Page 25 - ARUBA TODAY

BUSINESS Wednesday 1 February
A25

UPS’ 4Q results fall short of Wall Street expectations

DAVID KOENIG every day is creating an lackluster forecast for 2017. cheaper to deliver a truck consumer delivery) was go-
AP Business Writer efficiency problem for Big The shares tumbled $7.05, full of boxes to one store ing to continue to grow, it’s
DALLAS (AP) — The growth Brown. or 6 percent, to $109.98 in than make a string of stops just the pace grew so fast
in online shopping means The company’s results in midday trading. at residential addresses, so ... that we’re going to have
more packages for UPS to the fourth quarter, which UPS said 55 percent of the shift weighed on the to ramp up those invest-
deliver, but dispatching includes the critical Christ- fourth-quarter deliveries — company costs despite the ments, we’re going to have
a massive fleet of trucks mas shopping season, fell and 63 percent in Decem- company’s investments in to ramp up the strategy,”
throughout American resi- short of Wall Street expec- ber — were directly to con- automation and efficiency. CEO David Abney said in
dential neighborhoods tations, and UPS gave a sumers; both records. It’s “We knew (business-to- an interview. q

Pfizer swings to 4Q profit after rough year, hikes 2017 view

LINDA A. JOHNSON medicines for eczema and
AP Medical Writer pain, approvals of three
Pfizer posted disappointing existing drugs for use in ad-
profit for the fourth quarter ditional patient groups and
to cap a difficult 2016, but possible approval this year
it predicted slightly better of a new cancer drug.
results for this year. Amid ongoing public frus-
The biggest U.S. drugmaker tration over drug prices,
earned less than analysts Read said in an interview
had expected, but rev- with The Associated Press
enue came in higher than Tuesday that the problem
projected. is that insurers are pushing
The maker of Viagra and more costs onto patients.
pain treatment Lyrica on He said Pfizer won’t pledge
Tuesday reported net in- to limit annual price in-
come of $775 million, or 13 creases, as a few rivals re-
cents per share, versus a cently did. Pfizer typically
loss of $172 million a year raises the list price on all of
ago, as it reduced spend- its drugs about 10 percent
ing on administration, sales, twice each year, though
marketing and lawsuits. wholesalers and other mid-
Excluding one-time items, dlemen get part of those
profit was 47 cents per increases. A woman passes Pfizer’s world headquarters, in New York. Pfizer Inc. (PFE) on Tuesday, Jan. 31,
share, three cents below Meanwhile, executives of 2017, reported fourth-quarter net income of $775 million, after reporting a loss in the same period
analyst estimates. Quarterly several other big drugmak- a year earlier.
revenue totaled $13.63 bil- ers met Tuesday with Presi- (AP Photo/Mark Lennihan)
lion, just above the $13.55 dent Trump, who called cent in the U.S., where Sales were driven by better- sales plunge 24 percent to
billion Wall Street had ex- for lower drug prices but Pfizer makes about half than-expected revenue for $1.42 billion, as the num-
pected. less regulation, saying that its sales, but fell 7 percent Viagra, Lyrica, new breast ber of unvaccinated adult
“As we look at the year could speed up drug ap- elsewhere. cancer drug Ibrance, rheu- Americans has dropped.
ahead, Pfizer’s well posi- provals and increase com- Pfizer’s Innovative Health matoid arthritis pill Xeljanz Sales fell 8 percent to $5.9
tioned,” CEO Ian Read told petition. segment, which sells new- and a couple other drugs. billion at Pfizer’s essential
analysts on a conference In afternoon trading, Pfiz- er, patent-protected medi- However, its top seller, the health business, which mar-
call. er shares rose 22 cents to cines, reported worldwide Prevnar 13 vaccine against kets older, mostly off-pat-
Company executives cited $31.53. fourth-quarter sales of $7.73 pneumonia, ear and other ent drugs, mainly due to
approval last year of new Revenue edged up 1 per- billion, up just 1 percent. common infections, had lower overseas sales.q
Shell selling stake in 10 North

Sea fields for near $3.8 billion

DANICA KIRKA the North Sea, where de-
Associated Press clining production and
LONDON (AP) — Royal lower oil prices have
Dutch Shell agreed Tues- forced companies to re-
day to sell stakes in 10 North think investments. Shell,
Sea oil fields to smaller rival which helped pioneer the
Chrysaor for as much as region, is now looking to ar-
$3.8 billion as it dumps as- eas such as Russia and the
sets to refocus its business in Gulf of Mexico.
an era of lower oil prices. Chrysaor will initially pay $3
The assets produced billion for the Shell assets,
115,000 barrels of oil equiv- with additional payments
alent a day last year, more of as much as $780 million
than half the 211,000 bar- depending on oil prices
rels generated by Shell’s and production from the
North Sea operations, the fields. Shell will retain the re-
company said. sponsibility to pay $1 billion
The transaction illustrates toward decommissioning
changes taking place in the oil fields. q