Printer Friendly

AMERICAN HOME PRODUCTS CORPORATION REPORTS SALES AND EARNINGS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 1993

 NEW YORK, Oct. 18 /PRNewswire/ -- American Home Products Corporation (NYSE: AHP) today reported sales and earnings for the third quarter and first nine months of 1993. Net sales were $2,168,116,000 for the 1993 third quarter, 3 percent above year ago levels. Net sales for the first nine months of 1993 were $6,188,547,000, 5 percent higher than 1992 results.
 Net income of $397,553,000 for the 1993 third quarter was 4 percent higher than year ago levels. Net income per share increased 5 percent from $1.22 to $1.28.
 Net income for the first nine months of 1993 was $1,086,552,000, compared to $1,099,289,000 for the same period in 1992. Net income per share for the first nine months of 1993 was $3.50 versus $3.49 in 1992. In 1992, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 109 - "Accounting for Income Taxes" and SFAS No. 106 - "Employers' Accounting for Postretirement Benefits Other Than Pensions", and recorded a $220,000,000 charge for acquired research in connection with the acquisition of Genetics Institute, Inc. These items contributed $90 million ($.29 per share) to net income in the first nine months of 1992. Excluding the impact of accounting changes and the charge for acquired research from 1992 results, net income and net income per share for the first nine months of 1993 increased 8 percent and 9 percent, respectively.
 Net sales of health care products increased 2 percent worldwide in the 1993 third quarter and 5 percent in the first nine months of 1993. Sales and net income growth in the third quarter were impacted by continued competitive market factors in the U.S. pharmaceutical market, weak economies in several major countries, and unfavorable foreign exchange rates in certain foreign markets, particularly in Europe.
 AMERICAN HOME PRODUCTS CORPORATION
 Net Sales Results Within Segment
 ($ in 000s)
 3 Months Ended Percent 9 Months Ended Percent
 9/30/93 Incr.(decr) 9/30/93 Increase
 from 1992 from 1992
 Pharmaceuticals $1,194,923 (1) $3,569,006 5
 Consumer Health Care 493,441 6 1,296,453 7
 Medical Supplies and 216,038 6 640,957 6
 Diagnostic Products
 Total $1,904,402 2 $5,506,416 5
 U.S. pharmaceutical sales increased 2 percent in the third quarter primarily due to an increase in anti-inflammatory product sales, with the introduction of Lodine 400, offset, in part, by a decrease in infant nutritional sales. Year-to-date U.S. pharmaceutical sales increased 6 percent due primarily to increases in the anti-inflammatory, cardiovascular and female health care product lines and Genetics Institute's rAHF (recombinant antihemophilic factor concentrate) bulk product sales, offset, in part, by a decline in infant nutritional sales.
 International pharmaceutical sales decreased by 5 percent for the third quarter due principally to unfavorable foreign exchange rates and weaker economies in certain key foreign markets. Sales increased 2 percent for the first nine months of 1993. Excluding the effects of foreign exchange, international pharmaceutical sales would have increased 7 percent in the third quarter and 10 percent for the nine month period.
 Consumer health care sales increased 6 percent worldwide in the 1993 third quarter and 7 percent in the first nine months of 1993. The U.S. consumer health care segment increased 5 percent in the third quarter, led by growth in the cough/cold product category. The international consumer health care segment grew 10 percent in the third quarter, despite the negative impact of foreign exchange rates in Europe. Sales increased 17 percent for the first nine months of 1993. Excluding the impact of exchange rates, international consumer health care sales increased 17 percent in the third quarter and 21 percent for the nine month period, led by strong unit volume growth in the oral health care product lines in Latin America.
 Sales of medical supplies and diagnostic products increased 6 percent for both the third quarter and first nine months of 1993, due in part to sales of Symbiosis Corp., which was acquired in September 1992.
 Net sales of food products increased 12 percent for the third quarter and 7 percent for the first nine months of 1993. The acquisition in the first quarter of 1993 of M. Polaner, Inc., a manufacturer of jams, jellies and wet spices, contributed significantly to this sales growth.
 AMERICAN HOME PRODUCTS CORPORATION
 Financial News
 Comparative Results
 (In thousands except per share amounts)
 Three Months Ended Nine Months Ended
 (Restated) (Restated)
 9/30/93 9/30/92 9/30/93 9/30/92
 Net sales $2,168,116 $2,109,318 $6,188,547 $5,871,224
 Income Before Taxes -
 Operations 540,874 546,423 1,481,490 1,443,383
 Special Charge (A) --- --- --- (220,000)
 Total 540,874 546,423 1,481,490 1,223,383
 Federal and Foreign Taxes
 on Income (B) 143,321 163,995 394,938 434,198
 Income Before Accounting
 Changes 397,553 382,428 1,086,552 789,185
 Cumulative Effect of
 Accounting Changes:
 - Income Taxes (B) --- --- --- 383,295
 - Postretirement Benefits
 Other Than Pensions (C) --- --- --- (73,191)
 Net Income $ 397,553 $ 382,428 $1,086,552 $1,099,289
 Earnings Per Share
 Income Before Accounting
 Changes $1.28 $1.22 $3.50 $2.50
 Cumulative Effect of
 Accounting Changes:
 - Income Taxes --- --- --- 1.22
 - Postretirement Benefits
 Other Than Pensions --- --- --- (.23)
 Total $1.28 $1.22 $3.50 $3.49
 Average Number of
 Shares (AA) 310,305 312,915 310,722 314,644
 (AA) -- Average number of common shares outstanding during each period assuming full conversion of preferred stock.
 (A) -- The special charge of $220,000,000 related to the portion of the purchase price of Genetics Institute, Inc. ("G.I.") that represented acquired research. The company acquired an approximate 60 percent interest in G.I. on Jan. 16, 1992.
 (B) -- Effective in the first quarter of 1992, the company adopted Statement of Financial Accounting Standards ("SFAS") No. 109 - "Accounting for Income Taxes". The new standard required the recognition, as of January 1, 1992, of the tax benefit related to the A.H. Robins net operating loss carryforward as of Jan. 1, 1992 and certain other tax benefits not previously recognized under SFAS No. 96.
 (C) -- Results for 1992 reflected the adoption of SFAS No. 106 - "Employers' Accounting for Postretirement Benefits Other Than Pensions". The new standard required the Company to record its accumulated postretirement benefit obligation as of Jan. 1, 1992, in excess of amounts previously recorded.
 -0- 10/18/93
 /CONTACT: John L. Skule, 212-878-5015, or (investors) Thomas G. Cavanagh, 212-878-5706, both of American Home Products/
 (AHP)


CO: American Home Products Corporation ST: New York IN: MTC FOD HOU SU: ERN

TS -- NY028 -- 3246 10/18/93 09:44 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 18, 1993
Words:1123
Previous Article:PRIMERICA'S THIRD QUARTER OPERATING EARNINGS PER SHARE UP 60 PERCENT TO $0.96; SMITH BARNEY SHEARSON RECORDS EARNINGS OF $118.8 MILLION
Next Article:GRC INTERNATIONAL, INC., ANNOUNCES SIX PRIME CONTRACT AWARDS TO SWL SUBSIDIARY WITH POTENTIAL REVENUES OF UP TO $37 MILLION
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters