Earnings/revenue and outlook in-line but what is this charge?
Did they previously announced this Resolor charge of 198M? I only recall hearing about the 58M charge for the settlement with US. What gives? Anyone buying this dip?
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Non GAAP diluted earnings per American Depository Share ("ADS") increased 14% to $6.10 (2011: $5.34), due to higher Non GAAP operating income and a lower effective tax rate on Non GAAP income of 18% (2011: 22%).
On a US GAAP basis: Operating income in 2012 was down 14% to $949 million (2011: $1,109 million) primarily resulting from charges to impair intangible assets for RESOLOR® in the EU ($198 million) in 2012. The impairments were due to lower actual and projected performance for the product given the increasingly challenging European reimbursement environment. Operating income in 2012 was also impacted by a charge of $58 million in relation to the agreement in principle with the US Government to resolve a previously disclosed civil investigation (see page 6 for further details).
As we look forward to the year ahead, we expect our financial results to show further growth in line with current consensus earnings expectations for 2013(1).
Based on the most recent consensus estimates compiled by Consensus Forecast Ltd, as of the date of this press release, of $6.72 Non GAAP diluted earnings per ADS for the year ended 31 December 2013, available on Shire's website