July 22, 2009 / 11:25 AM / 10 years ago

UPDATE 2-Pfizer profit falls, hurt by strong dollar

* EPS ex-items of 48 cents vs 47 cent estimate

* Raises FY 2009 forecast

* Shares down 2 cents

(Adds details from results, shares, analyst comment)

NEW YORK, July 22 (Reuters) - Pfizer Inc (PFE.N) said on Wednesday its second-quarter earnings fell 19 percent, as the strong dollar crimped revenue across its product line.

The world’s largest drugmaker earned $2.26 billion, or 34 cents per share, compared with $2.78 billion, or 41 cents per share, in the year-earlier period.

Excluding special items, the New York-based drugmaker earned 48 cents per share, one cent better than analyst expectations, according to Reuters Estimates.

Pfizer sales fell 9 percent to $10.98 billion, shy of the $11.26 billion estimate.

Revenue would have been generally unchanged without the impact of the strong dollar, which weakens the value of overseas sales. International sales amounted to 59 percent of Pfizer’s overall revenue in the quarter.

The drugmaker has been cutting jobs and other costs to shore up profits as its top-selling medicines endure generic competition and other pressures.

It said operational improvements resulting from cost-reduction initiatives lowered adjusted total costs by about 5 percent for the quarter.

“They’re a cost-cutting story and the story is beginning to play out, particularly in this quarter,” Morningstar analyst Damien Conover said.

Sales of Pfizer’s Lipitor cholesterol fighter, which faces competition from generic versions of other cholesterol medicines, fell 10 percent to $2.7 billion.

Sales of its smoking cessation drug Chantix fell 7 percent to $192 million amid concerns over possible psychiatric side effects.

Its Lyrica drug for neuropathic pain and fibromyalgia edged up 2 percent to $629 million.

Pfizer raised its full-year forecast for earnings, excluding items, to a range of $1.90 to $2.00 per share. Previously, it expected $1.85 to $1.95 per share.

Pfizer also projected full-year revenue in a range of $45 billion to $46 billion, lifting the lower end from $44 billion.

Pfizer shares were down 2 cents at $15.68 on the New York Stock Exchange. (Reporting by Lewis Krauskopf and Ransdell Pierson; editing by Jeffrey Benkoe and Derek Caney)

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