Exhibit 99.1
News Release
[LOGO]
AmerisourceBergen AmerisourceBergen Corporation
P.O. Box 959
Contact: Michael N. Kilpatric Valley Forge, PA 19482
610-727-7118
mkilpatric@amerisource.com
AmerisourceBergen Reviews Growth Opportunities and
Strategy at Investor Meeting in New York City
Company Gives Update on Pharmaceutical Services Industry and Integration
Progress
VALLEY FORGE, PA, December 5, 2002 -- AmerisourceBergen (NYSE:ABC), the largest
pharmaceutical services company in the United States dedicated solely to the
pharmaceutical supply chain, held an investor meeting in New York City today to
give an update on its future plans.
Speaking at today's meeting, the Company's Chief Executive Officer R. David
Yost said, "We expect to grow our company by remaining focused on and enhancing
our position in the pharmaceutical supply channel. By harnessing the full array
of capabilities and expertise within AmerisourceBergen, we plan to bring new and
innovative value-added services to manufacturers and healthcare providers along
the channel. We remain focused on our integration efforts, and we are confident
that we will continue to meet our long term goals."
The Company expressed confidence in its pharmaceutical distribution
business and believes that the industry's fundamental growth drivers remain
strong. "We are committed to pharmaceutical distribution, and we plan to
increase our capabilities throughout the channel in areas such as specialty
pharmaceuticals, patient safety, and pharmacy automation," continued Yost.
"We also remain confident in our ability to achieve our targeted annual
cost saving synergies of $150 million by the end of fiscal year 2004, followed
by additional synergy capture through the completion of our distribution
network," remarked Yost. The Company previously announced that it would
consolidate a total of 27 of its original 51 facilities, build six new
distribution centers, and expand seven existing facilities. Seven consolidations
were completed in fiscal year 2002, and six larger distribution centers will be
consolidated in fiscal year 2003. The completed distribution network will
consist of 29 facilities located throughout the United States, and one facility
in Puerto Rico for a total of 30.
News Release
"We are pleased to announce that we have broken ground on two of our new,
state of the art distribution facilities, one in Columbus, Ohio, and one in
Sacramento, California," said Kurt J. Hilzinger, AmerisourceBergen President and
Chief Operating Officer. "These two new distribution centers will be excellent
examples of what we envision for our future distribution network--highly
automated, bar code enabled, strategically located facilities, with a footprint
of 300,000 square feet each and unparalleled operating efficiency." The Company
is actively pursuing the acquisition of land for the remaining four new
distribution centers. The new facilities become operational approximately 24
months after land is acquired.
"We also have made significant progress with the first of two planned
facility expansions that will be completed in fiscal year 2003. The expansion of
our Boston, Massachusetts distribution center is expected to be completed by the
end of the current calendar year," continued Hilzinger. "These facility
improvements will enhance our presence in each market and will enable us to
bring even greater efficiencies and added value to our customers."
Looking ahead, the Company continues to see significant growth
opportunities across its businesses. "Through our focus on the pharmaceutical
channel, we continue to expect to drive strong performance in fiscal year 2003,"
said Michael D. DiCandilo, AmerisourceBergen Senior Vice President and Chief
Financial Officer. "In our December quarter, we see operating revenue growth of
approximately 13 percent and earnings per share growth of 20 percent, excluding
special charges. For the fiscal year 2003, we continue to expect operating
revenue growth in line with projected market growth, a return on committed
capital of more than 20 percent, and earnings per share growth, excluding
special charges, of 20 percent.
"Our long-term goals remain to grow revenue with the market, consistently
achieve a return on committed capital of greater than 20 percent, and grow
earnings per share at 20 percent or more, excluding special charges."
A rebroadcast of today's investor meeting is available beginning at 3:30 pm
Eastern Time today on the Investor Relations page of the Company's website,
www.amerisourcebergen.com. The replay of the webcast will be available for 30
days.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is the largest pharmaceutical services company
in the United States dedicated solely to the pharmaceutical supply chain. It is
the leading distributor of pharmaceutical products and services to the hospital
systems and acute care market, alternate care facilities, independent community
pharmacies, and regional chain pharmacies. The Company is also a
News Release
leader in the institutional pharmacy marketplace. With more than $40 billion in
annualized operating revenue, AmerisourceBergen is headquartered in Valley
Forge, PA, and employs more than 13,000 people serving over 25,000 customers.
Forward-Looking Statements
This news release may contain certain "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements are based on management's
current expectations and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from the expectations
contained in the forward-looking statements. Forward-looking statements may
include statements addressing future financial and operating results of
AmerisourceBergen and the benefits and aspects of the 2001 merger between
AmeriSource Health Corporation and Bergen Brunswig Corporation.
The following factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements: the risk that
the businesses of AmeriSource and Bergen Brunswig will not be integrated
successfully; failure to obtain and retain expected synergies; and other
economic, business, competitive and/or regulatory factors affecting the business
of AmerisourceBergen generally.
More detailed information about these factors is set forth in
AmerisourceBergen's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for fiscal 2001, its Quarterly Reports
on Form 10-Q for fiscal 2002, and the joint proxy statement-prospectus for the
merger filed on August 1, 2001.
AmerisourceBergen is under no obligation to (and expressly disclaims any such
obligation to) update or alter any forward-looking statements whether as a
result of new information, future events or otherwise.
###