0-
                     ALCON, INC. AND SUBSIDIARIES

                             Global Sales

                          (USD in millions)


                        Three months ended           Foreign  %Change

                                                               in

                             Sept 30,                Currency Constant

                        -------------------

                          2007      2006    %Change  %Change  Currency

                         --------  -------- -------- -------- --------

GEOGRAPHIC SALES

United States:

Pharmaceutical          $  299.6  $  288.3      3.9%       -%     3.9%

Surgical                   255.4     239.0      6.9        -      6.9

Consumer Eye Care           99.5      91.4      8.9        -      8.9

                         --------  --------


   Total United States

    Sales                  654.5     618.7      5.8        -      5.8

                         --------  --------


International:

Pharmaceutical             247.7     208.4     18.9      6.5     12.4

Surgical                   330.5     289.7     14.1      6.1      8.0

Consumer Eye Care          103.0      87.0     18.4      6.3     12.1

                         --------  --------


   Total International

    Sales                  681.2     585.1     16.4      6.2     10.2

                         --------  --------


Total Global Sales      $1,335.7  $1,203.8     11.0%     3.1%     7.9%

                         ========  ========


PRODUCT SALES

Infection/inflammation  $  191.1  $  175.0      9.2%

Glaucoma                   209.0     175.7     19.0

Allergy                     83.3      72.9     14.3

Otic                        67.6      77.8    (13.1)

Other

 pharmaceuticals/rebates    (3.7)     (4.7)     N/M

                         --------  --------


   Total Pharmaceutical    547.3     496.7     10.2      2.7%     7.5%

                         --------  --------


Intraocular lenses         215.4     191.8     12.3

Cataract/vitreoretinal     362.0     324.7     11.5

Refractive                   8.5      12.2    (30.3)

                         --------  --------


   Total Surgical          585.9     528.7     10.8      3.3      7.5

                         --------  --------


Contact lens

 disinfectants             116.6      99.5     17.2

Artificial tears            57.2      51.2     11.7

Other                       28.7      27.7      3.6

                         --------  --------


   Total Consumer Eye

    Care                   202.5     178.4     13.5      3.1     10.4

                         --------  --------


   Total Global Sales   $1,335.7  $1,203.8     11.0%     3.1%     7.9%

                         ========  ========

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. This measure is considered a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. Certain reclassifications have been made to prior year amounts to conform with current year presentation. -0-

                     ALCON, INC. AND SUBSIDIARIES

                             Global Sales

                          (USD in millions)


                         Nine months ended           Foreign  %Change

                                                               in

                             Sept 30,                Currency Constant

                        -------------------

                          2007      2006    %Change  %Change  Currency

                         --------  -------- -------- -------- --------

GEOGRAPHIC SALES

United States:

Pharmaceutical          $  982.7  $  915.3      7.4%       -%     7.4%

Surgical                   746.7     706.8      5.6        -      5.6

Consumer Eye Care          295.9     263.4     12.3        -     12.3

                         --------  --------


   Total United States

    Sales                2,025.3   1,885.5      7.4        -      7.4

                         --------  --------


International:

Pharmaceutical             752.9     616.0     22.2      5.7     16.5

Surgical                 1,052.3     914.5     15.1      5.1     10.0

Consumer Eye Care          299.4     255.7     17.1      4.9     12.2

                         --------  --------


   Total International

    Sales                2,104.6   1,786.2     17.8      5.2     12.6

                         --------  --------


Total Global Sales      $4,129.9  $3,671.7     12.5%     2.6%     9.9%

                         ========  ========


PRODUCT SALES

Infection/inflammation  $  602.2  $  547.6     10.0%

Glaucoma                   593.6     509.4     16.5

Allergy                    355.7     316.9     12.2

Otic                       206.1     197.6      4.3

Other

 pharmaceuticals/rebates   (22.0)    (40.2)     N/M

                         --------  --------


   Total Pharmaceutical  1,735.6   1,531.3     13.3      2.2%    11.1%

                         --------  --------


Intraocular lenses         660.1     585.8     12.7

Cataract/vitreoretinal   1,108.7     996.0     11.3

Refractive                  30.2      39.5    (23.5)

                         --------  --------


   Total Surgical        1,799.0   1,621.3     11.0      2.9      8.1

                         --------  --------


Contact lens

 disinfectants             335.5     278.4     20.5

Artificial tears           172.1     151.7     13.4

Other                       87.7      89.0     (1.5)

                         --------  --------


   Total Consumer Eye

    Care                   595.3     519.1     14.7      2.4     12.3

                         --------  --------


   Total Global Sales   $4,129.9  $3,671.7     12.5%     2.6%     9.9%

                         ========  ========

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. This measure is considered a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. Certain reclassifications have been made to prior year amounts to conform with current year presentation. -0-

                     ALCON, INC. AND SUBSIDIARIES

          Condensed Consolidated Balance Sheets (Unaudited)

                          (USD in millions)


                                                  Sept 30,   Dec. 31,

                                                    2007       2006

                                                 ---------- ----------

                     Assets

Current assets:

  Cash and cash equivalents                      $   826.9  $ 1,489.2

  Short term investments                             798.9      321.0

  Trade receivables, net                           1,042.1      912.8

  Inventories                                        534.7      473.8

  Deferred income tax assets                         135.7      122.5

  Other current assets                               162.7      142.8

                                                 ---------- ----------


    Total current assets                           3,501.0    3,462.1


Long term investments                                 80.0       91.1

Property, plant and equipment, net                   963.5      920.7

Intangible assets, net                                54.9       95.2

Goodwill                                             555.6      553.2

Long term deferred income tax assets                 273.3      235.7

Other assets                                          78.1       69.3

                                                 ---------- ----------


    Total assets                                 $ 5,506.4  $ 5,427.3

                                                 ========== ==========


  Liabilities and Shareholders' Equity


Current liabilities:

  Accounts payable                               $   166.1  $   168.9

  Short term borrowings                              799.5      926.5

  Current maturities of long term debt                 1.2        5.8

  Other current liabilities                          938.0      899.9

                                                 ---------- ----------


    Total current liabilities                      1,904.8    2,001.1

                                                 ---------- ----------


Long term debt, net of current maturities             50.1       49.0

Long term deferred income tax liabilities             10.7       10.1

Other long term liabilities                          493.6      453.5

Contingencies


Shareholders' equity:

  Common shares                                       43.1       43.9

  Additional paid-in capital                       1,260.1    1,064.5

  Accumulated other comprehensive income             184.6      127.3

  Retained earnings                                3,016.0    3,201.9

  Treasury shares, at cost                        (1,456.6)  (1,524.0)

                                                 ---------- ----------


    Total shareholders' equity                     3,047.2    2,913.6

                                                 ---------- ----------


    Total liabilities and shareholders' equity   $ 5,506.4  $ 5,427.3

                                                 ========== ==========

-0-
                     ALCON, INC. AND SUBSIDIARIES

     Condensed Consolidated Statements of Cash Flows (Unaudited)

                          (USD in millions)


                                                  Nine months ended

                                                     September 30,

                                                  -------------------

                                                     2007      2006

                                                  --------- ---------


Cash provided by (used in) operating activities:

   Net earnings                                   $ 1,209.9 $   993.4

   Adjustments to reconcile net earnings to cash

    provided from operating activities:

       Depreciation                                   119.5     122.7

       Amortization of intangibles                     40.6     187.4

       Share-based payments                            72.6      65.8

       Tax benefit from share-based compensation       13.4        --

       Deferred income taxes                          (45.2)   (111.4)

       Loss (gain) on sale of assets                  (12.0)     (0.2)

       Provisions for losses                             --    (119.0)

   Changes in operating assets and liabilities:

       Trading securities                            (539.3)    (41.9)

       Trade receivables                              (88.9)   (150.7)

       Inventories                                    (18.5)    (18.8)

       Other assets                                   (23.3)     (7.1)

       Accounts payable and other current

        liabilities                                   150.2     (33.1)

       Other long term liabilities                    (64.3)     27.8

                                                  --------- ---------


  Net cash from operating activities                  814.7     914.9

                                                  --------- ---------


Cash provided by (used in) investing activities:

  Purchases of property, plant and equipment         (139.7)   (145.1)

  Purchases of available-for-sale investments         (69.6)   (328.3)

  Proceeds from sales and maturities of available-

   for-sale investments                               143.9     377.5

  Other                                                 2.1       1.3

                                                  --------- ---------


  Net cash from investing activities                  (63.3)    (94.6)

                                                  --------- ---------


Cash provided by (used in) financing activities:

  Net proceeds from (repayment of) short term debt   (165.5)   (133.1)

  Proceeds from issuance of long term debt              1.1        --

  Repayment of long term debt                          (5.8)     (5.8)

  Dividends on common shares                         (612.8)   (416.8)

  Acquisition of treasury shares                     (875.9)   (728.4)

  Proceeds from exercise of stock options             158.3      95.0

  Tax benefits from share-based payment

   arrangements                                        80.5      80.5

                                                  --------- ---------


  Net cash from financing activities               (1,420.1) (1,108.6)

                                                  --------- ---------


Effect of exchange rates on cash and cash

 equivalents                                            6.4       7.9

                                                  --------- ---------


Net increase (decrease) in cash and cash

 equivalents                                         (662.3)   (280.4)

Cash and cash equivalents, beginning of period      1,489.2   1,457.2

                                                  --------- ---------


Cash and cash equivalents, end of period          $   826.9 $ 1,176.8

                                                  ========= =========

-0-
                     ALCON, INC. AND SUBSIDIARIES

          Reconciliation of Non-GAAP Disclosures (Unaudited)

               (USD in millions, except per share data)


                                        Three months ended September

                                                 30, 2007 (1)

                                       -------------------------------

                                                   Non-GAAP

                                                  Adjustments

                                                 ------------

                                                  Refractive

                                                   Workforce  Non-GAAP

                                        Reported  Reduction   Adjusted

                                       --------- ----------- ---------


Sales                                  $1,335.7  $       --  $1,335.7

Cost of goods sold                        324.6        (3.2)    321.4

                                       --------- ----------- ---------


  Gross profit                          1,011.1         3.2   1,014.3


Selling, general and administrative       403.8          --     403.8

Research and development                  130.9        (2.1)    128.8

Amortization of intangibles                10.3          --      10.3

                                       --------- ----------- ---------


  Operating income                        466.1         5.3     471.4


Other income (expense):

  Gain (loss) from foreign currency,

   net                                      3.6          --       3.6

  Interest income                          11.0          --      11.0

  Interest expense                         (9.5)         --      (9.5)

  Other, net                                1.9          --       1.9

                                       --------- ----------- ---------


  Earnings before income taxes            473.1         5.3     478.4


Income taxes                               57.8         1.9      59.7

                                       --------- ----------- ---------


  Net earnings                         $  415.3  $      3.4  $  418.7

                                       ========= =========== =========


Diluted earnings per common share      $   1.38  $     0.01  $   1.39

                                       ========= =========== =========


Selected ratios as percent of sales

---------------------------------------

Gross Profit                               75.7%                 75.9%

Operating income                           34.9%                 35.3%


Other selected financial ratios

---------------------------------------

% Operating income growth                  78.6%                 16.2%

% Net earnings growth                      78.9%                 29.2%

(1) The items above adjusted for charges related to the reduction of the company's refractive workforce are considered non-GAAP financial measures as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. Alcon presents these non-GAAP measures to improve the comparability and consistency of financial results of Alcon's core business activities and to enhance the overall understanding of Alcon's performance and future prospects. -0-

                     ALCON, INC. AND SUBSIDIARIES

          Reconciliation of Non-GAAP Disclosures (Unaudited)

               (USD in millions, except per share data)


                                        Three months ended September

                                                 30, 2006 (1)

                                       -------------------------------

                                                   Non-GAAP

                                                  Adjustments

                                                 ------------

                                                  Impairment  Non-GAAP

                                        Reported    Charges   Adjusted

                                       --------- ----------- ---------


Sales                                  $1,203.8  $       --  $1,203.8

Cost of goods sold                        301.4       (19.1)    282.3

                                       --------- ----------- ---------


  Gross profit                            902.4        19.1     921.5


Selling, general and administrative       361.1          --     361.1

Research and development                  134.0          --     134.0

Amortization of intangibles               146.3      (125.7)     20.6

                                       --------- ----------- ---------


  Operating income                        261.0       144.8     405.8


Other income (expense):

  Gain (loss) from foreign currency,

   net                                     (0.7)         --      (0.7)

  Interest income                          16.9          --      16.9

  Interest expense                        (10.8)         --     (10.8)

  Other, net                                4.4          --       4.4

                                       --------- ----------- ---------


  Earnings before income taxes            270.8       144.8     415.6


Income taxes                               38.7        52.8      91.5

                                       --------- ----------- ---------


  Net earnings                         $  232.1  $     92.0  $  324.1

                                       ========= =========== =========


Diluted earnings per common share      $   0.76  $     0.30  $   1.06

                                       ========= =========== =========


Selected ratios as percent of sales

---------------------------------------

Gross Profit                               75.0%                 76.5%

Operating income                           21.7%                 33.7%

(1) The items above adjusted for charges related to the impairment of certain refractive assets are considered non-GAAP financial measures as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. Alcon presents these non-GAAP measures to improve the comparability and consistency of financial results of Alcon's core business activities and to enhance the overall understanding of Alcon's performance and future prospects.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act 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 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 losses, for which we are self-insured, 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 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 or otherwise.

Contact

Alcon, Inc.
Doug MacHatton, 817-551-8974
Vice President, Investor Relations and Strategic
Corporate Communications
doug.machatton@alconlabs.com
or
Matthew Head, 817-551-8550
Director, Investor Relations
matthew.head@alconlabs.com
www.alcon.com

Posted: October 2007


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