McKesson Corporation

McKesson Corporation (NYSE: MCK) today reported that revenues for the
first quarter ended June 30, 2010 were $27.5 billion compared to $26.7
billion a year ago. First-quarter earnings per diluted share was $1.10
compared to $1.06 per diluted share a year ago.

"I am pleased to
report that McKesson is off to a solid start for Fiscal 2011, driven by
strong performance in our Distribution Solutions segment," said John H.
Hammergren, chairman and chief executive officer. "Our results this
quarter give us momentum for the remainder of our fiscal year, and we
continue to expect that McKesson should earn between $4.72 and $4.92 per
diluted share from continuing operations for the fiscal year ending
March 31, 2011."

The company remains committed to its portfolio approach to capital
deployment. During the first quarter, McKesson entered into an
accelerated share buyback agreement to repurchase $1 billion of common
stock, leaving $531 million on its current share repurchase
authorization. The company also paid $33 million in dividends during the
first quarter. On May 26, the Company announced an increase of 50% to
its regular quarterly dividend beginning with the dividend payable on
July 1, 2010.

In July of 2010, McKesson sold its wholly-owned
subsidiary, McKesson Asia Pacific Pty Limited ("MAP"), a provider of
phone and web-based healthcare services in Australia and New Zealand,
for net cash proceeds of approximately $116 million. The divestiture is
anticipated to generate a pre-tax gain of approximately $94 million ($72
million after-tax), which will be recorded as a discontinued operation
in our condensed statement of operations in the second quarter ending
September 30, 2010.

For the first quarter, McKesson had cash flow
from operations of $528 million and ended the quarter with a cash
balance of $3.3 billion.

Source:http://www.news-medical.net/news/20100730/McKesson-first-quarter-revenues-increase-to-24275-billion.aspx