For the fourth quarter of 2008, Pfizer posted net income of $266 million, a decline of 90% compared with the prior-year quarter, and reported diluted earnings per share (EPs) of $0.04.
For the full-year 2008, Pfizer reported revenues of $48.3 billion, essentially flat compared with 2007 full-year revenues of $48.4 billion, despite the loss of exclusivity of Norvasc, Zyrtec and Camptosar, which collectively decreased revenues by $2.6 billion.
For the full-year 2008, the company posted net income of $8.1 billion, essentially flat compared with the prior year, and reported diluted EPS of $1.20, an increase of 3% compared with $1.17.
Pfizer also said that it will implement a new cost-reduction initiative, which is expected to achieve incremental cost savings of approximately $3 billion, at 2008 average foreign exchange rates, compared with 2008 adjusted total costs of $28.6 billion. The program will be substantially complete by the end of 2010, with the full savings to be realized by the end of 2011.
Approximately $1 billion of these savings will be reinvested in the business, resulting in an expected $2 billion net decrease. As part of this cost-reduction initiative, Pfizer intends to reduce its workforce by approximately 10%.
Reductions will span sales, manufacturing, research and development, and administrative organizations. The company also intends to reduce the number of manufacturing sites to 41 from 46, as well as reduce its facilities square footage by approximately 15%.