July 30, 2004

BMS' Q2 NET INCOME DOWN; 2005, 2006 GUIDANCE LOWERED

Bristol-Myers Squibb Co. reported a 42 percent drop in net income for the second quarter of 2004 and lowered its guidance, primarily due to legal costs and patent expirations.

In the latest quarter, BMS posted net income of $527 million, or $0.27 per diluted share, compared with $902 million, or $0.46 per share, in the year-ago period.

Quarterly sales totaled $5.43 billion, a 6 percent increase from $5.13 billion in 2003.

The company also revised its guidance, stating that earnings per share for 2005 and 2006 will be "somewhat below" the existing Thomson First Call consensus estimates of $1.49 for 2005 and $1.46 for 2006. BMS also revised 2004 full-year earnings-per-share guidance to a range of between $1.43 and $1.48, down from the original forecast of $1.49 to $1.54 per share.

Recent patent expirations for BMS' diabetes pharma brands Glucovance (glyburide and metformin hydrochloride) and Glucophage (metformin hydrochloride) extended-release resulted in a 69 percent drop in sales for the two drugs, Reuters reported.

BMS also said the quarter included $455 million in charges related to allegations that the company had artificially inflated sales and earnings from 1999 through 2001.

Shares of BMS closed at $22.57, down $1.00, or 4.2 percent, in heavy trading on the New York Stock Exchange.