By Anastasia Tomazhenkova: Omnicare Inc. posted that its fourth-quarter net profit fell to $20.8 million, or 17 cents per share, compared with net income of 69.7 million dollars, or 58 cents per share, in the year-earlier quarter, as the company recorded a 94 million dollars pretax provision for "doubtful accounts" in light of recent customer bankruptcies, changes in Medicare reimbursements and "other legal action."
The company had expected per-share earnings, excluding items, of
Net sales fell 2.7% to 1.56 billion dollars from 1.6 billion dollars a year ago. .
The mean earnings estimate of analysts polled by Thomson Financial was
"Our results for the year reflect the challenges we have faced over the last 24 months with the convergence of Medicare Part D, and its ongoing evolution, with the burgeoning shift toward generic drugs and the complexities this has brought to our business," said Chief Executive
The company recently came under federal scrutiny for allegedly attempting to steer senior clients to its Medicare prescription drug plans.
Edward Hutton, who had been chairman since 1981, retired to become "chairman emeritus." The company is searching for a replacement.