Bristol-Myers Squibb's 2nd-qtr EPS plunges on flat sales and tax increase

US drug major Bristol-Myers Squibb reported that its net earnings for the second quarter of 2006 were $667.0 million, or $0.34 per diluted share, on a generally-accepted accounting principles basis, down from the $991.0 million, or $0.50 per diluted share, for the comparable period last year. The firm said that the drop in earnings is mainly due to the significantly lower tax rate in 2005, resulting from the benefits realized from the resolution of a tax audit and a one time American Jobs Creation Act-related tax adjustment.

Another factor that contributed to the earnings decline was the firm's sales in the period, which were $4.87 billion, down slightly on the second quarter last year. The contributions from the company's nutraceuticals and health care operations, which were $582.0 million and $1.01 billion, respectively, were broadly the same as last year.

Pharmaceutical revenue declines