BAUSCH & LOMB ANNOUNCES THREE-YEAR STRATEGIC PLAN; Company Projects Double-Digit Growth for Major Businesses.NEW YORK--(BUSINESS WIRE)--December 6, 1995--Bausch & Lomb (NYSE/BOL) announced today a three-year strategic plan for stimulating strong growth in its established businesses. This plan envisions that the company will bring to market a stream of new products incorporating major technical advances. The plan, which outlines goals for each of the company's major operating units, is being presented by Bausch & Lomb's Chairman and Chief Executive Officer Daniel E. Gill and senior operating executives at a meeting of institutional investors in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . "While the pace of recovery in 1995 is not at the level we anticipated in January, our vision of Bausch & Lomb's future is very clear," Mr. Gill said. "We see our company as capable of double-digit revenue growth compounded over time." He added that the company should be able to achieve substantially higher profitability and consistently attractive rates of cash flow. Contact Lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. Business Bausch & Lomb's three-year plan The Three-Year Plan of Reconstructing the Economy (Polish: Trzyletni Plan Odbudowy Gospodarki) was a centralized plan created by the Polish communist government to rebuild Poland after the devastation of the Second World War. includes several key strategies for managing the transition of the company's $300 million global contact lens business from its base of traditional lenses to the low-priced, high volume disposable market. As part of this transition, the company is reshaping its core product offerings through introductions such as the new Soflens 66 high- water disposable lens and the use of innovative materials and designs. In addition, a patented new manufacturing process being developed jointly with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) will be a key factor in achieving more cost-effective production of high-quality lens products. This process, which is expected to reduce manufacturing costs by more than 50 percent, is scheduled to be implemented beginning in the fall of 1996. "All of our projections strongly indicate that we should be able to build a global contact lens business with operating margins in the mid-teens in about three years time," Mr. Gill said, adding that he expects the lens unit globally to begin contributing to corporate profits in 1996. Eyewear Business The strategic plan also places emphasis on improving growth and operating margins in Bausch & Lomb's $550 million global eyewear business, which is the leader in the global premium-price sunglass sun·glass n. 1. A convex lens used to focus the sun's rays and produce heat, especially for ignition. 2. sunglasses Eyeglasses with tinted or polarizing lenses to protect the eyes from the sun's glare. market. "We're working to make this a 10 percent growth business with operating margins in the high teens over the next three years," Mr. Gill said. To attain this growth target, the company has initiated a strategy for responding to changes in the global sunglass market, as an influx of young, affluent consumers increases demand for premium-priced sports and contemporary sunglasses sunglasses A tinted pair of glasses used to ↓ light arriving at the eye, which are labeled according to the amount of UV light blocked; nonprescription glasses are classified according to use and amount of UV radiation blocked Sunglasses . In 1995 Bausch & Lomb introduced a portfolio of new products aimed at this market, including the successful Orbs and xRays sunglass lines, to build a family of sunglass products that complements its classic Ray-Ban line and to establish a strong presence in the high-growth sports and contemporary market segments. The company also indicated that it will continue to consider strategic acquisitions to help build brands in these areas. Contact Lens Care Business The leader in the global contact lens care products business, Bausch & Lomb is continuing its successful strategy of leveraging its leading share of recommendations from eyecare practitioners as well as its investment in research and development. The company anticipates compound revenue gains in the mid-single-digit range, with much of that growth coming from markets outside the U.S. where new contact lens wearers are still entering the market in significant numbers. "According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. independent surveys, Bausch & Lomb's unit share of the U.S. lens care market is at a seven-year high, despite a recent leveling off of shipments to retail," Mr. Gill said. "This is clearly a testament to the technological superiority that has always been a hallmark of these products." Pharmaceutical and Biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. Businesses The company described its pharmaceutical business, comprising general eyecare products and other OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). products as well as prescription eyecare products, as an area it is managing for high growth. Over the last two years the company received more than 30 FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approvals to market generic and proprietary drugs in the U.S., leading to compound revenue growth of more than 20 percent. "We think this will continue to be one of our fastest-growing businesses, as we add to our line of generic ophthalmic drugs and begin to enrich our product mix in eyecare and other pharmaceutical segments," Mr. Gill said. The company's Charles River Charles River River, eastern Massachusetts, U.S. The longest river wholly in the state, it flows into Boston Bay after a course of about 80 mi (130 km). Navigable for about 7 mi (11 km), its estuary separates the cities of Boston and Cambridge. Laboratories subsidiary, which develops biomedical products and purpose-breeds laboratory animals for biomedical research Biomedical research (or experimental medicine), in general simply known as medical research, is the basic research or applied research conducted to aid the body of knowledge in the field of medicine. , currently exhibits high-single- digit growth and cash flow exceeding $30 million annually. Mr. Gill indicated that this is an area where the company will continue to explore small acquisitions to leverage its scientific and physical assets and open opportunities beyond the laboratory animal business. 1996 Milestones Bausch & Lomb offered analysts a series of milestones by which to assess the company's progress toward its stated goals in 1996. These include expanded distribution of the Soflens 66 contact lens and the start-up of the new lens manufacturing process; robust, new sunglass product offerings, better sunglass product availability and a mix of sunglass sales with about one- third of revenues from new products; a decision concerning the long-term future of the company's oral care business and continued progress in the emerging hearing care, skin care and dental implant dental implant n. An artificial tooth that is anchored in the gums or jawbone to replace a missing tooth. dental implant businesses. Bausch & Lomb, a leader in selected segments of global health care and optical markets, is headquartered in Rochester, N.Y. The company has manufacturing or marketing organizations in 34 countries and employs 14,400 people worldwide. -0- Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : A full text copy of Mr. Gill's remarks is available on request. CONTACT: Bausch & Lomb Charles Poole Director - Investor Relations Investor relations The process by which the corporation communicates with its investors. 716/338-6553 or Holly Echols Director - Media Relations 716/338-8064 or Gus Carlson Hill and Knowlton 212/885-0345 |
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