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Hospira Inc. Message Board

  • go_east_ern go_east_ern Nov 6, 2006 11:13 AM Flag

    HSP is HSP

    HSP is not a company that is expected to perform long term. The reason HSP was created is a way for ABT to spin off and dump employees not having to pay thier retirement. The money they will save on not paying for retirements exceeds the earnings of HSP over the long term. HSP is also a seperate company that can legally purchase product lines from ABT allowing ABT to RIF employees legally before maturation of retirement requirements.
    The savings of the retirement payouts set up HSP with cash flow and inventory substantial enought to surpass the legally statue of limitations. HMMMM that is a coincidence!!
    If you understand this all the other information is just pom pom waving. Pick up a couple of bucks on the way do not expect any more.

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    • There seems little doubt about that the ABT-HSP deals have cost HSP employees (former ABT employees) the most, as you mentioned.

      I wanted to believe, however, that is the result - not the cause - of the spinoff in 2004, because ABT was not known for being ruthless, so �low profit margins� could not be the real reason I think. Besides, the drug sector was not impacted by the last recession which could trigger a restructuring of such a scale.

      There got to be some pretty big issues that made ABT decide to spin off this part of its decades-long operations, I guess. Maybe because of the same aged issues, they drove HSP to where it is today, after failing ABT and causing the spinoff. Until they face and fix the real problems, any new additions to HSP might help them out a little but not for very long possibly.

    • HSP is not even performing short term anymore based on the past week. Coming up to earnings, this is not a good sign.