FORM 10-Q

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C.  20549

 

 

HOSPIRA, INC.

 

 

275 N. Field Drive
Lake Forest, Illinois 60045

 

Telephone:  (224) 212-2000

 

Indicate by check mark whether the registrant (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of l934 during the preceding l2 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ý.   No  o.

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).     Yes  o. No  ý.

 

As of July 31, 2004, Hospira, Inc. had outstanding 156,052,411 common shares, par value $0.01 per share.

 

 

Table of Contents

 

Hospira, Inc.

 

Quarterly Report on Form 10-Q

 

Index

 

	Part I – Financial Information
Item 1. Financial Statements
Condensed Consolidated Statements of Income (Unaudited) – Three and Six Months Ended June 30, 2004 and June 30, 2003		3
Condensed Consolidated Statements of Cash Flows (Unaudited) – Six Months Ended June 30, 2004 and June 30, 2003		4
Condensed Consolidated Balance Sheets (Unaudited) – June 30, 2004 and December 31, 2003		5
Condensed Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) – Six Months Ended June 30, 2004		6
Notes to Condensed Consolidated Financial Statements (Unaudited)		7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 3. Quantitative and Qualitative Disclosures about Market Risk		24
Item 4. Controls and Procedures		24
	Part II – Other Information
Item 1. Legal Proceedings		25
Item 4. Submission of Matters to a Vote of Security Holders		26
Item 6. Exhibits and Reports on Form 8-K		27

 

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Table of Contents

 

PART  I.  FINANCIAL INFORMATION

 

Item 1.  Financial Statements

 

Hospira, Inc.

 

Condensed Consolidated Statements of Income

 

(Unaudited)

 

(dollars and shares in thousands, except for per share amounts)

 

		Three Months Ended June 30						Six Months Ended June 30
		2004			2003			2004			2003
Net sales		$	617,367		$	597,376		$	1,192,565		$	1,168,898
Net sales to Abbott Laboratories		50,025			51,935			96,045			113,524
Total Net Sales		667,392			649,311			1,288,610			1,282,422
Cost of products sold		456,765			474,409			909,644			933,822
Gross Profit		210,627			174,902			378,966			348,600
Research and development		28,087			23,933			52,533			43,298
Selling, general and administrative		66,931			54,247			124,441			111,009
Curtailment of post-retirement medical and dental benefits		(64,636		)	—			(64,636		)	—
Income From Operations		180,245			96,722			266,628			194,293
Interest expense		2,684			—			2,684			—
Other expense, net		526			978			1,394			3,343
Income Before Income Taxes		177,035			95,744			262,550			190,950
Income tax expense		51,265			28,244			71,789			56,330
Net Income		$	125,770		$	67,500		$	190,761		$	134,620
Earnings Per Common Share
Basic		$	0.80		$	0.43		$	1.22		$	0.86
Diluted		$	0.80		$	0.43		$	1.22		$	0.86
Weighted Average Common Shares Outstanding
Basic		156,048			156,043			156,048			156,043
Diluted		156,551			156,043			156,551			156,043

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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Table of Contents

 

Hospira, Inc.

 

Condensed Consolidated Statements of Cash Flows

 

(Unaudited)

 

(dollars in thousands)

 

		Six Months Ended June 30
		2004			2003
Cash Flow From (Used in) Operating Activities:
Net income		$