Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Zoetis Inc. | a8-kupdatetosegments2015.htm |
ZOETIS INC.
CONSOLIDATED REVENUE BY SEGMENT
(UNAUDITED)
(millions of dollars)
First Quarter | % Change | 2014 | |||||||||||||||||||||||||||
2015 | 2014 | Total | Foreign Exchange | Operational | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Livestock | $ | 715 | $ | 706 | 1 | % | (6 | )% | 7 | % | $ | 703 | $ | 790 | $ | 904 | |||||||||||||
Companion Animal | 377 | 380 | (1 | )% | (5 | )% | 4 | % | 439 | 408 | 405 | ||||||||||||||||||
Contract Manufacturing | 10 | 11 | (9 | )% | 3 | % | (12 | )% | 16 | 12 | 11 | ||||||||||||||||||
Total Revenue | $ | 1,102 | $ | 1,097 | — | % | (6 | )% | 6 | % | $ | 1,158 | $ | 1,210 | $ | 1,320 | |||||||||||||
U.S. | |||||||||||||||||||||||||||||
Livestock | $ | 299 | $ | 263 | 14 | % | — | % | 14 | % | $ | 224 | $ | 308 | $ | 368 | |||||||||||||
Companion Animal | 222 | 216 | 3 | % | — | % | 3 | % | 235 | 224 | 221 | ||||||||||||||||||
Total U.S. Revenue | $ | 521 | $ | 479 | 9 | % | — | % | 9 | % | $ | 459 | $ | 532 | $ | 589 | |||||||||||||
International | |||||||||||||||||||||||||||||
Livestock | $ | 416 | $ | 443 | (6 | )% | (9 | )% | 3 | % | $ | 479 | $ | 482 | $ | 536 | |||||||||||||
Companion Animal | 155 | 164 | (5 | )% | (10 | )% | 5 | % | 204 | 184 | 184 | ||||||||||||||||||
Total International Revenue | $ | 571 | $ | 607 | (6 | )% | (10 | )% | 4 | % | $ | 683 | $ | 666 | $ | 720 | |||||||||||||
ZOETIS INC.
CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS
(UNAUDITED)
(millions of dollars)
First Quarter | % Change | 2014 | |||||||||||||||||||||||||||
2015 | 2014 | Total | Foreign Exchange | Operational | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||
Total International | $ | 571 | $ | 607 | (6 | )% | (10 | )% | 4 | % | $ | 683 | $ | 666 | $ | 720 | |||||||||||||
Australia | 28 | 33 | (15 | )% | (11 | )% | (4 | )% | 45 | 47 | 48 | ||||||||||||||||||
Brazil | 64 | 64 | — | % | (14 | )% | 14 | % | 83 | 71 | 93 | ||||||||||||||||||
Canada | 33 | 36 | (8 | )% | (10 | )% | 2 | % | 55 | 39 | 60 | ||||||||||||||||||
China | 35 | 33 | 6 | % | (1 | )% | 7 | % | 23 | 24 | 27 | ||||||||||||||||||
France | 26 | 40 | (35 | )% | (11 | )% | (24 | )% | 34 | 40 | 37 | ||||||||||||||||||
Germany | 28 | 33 | (15 | )% | (14 | )% | (1 | )% | 40 | 34 | 43 | ||||||||||||||||||
Italy | 25 | 27 | (7 | )% | (12 | )% | 5 | % | 24 | 26 | 27 | ||||||||||||||||||
Japan | 26 | 29 | (10 | )% | (10 | )% | — | % | 32 | 17 | 26 | ||||||||||||||||||
Mexico | 18 | 21 | (14 | )% | (10 | )% | (4 | )% | 21 | 20 | 22 | ||||||||||||||||||
Spain | 19 | 21 | (10 | )% | (14 | )% | 4 | % | 23 | 23 | 23 | ||||||||||||||||||
United Kingdom | 42 | 43 | (2 | )% | (8 | )% | 6 | % | 36 | 42 | 44 | ||||||||||||||||||
Other Developed | 65 | 71 | (8 | )% | (9 | )% | 1 | % | 87 | 84 | 84 | ||||||||||||||||||
Other Emerging | 162 | 156 | 4 | % | (7 | )% | 11 | % | 180 | 199 | 186 | ||||||||||||||||||
Certain amounts and percentages may reflect rounding adjustments.
ZOETIS INC.
SEGMENT EARNINGS
(UNAUDITED)
(millions of dollars)
First Quarter | % Change | 2014 | |||||||||||||||||||||||||||
2015 | 2014 | Total | Foreign Exchange | Operational | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||
U.S.: | |||||||||||||||||||||||||||||
Revenue | $ | 521 | $ | 479 | 9 | % | — | % | 9 | % | $ | 459 | $ | 532 | $ | 589 | |||||||||||||
Cost of Sales | 125 | 111 | 13 | % | — | % | 13 | % | 106 | 126 | 139 | ||||||||||||||||||
Gross Profit | 396 | 368 | 8 | % | — | % | 13 | % | 353 | 406 | 450 | ||||||||||||||||||
Gross Margin | 76.0 | % | 76.8 | % | 76.9 | % | 76.3 | % | 76.4 | % | |||||||||||||||||||
Operating Expenses | 81 | 90 | (10 | )% | — | % | (10 | )% | 95 | 93 | 123 | ||||||||||||||||||
Other (income)/deductions | — | — | * | — | % | * | — | — | — | ||||||||||||||||||||
U.S. Earnings | 315 | 278 | 13 | % | — | % | 13 | % | 258 | 313 | 327 | ||||||||||||||||||
International: | |||||||||||||||||||||||||||||
Revenue | $ | 571 | $ | 607 | (6 | )% | (10 | )% | 4 | % | 683 | 666 | 720 | ||||||||||||||||
Cost of Sales | 204 | 217 | (6 | )% | (7 | )% | 1 | % | 243 | 241 | 263 | ||||||||||||||||||
Gross Profit | 367 | 390 | (6 | )% | (12 | )% | 6 | % | 440 | 425 | 457 | ||||||||||||||||||
Gross Margin | 64.3 | % | 64.3 | % | 64.4 | % | 63.8 | % | 63.5 | % | |||||||||||||||||||
Operating Expenses | 135 | 147 | (8 | )% | (10 | )% | 2 | % | 175 | 168 | 195 | ||||||||||||||||||
Other (income)/deductions | 2 | 1 | 100 | % | 100 | % | — | % | 2 | 2 | (3 | ) | |||||||||||||||||
International Earnings | 230 | 242 | (5 | )% | (13 | )% | 8 | % | 263 | 255 | 265 | ||||||||||||||||||
Total Operating Segments | $ | 545 | $ | 520 | 5 | % | (6 | )% | 11 | % | $ | 521 | $ | 568 | $ | 592 | |||||||||||||
Other business activities(a) | (68 | ) | (73 | ) | (7 | )% | (75 | ) | (76 | ) | (94 | ) | |||||||||||||||||
Reconciling Items: | |||||||||||||||||||||||||||||
Corporate(b) | (131 | ) | (122 | ) | 7 | % | (125 | ) | (142 | ) | (170 | ) | |||||||||||||||||
Purchase accounting adjustments(c) | (13 | ) | (12 | ) | 8 | % | (13 | ) | (13 | ) | (13 | ) | |||||||||||||||||
Acquisition-related costs(d) | (1 | ) | (2 | ) | (50 | )% | (2 | ) | (1 | ) | (3 | ) | |||||||||||||||||
Certain significant items(e) | (41 | ) | (36 | ) | 14 | % | (53 | ) | (38 | ) | (78 | ) | |||||||||||||||||
Other unallocated(f) | (61 | ) | (48 | ) | 27 | % | (53 | ) | (60 | ) | (79 | ) | |||||||||||||||||
Total Earnings(g) | $ | 230 | $ | 227 | 1 | % | $ | 200 | $ | 238 | $ | 155 | |||||||||||||||||
*Calculation not meaningful.
(a) | Other business activities reflect the research and development costs managed by our Research and Development organization as well as our contract manufacturing business. |
(b) | Corporate includes, among other things, administration expenses, interest expense, certain compensation and other costs not charged to our operating segments. |
(c) | Purchase accounting adjustments include certain charges related to intangible assets and property, plant and equipment not charged to our operating segments. |
(d) | Acquisition-related costs can include costs associated with acquiring, integrating and restructuring newly acquired businesses, such as transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring. |
(e) | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain costs related to becoming an independent public company, restructuring charges and implementation costs associated with our cost-reduction/productivity initiatives that are not associated with an acquisition, costs associated with the operational efficiency initiative, certain legal and commercial settlements, and the impact of divestiture-related gains and losses. |
(f) | Includes overhead expenses associated with our manufacturing and supply operations not directly attributable to an operating segment. |
(g) | Defined as income before provision for taxes on income. |
Certain amounts and percentages may reflect rounding adjustments.