IMS reports 3% rise in Q4 sales, 6% decline for 2009
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US— IMS Health has reported a 3% rise in revenue for the final quarter of 2009, in what is likely to be its last results announcement before becoming a privately-held company.
The healthcare data giant said sales increased to $599.2m for the three months ended 31 December. Operating income was down by 16% to $106.3m while net profit fell 27% to $71.5m
IMS said income was negatively affected by restructuring charges, costs associated with its planned takeover by investment groups TPG Capital and the CCP Investment Board, and other expense items totalling $27.7m. Adjusted figures show net profit up almost 5% to $95.1m.
Last summer, the firm announced a year-long plan to cut 850 jobs globally alongside other cost-reduction measures off the back of revenue falls in Q1 and Q2. Third-quarter sales also declined, but less severly than in previous quarters.
IMS chief executive David Carlucci (pictured) said: “IMS finished the year with an improved fourth-quarter performance, reflecting solid sequential revenue growth and better demand in the second half of the year. Our cost reduction plans remain on track.”
Full-year revenue was down 6% to $2.19bn, while net income fell 17% to $258.5m.
IMS shareholders voted earlier this week in favour of TPG and CCP’s $5bn takeover of the company. Save for a few remaining conditions, the deal is expected to complete before the end of the first quarter.
