Pfizer 2010 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2010 Pfizer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

Financial Review
Pfizer Inc. and Subsidiary Companies
Diversified Revenues
2010 vs. 2009
Worldwide Diversified revenues increased 114% in 2010, compared to 2009, due to:
•the inclusion of operational revenues from legacy Wyeth products of approximately $4.4 billion in 2010, which favorably impacted
Diversified revenues by 106%. The increase was primarily due to the addition of the legacy Wyeth Consumer Healthcare and Nutrition
operations. In addition, worldwide Diversified revenues were favorably impacted by the operational revenue increase in legacy Pfizer
Diversified businesses of 3% in 2010, and the favorable impact of foreign exchange of 5%.
Revenues from Animal Health increased 29% in 2010, compared to 2009, reflecting:
•the inclusion of operational revenues from legacy Wyeth Animal Health products of 22%;
•higher operational revenues from legacy Pfizer Animal Health products of 4% due primarily to growth in the companion animal and
livestock businesses; and
•the favorable impact of foreign exchange of 3%.
2009 vs. 2008
Worldwide Diversified revenues in 2009 were $4.2 billion, an increase of 17% compared to 2008, due to:
•revenues from legacy Wyeth products of approximately $764 million, primarily from the addition of the legacy Wyeth Consumer
Healthcare and Nutrition operations,
partially offset by:
•a decrease in revenues from legacy Pfizer Animal Health products and the Capsugel business, primarily due to the unfavorable impact
of foreign exchange.
Revenues from Animal Health products decreased 2% in 2009 compared to 2008, reflecting the unfavorable impact of foreign
exchange of 5%, flat operational performance of legacy Pfizer Animal Health products and the revenue increase from the addition of
legacy Wyeth Animal Health products of 3%.
The following factors impacted 2009 Animal Health results:
•the global recession, which negatively affected global spending on veterinary care;
•historically low milk prices, which hurt the profitability of dairy farmers and negatively impacted our livestock business; and
•a change in terms with U.S. distributors resulting in an anticipated, one-time reduction in U.S. distributor inventories in the first quarter of
2009.
24 2010 Financial Report