VALLEY FORGE, Pa. (AP) -- Prescription drug distributor AmerisourceBergen Corp. said Thursday its net income sank 78 percent in the fiscal second quarter as it took a loss on the sale of its Canadian unit.
In late March the company agreed to sell AmerisourceBergen Canada Corp. to Kohl & Frisch Ltd. AmerisourceBergen said it expected to take a loss of $160 million to $180 million on the sale including impairment charges and other items. AmerisourceBergen also said profit margins at its pharmaceutical and specialty drug units both decreased and sales of cancer drugs were weaker than it expected.
The company also agreed to sell AndersonBrecon, its contract pharmaceutical packaging unit, just after the quarter ended. A group of investors led by Frazier Healthcare will buy the business for $308 million. Both businesses were classified as discontinued operations for the second quarter.
AmerisourceBergen expects both sales to close during its fiscal third quarter.
The company's net income decreased to $45.6 million, or 19 cents per share, from $212.1 million, or 81 cents per share. Earnings from continuing operations were 87 cents per share.
Revenue grew 4 percent to $20.52 billion from $19.71 billion.
Analysts expected income of 88 cents per share and $21.45 billion in revenue, according to FactSet.
Revenue from the company's pharmaceutical distribution revenue grew 3 percent to $20.13 billion, and revenue from specialty drugs, which often require specialized handling or administration, rose 47 percent to $435.4 million.
AmerisourceBergen said it still expects to earn between $3.04 and $3.14 per share in the current fiscal year, but said it will likely reach the lower end of that range. After announcing the sales of AmerisourceBergen Canada and AndersonBrecon, the company said its annual revenue would grow 8 to 10 percent, to a total of $85.85 billion to $87.44 billion.
Analysts expect net income of $3.08 per share and $86.41 billion in revenue on average. The company's fiscal year ends in September.
Shares of AmerisourceBergen slipped 63 cents to $55.19 in midday trading.