McKesson Corporation reported consolidated earnings results for the third quarter and nine months ended December 2012. The company reported third quarter results with total company revenues of $31.2 billion and adjusted earnings per diluted share of $1.41. Adjusted net income for the quarter was $340 million, and its adjusted earnings per share were $1.41. The company's earnings in this quarter were impacted by three items that also affect its full year outlook. First, the $40 million pretax charge for a legal dispute in its Distribution Solutions segment had a negative impact of approximately $0.12 per diluted share for the quarter and for the full year. Second, the revenue deferrals and slower implementations in its international technology business and its Technology Solutions segment lowered its adjusted earnings by approximately $0.05 this quarter. Third, full year expectation for its other businesses, primarily in Distribution Solutions, has improved by about $0.16 per diluted share, and essentially all of this increase will be seen in its March quarter.

For the year to date, the company generated $276 million in operating cash flow. Capitalized spending was $268 million for the first nine months of the fiscal year.

As a result of these three items, the company is updating its guidance for the year on adjusted earnings from $7.15 to $7.35 to a new range of $7.10 to $7.30. New range remains within its original guidance range of $7.05 to $7.35 that the company issued at the beginning of this fiscal year, but it has now narrowed the top end of that range by $0.05. The company continues to expect its cash flows from operations for the full year to be between $2 billion and $2.5 billion, but it's more likely now that the company will be in the low end of that range. The company continues however, to estimate that its full year adjusted tax rate will remain at 30.5%. The company now expects capitalized spending is to be come in a little bit below the low end of its prior range of $425 million to $475 million.