McKesson Corp., San Francisco, projected that its information technology unit will take two to three years to reach the level of profitability recorded by the unit in 1999 as the newly acquired business of HBO & Co. Then, operating profit margins were in the mid-teens, but an accounting scandal and a market downturn took a toll. McKesson CEO John Hammergren made the projection during a discussion with analysts and investors about operating results for the quarter ended June 30. The healthcare software unit's operating profit for the quarter totaled $18.5 million on sales of $254 million, a margin of 7.3%. The unit recorded a 4.3% operating margin in the year-ago quarter, earning $10.6 million on revenue of $246 million. In the same quarter of 1999, its operating margin was 16.3%. McKesson acquired HBO & Co., Atlanta, in January 1999. -- by John Morrissey
McKesson: A few years before IT unit rebounds
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