Pfizer (PFE) Reports Q4 Results, Guides Below The Street; Cutting 10% of Workforce

January 26, 2009 7:05 AM EST

Pfizer (NYSE: PFE) reports Q4 earnings of $0.65 per share, above the consensus of $0.59. Revenues came in at $12.35 billion, versus the consensus of $12.54 billion.

Pfizer sees FY09 EPS of $1.85-$1.95, ex-items, versus the consensus of $2.49. Sees FY09 revenues of $44.0-$46.0 billion, versus the consensus of $48.81 billion.

Pfizer 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. As part of this cost-reduction initiative, Pfizer intends to reduce its workforce by approximately 10%. The Company also intends to reduce the number of manufacturing sites to 41 from 46 today, as well as reduce its facilities square footage by approximately 15%. In conjunction with this program, Pfizer expects to incur costs of approximately $6 billion on a pre-tax basis, of which $1.5 billion has been incurred.

This morning, Pfizer announced a $68 billion takeover of Wyeth (NYSE: WYE).

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