McKesson Corp. (NYSE: MCK), San Francisco, CA, reported sales for fiscal 2013 of $122.5 billion, down slightly from the prior year. Profit decreased 4.6 percent to $1.3 billion.
Fourth-quarter sales were $30.6 billion, down 3 percent compared to the prior year.
Distribution Solutions revenues were down 4 percent for the fourth quarter and were flat for the full year compared to the prior year. U.S. pharmaceutical distribution direct revenues were up 1 percent for the fourth quarter and warehouse sales were down 26 percent. For the full year, U.S. pharmaceutical distribution direct revenues were up 2 percent compared to the prior year, primarily reflecting market growth offset by the impact of brand-to-generic conversions. For the full year, warehouse sales were down 9 percent, primarily reflecting brand-to-generic conversions.
Canadian revenues, on a constant currency basis, decreased 5 percent for the fourth quarter primarily due to a customer transition and one less sales day. Including an unfavorable currency impact of 1 percent, Canadian revenues decreased 6 percent for the fourth quarter. For the full year, Canadian revenues decreased 2 percent on a constant currency basis. Including an unfavorable currency impact of 1 percent, Canadian revenues decreased 3 percent for the full year.
Medical-Surgical distribution and services revenues were up 37 percent for the fourth quarter driven primarily by the acquisition of PSS. For the full year, Medical-Surgical revenues were up 15 percent driven by market growth, new customers and the acquisition of PSS.
In Technology Solutions, revenues were up 6 percent for the fourth quarter and up 3 percent for the full year. GAAP operating profit was $28 million for the fourth quarter and GAAP operating margin was 3.07 percent. Adjusted operating profit was $50 million for the fourth quarter and adjusted operating margin was 5.48 percent. For the full year, adjusted operating profit was $371 million and the adjusted operating margin was 10.91 percent.
