McKesson Corporation announced unaudited consolidated financial results for the third quarter and nine months ended December 31, 2013. For the quarter, the company reported revenues of $34.306 billion against $31.099 billion a year ago. Operating income was $485 million against $498 million a year ago. Income from continuing operations before income taxes was $408 million against $449 million a year ago. Income from continuing operations was $156 million or $0.67 per diluted share against $306 million or $1.27 per diluted share a year ago. Net income was $64 million or $0.28 per diluted share against $298 million or $1.24 per diluted share a year ago. Third-quarter adjusted earnings per diluted share from continuing operations were $1.45 compared to $1.44 a year ago. Non-GAAP income from continuing operations before income tax was $704 million against $514 million a year ago. Non-GAAP income from continuing operations was $339 million against $348 million a year ago. Non-GAAP diluted earnings per common share from continuing operations were $1.45 against $1.44 a year ago. Operating profit was $589 million against $617 million a year ago. Non-GAAP operating profit was $850 million against $681 million a year ago. Income from continuing operations before interest expense and income tax was $477 million against $508 million a year ago. Non-GAAP Income from continuing operations before interest expense and income tax was $763 million against $572 million a year ago.

For the nine months, the company reported revenues of $99.468 billion against $91.553 billion a year ago. Operating income was $1,811 million against $1,680 million a year ago. Income from continuing operations before income taxes was $1,631 million against $1,538 million a year ago. Income from continuing operations was $992 million or $4.26 per diluted share against $1,084 million or $4.51 per diluted share a year ago. Net income was $892 million or $3.83 per diluted share against $1,079 million or $4.49 per diluted share a year ago. Net cash provided by operating activities was $472 million against $276 million a year ago. Property acquisitions were $188 million against $145 million a year ago. Capitalized software expenditures were $108 million against $111 million a year ago. Non-GAAP income from continuing operations before income tax was $2,188 million against $1,684 million a year ago. Non-GAAP income from continuing operations was $1,349 million against $1,177 million a year ago. Non-GAAP diluted earnings per common share from continuing operations were $5.79 against $4.89 a year ago. Operating profit was $2,125 million against $1,920 million a year ago. Non-GAAP operating profit was $2,646 million against $2,146 million a year ago. Income from continuing operations before interest expense and income tax was $1,818 million against $1,708 million a year ago. Non-GAAP Income from continuing operations before interest expense and income tax was $2,365 million against $1,853 million a year ago. Internal capital spending totaled $296 million for the first nine months of fiscal 2014.

The company is updating previous outlook and now expect adjusted earnings per diluted share of $8.05 to $8.20 for the fiscal year ending March 31, 2014. For the full year, excluding the impact of the acquisitions, the company expects total company adjusted operating expenses to increase approximately 3%. Other income year-over-year was slightly lower for the quarter at $5 million. Interest expense was approximately in line with the prior year at $59 million. The company now expects its full year adjusted tax rate to be 36.5%, an increase from its previous estimate of 31%, driven by the current quarter Canadian tax reserve adjustment and a change in its mix of foreign and domestic income. Excluding the current quarter tax reserve adjustment, the adjusted full year tax rate would be 32.5%. Overall, for the full year, the company continues to expect that cash flow from operations will total approximately $2 billion. The company now expects full year internal capital spending to be approximately $400 million.