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1991: A GOOD YEAR FOR CIBA-GEIGY

 1991: A GOOD YEAR FOR CIBA-GEIGY
 BASEL, Switzerland, March 26 /PRNewswire/ -- Ciba-Geigy, Ltd.,


will announce the results for the past financial year today at an international press conference in London.
 Despite a difficult economic climate, a 5 percent sales increase in local currencies to 21,077 million Swiss francs was achieved (7 percent in SFr.) The 24 percent increase in group profit after taxation to 1,280 million Swiss francs is particularly noteworthy. This means earnings per share of 230 Swiss francs compared with 186 francs in 1990. The cash flow increased by a total of 17 percent to 2,481 million Swiss francs (446 Swiss francs per share compared to 381 francs the previous year).
 As well as the market success, productivity improvements also had a positive impact on the results. The proportion of costs to sales was reduced by almost 2 percent. Four-fifths of the 247 million Swiss franc increase in earnings after taxation was achieved through operational improvements and only one-fifth was the result of a favorable currency fluctuation.
 Alex Krauer, president and managing director, described the performance as "encouraging" and 1991 as a good year for Ciba-Geigy. "The results show that we are on the right track. We have set ourselves yet more ambitious goals for 1992. For what counts is not just a one-off bonanza, but sustained success."
 As a further step toward the dynamization of the organization begun in 1990, 14 autonomous divisions with full global responsibility for markets and results were created on Jan. 1, 1992.
 On Dec. 31, 1991, the Ciba-Geigy Group employed 91,665 staff worldwide -- a reduction of 2,476, around 1,800 of whom worked in Switzerland. Expressed as a percentage of sales, personnel expenses showed a reduction of 0.5 percent compared to 1990.
 Capital expenditure amounted to 1,957 million Swiss francs in 1991, a fall of 5 percent compared to 1990. Expenditure on research and development increased by 7 percent to 2,185 million Swiss francs.
 Sales in the healthcare sector increased in local currencies by 10 percent, and operating results from the divisions rose by 20 percent in Swiss franc terms. The agriculture sector increased sales in local currencies by 18 percent and improved operating results by 15 percent in Swiss francs. The industry sector achieved considerably higher margins despite recessive trends. While sales were 4 percent below those of 1990 in local currencies, operating results improved by 44 percent in Swiss francs. Thanks to restructuring programs and productivity improvements, the industrial divisions are now well-prepared to take advantage of an economic upturn. Their contribution of 29 percent to the cashflow emphasizes their strategic role (agriculture generated 22 percent and healthcare 49 percent).
 Ciba-Geigy's largest market is the European Community with a share of 36 percent and Europe as a whole, comprising 44 percent of sales. North America accounts for 32 percent, Asia 13 percent, and Latin America and remaining regions 11 percent. This represents only minor changes from 1990. The largest group company was the U.S. organization, followed by the companies in Germany, Japan and France.
 The sales of the individual divisions in 1991 developed as follows:
 CIBA-GEIGY, LTD.
 Sales 1991 Pct. Change from 1990
 SFr millions in SFr Currency
 Adjusted(A)
 Healthcare sector:
 Pharmaceutical specialties 5,811 12 9
 Self-medication 802 15 14
 Diagnostics 451 14 9
 Ciba Vision 750 16 12
 Total 7,824 13 10
 Agriculture:
 Plant protection 4,193 16 18
 Animal health 391 25 27
 Seeds 214 9 13
 Total 4,798 16 18
 Industry:
 Textile dyes 1,421 0 (1)
 Chemicals 1,258 2 1
 Additives 1,980 5 2
 Pigments 945 7 5
 Polymers 1,301 (1) (2)
 Composites 505 9 7
 Mettler-Toledo 1,034 (1) (3)
 Total 8,455 (2) (4)
 Group 21,077 7 5
 (A) -- At 1990 exchange rates (excluding high-inflation countries).
 The exchange rates used were averages for 1991. The average rates for the U.S. dollar in 1991 were SFr 1.43 and in 1990 SFr 1.38.
 The three sectors healthcare, agriculture, and industry achieved the following operating results in 1991:
 Operating Results in SFr millions
 1991 1990 Pct. Growth
 Healthcare 1,253 1,047 20
 Agriculture 507 442 15
 Industry 349 243 44
 Business sectors 2,108 1,732 22
 Financial income (expense) (141) (74) 91
 Remaining group expenses
 and taxes (888) (625) 10
 Group profit after taxes 1,280 1,033 24
 In line with the flexible dividend policy, the directors will propose at the annual general meeting -- to be held on May 6, 1992 -- that the dividend be declared 5 Swiss francs more than for 1990, namely 65 Swiss francs per share and participation certificate.
 With effect from Jan. 1, 1993, the Ciba-Geigy Group's internal and external financial reporting will be adapted to meet the requirements of the International Accounting Standards (IAS) and European Community (EC) regulations. This will make Ciba-Geigy's financial performance more comparable and easier to interpret for its increasing number of international investors.
 The healthcare sector has an optimistic 1992 outlook. Numerous new product introductions and the ongoing effect of successful 1991 launches in the United States and other important markets should generate accelerated growth. Ciba-Geigy said "an exciting line of new medicines" is awaiting market introduction in the coming years. All four healthcare divisions -- pharmaceutical specialties, self-medication, diagnostics, and Ciba Vision -- project for 1992 above-average development both in sales and divisional operating results. The agriculture sector, operating in a mature market and having fully integrated the Maag acquisition in 1991, expects slower growth for 1992. The largest division -- plant protection -- is geared to grow faster than the market due to a strong supply of new products. The animal health and seeds divisions intend to continue their successful expansion. In the industry sector, the major question concerns the timing of a possible economic upturn from which customer industries would benefit.
 While improvements are possible in some areas during 1992, most expect a general economic recovery only in 1993. Judging by their 1991 performance, however, the seven divisions are convinced that their strengths and products will achieve good growth rates and improve their market positions.
 -0- 3/26/92
 /CONTACT: Andre Haegi of Ciba-Geigy, Ltd., in Switzerland, 011-41-61-697-7507; Walter Hosp of Ciba-Geigy Corp., in New York, 914-479-2435; or Fern Lazar or Debra Wasser of Dewe Rogerson, 212-688-6840, for Ciba-Geigy/ CO: Ciba-Geigy, Ltd. ST: IN: HEA SU: ERN


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