Pfizer fourth-quarter profit slips 3 percent

Pfizer Inc., the world’s biggest drug maker, said Thursday that fourth-quarter profit fell about 3 percent as sales retreated from year-ago levels, but the results topped Wall Street estimates when one-time charges are excluded.

Meanwhile, Swiss pharmaceutical giant Novartis AG, the maker of hypertension drug Diovan and epilepsy treatment Trileptal, reported a fourth-quarter net profit that was virtually flat due to one-time charges.

Pfizer shares rose 97 cents, or 4 percent, to close at $24.97 on the New York Stock Exchange on slightly higher than average volume.

Net income declined to $2.73 billion, or 37 cents per share, for the October-December period from $2.83 billion, or 38 cents per share, a year ago. Excluding one-time charges, the company reported earnings of $3.77 billion, or 51 cents per share, for the latest quarter. Revenue fell 9 percent to $13.59 billion from $14.92 billion last year.

Analysts surveyed by Thomson Financial had estimated fourth-quarter earnings of 42 cents per share on revenue of $13.16 billion. The estimates typically exclude one-time items.

Pfizer attributed the higher result to some of its cost-savings initiatives taking effect quicker than expected, saving it $800 million this year, double what it had predicted earlier.

On the other hand, the company saw higher restructuring and merger-related costs, which grew by 28 percent to $596 million in the quarter.

“Motorola Inc., the world’s second-largest maker of cell phones, rode the continuing momentum of its hot-selling Razrs to an 86 percent jump in fourth-quarter income.

The earnings reported Thursday topped Wall Street estimates, but revenue and handset shipment totals came in just shy of expectations, sending shares of the Schaumburg, Ill.-based company tumbling in after-hours activity following a 3 percent jump during the regular trading session.

Net earnings for the October-through-December quarter were $1.2 billion, or 47 cents per share, up from $647 million, or 28 cents per share, a year earlier.

Excluding certain items, including a gain from a legal settlement with Turkish network operator Telsim and tax adjustments, earnings were 35 cents per share. That was a penny more than the mean estimate of analysts surveyed by Thomson Financial.

“Wachovia Corp., the nation’s fourth-largest bank, said its earnings grew 18 percent in the fourth quarter, fueled largely by strong growth in fees, deposits and loans. The results were in line with analysts’ estimates.

Also Thursday, PNC Financial Services Group Inc. reported a strong profit gain above analysts’ expectations, but regional banker BB&T Corp. came in under estimates as rising rates squeezed margins.

Wachovia, which is based in Charlotte, reported that its net profit rose to $1.71 billion, or $1.09 per share, in the October-December period from $1.45 billion, or 95 cents per share, a year earlier.

Excluding merger and restructuring charges, the Charlotte-based bank would have earned $1.74 billion, or $1.11 per share, which matched Wall Street’s expectations, according to figures from Thomson Financial. Revenue was $6.56 billion, slightly under analysts’ projections.

The results also included a $214 million gain from the sale of Wachovia’s corporate trust and institutional custody business to U.S. Bancorp, which added 14 cents per share to its quarterly profit.

Wachovia’s shares fell 81 cents, or 1.5 percent, to close at $52.81 Thursday on the New York Stock Exchange. The bank’s shares hit a 52-week high of $56.28 on Feb. 11.

“Union Pacific Corp., the nation’s largest railroad operator, said Thursday its profit nearly quadrupled in the fourth quarter from results weighed down by a hefty charge a year ago. The increase was a more modest 27 percent excluding the charge.

Its shares rose $5.02, or 6.3 percent, to close at $85.02 on the New York Stock Exchange — eclipsing the company’s 52-week high of $81.26 set in late December.

Union Pacific earned $296 million, or $1.10 per share, for the quarter ended Dec. 31, down from $79 million, or 30 cents, in the year-ago period.