McKesson Corp., San Francisco, reported a net loss of $665 million, or $2.26 per share, for the third quarter of fiscal 2005 ended Dec. 31, 2004. The loss resulted from an after-tax charge of $810 million associated with settling a shareholders class-action lawsuit earlier this month and establishing reserves for 16 remaining cases.
The lawsuits were filed in 1999 after McKesson disclosed a securities scandal that inflated revenue and earnings. Without the charge, the company would have posted net income of $145 million, or 49 cents per share, an increase of 20% from net income of $120 million in the year-ago quarter.
The company had revenue of $20.8 billion in the third quarter of fiscal 2005, a 14% increase from $18.2 billion in the same quarter of fiscal 2004. For the nine months ended Dec. 31, McKesson lost $416 million on revenue of $60 billion. During the same nine months of fiscal 2004, the company earned $432 million on revenue of $51.6 billion.