HÜNENBERG, Switzerland – Despite what its CEO described as a “challenging economic environment,” Alcon, Inc. (NYSE: ACL) reported increases in sales and earnings for the fiscal year.

In light of the current dynamics in the marketplace, the company reported it expects 2009 organic sales growth (excluding currency and acquisitions) to be in the mid-single digits. The company also expects that organic sales growth in the first half of the year is likely to be at the low end of this range due to the current challenging economic and market environment.

Alcon posted global sales of $1,497.5 million for the fourth quarter of 2008, an increase of 1.9 percent compared to the fourth quarter of 2007, or 7.1 percent excluding the impact of foreign exchange fluctuations. Acquisition revenue contributed growth of 0.7 percent, resulting in an organic growth rate of 6.4 percent. Net earnings for the fourth quarter of 2008 increased 12.5 percent to $423.6 million compared to $376.5 million for the period in 2007.

For the full year 2008, Alcon, Inc. reported global sales of $6,293.7 million, an increase of 12.4 percent over 2007 global sales of $5,599.6 million, or 9.5 percent excluding the impact of foreign exchange fluctuations. Acquisition revenue contributed growth of 1.2 percent, resulting in an organic growth rate of 8.3 percent. Net earnings for 2008 rose 29.0 percent to $2,046.5 million, compared to $1,586.4 million for the full year 2007. Results for 2008 included a $235.7 million reduction in taxes related to an agreement with the Internal Revenue Service regarding the company’s investment in and advances to the former Summit Autonomous, Inc. Excluding this tax benefit, net earnings for the full year 2008 would have been $1,810.8 million. Results for 2007 included an after tax charge of $20.8 million related to the impairment of Alcon’s refractive assets.

In his comment, Cary Rayment, Alcon’s chairman, president and CEO, said, “Alcon again delivered solid financial results for the fourth quarter and full year of 2008, and did so in a challenging business environment, which accelerated in the fourth quarter. The long term strategic drivers of our business remain in place, supported by the favorable demographics of the eyecare industry and our demonstrated ability to gain market share.”

Alcon’s sales in the U.S. increased 2.8 percent to $665.2 million while international sales rose 1.2 percent to $832.3 million, or 10.4 percent excluding foreign exchange, with sales in emerging markets increasing 3.0 percent, or 16.4 percent excluding the impact of foreign exchange.. Pharmaceutical sales of $578.1 million were flat in the quarter, but grew 4.8 percent on a constant currency basis. Outside the U.S., Alcon reported solid growth with pharmaceutical sales rising 10.9 percent in constant currency while the company said its U.S. pharmaceutical sales were negatively affected by a decline in prescription volumes for the U.S. ophthalmic market.

Consumer eyecare sales of $196.2 million increased 2.9 percent, or 8.7 percent on a constant currency basis. Sales of contact lens disinfectants grew 7.6 percent.

Surgical sales of $723.2 million rose 3.2 percent, or 8.5 percent on a constant currency basis. Unit growth of 6.5 percent for AcrySof intraocular lenses continued to exceed the estimated global growth rate of cataract procedures. Refractive revenue increased 22.9 percent due to the acquisition of WaveLight AG, but combined WaveLight and LADARVision U.S. procedures declined 15.2 percent for the quarter.

Alcon announced that Kevin Buehler will become president and CEO of the company on April 1, 2009. Rayment will retire as president and CEO on March 31, 2009, but will continue to serve on the board as Alcon’s non-executive chairman of the board. Buehler will also be nominated for election to the board of directors at the annual general meeting on May 5.