Chattem's first quarter exceeds expectations. (As We Go To Press).* Chattem, Inc., Chattanooga, TN said results for the fiscal first quarter ended Feb. 28 exceeded results for the first quarter of fiscal 2001 and also the company's previous estimates. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter were $51.9 million up 9.4% and earnings before interest taxes, depreciation and amortization reached $9.5 million, an increase of 11.2% over last year. In its original estimate, Chattem didn't expect first quarter sales to top $50 million. The company said the gains were the result of improved sales of topical analgesic analgesic (ăn'əljē`zĭk), any of a diverse group of drugs used to relieve pain. Analgesic drugs include the nonsteroidal anti-inflammatory drugs (NSAIDs) such as the salicylates, narcotic drugs such as morphine, and synthetic drugs brands such as Dexatrim, Gold Bond medicated powder Gold Bond medicated powder is a brand of over-the-counter skin irritation medication produced by Chattem of Chattanooga, Tennessee. It is available as both a powder and a topical cream. , Garlique and pHisoderm. Sales of the topical analgesic franchise, which includes products such as FlexAll and Icy Hot, rose 31% over the corresponding year-ago period. Sales of Icy Hot soared 97% due to the launch of Icy Hot Pain-Relieving patch. Both Gold Bond Powder and Gold Bond Foot recorded impressive sales increases, up 12% and 114%, respectively. Sales of the overall Gold Bond franchise were hurt by weak sales of Gold Bond lotion lotion /lo·tion/ (lo´shun) a liquid suspension, solution, or emulsion for external application to the body. lo·tion n. 1. , adversely affected by the mild winter weather. PHisoderm reversed a declining sales trend and its revenues increased 12% over the first quarter of fiscal 2001. Chattem's international sales for the first quarter of 2002 increased 12%, due, in large part, to a strong performance from Gold Bond in Canada. Four products were newly distributed in the first quarter, including Dexatrim Results, Gold Bond Foot spray, pHisoderm Acne body wash and pHisoderm Acne Facial masque masque, courtly form of dramatic spectacle, popular in England in the first half of the 17th cent. The masque developed from the early 16th-century disguising, or mummery, in which disguised guests bearing presents would break into a festival and then join with their . Media support will begin in the second fiscal quarter for the new Dexatrim and Gold Bond products, and in the third quarter for the new pHisoderm items. Additionally, during the first quarter the company entered into a licensing agreement for the pHisoderm clear swab, an acne treatment in a patented cotton tip swab delivery system. "We were extremely pleased with our business in our first fiscal quarter of 2002," said Zan Guerry, chairman and chief executive officer, Chattem. "All of our major brands performed at or above expectations, and we were gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by the market's reception of our new line extensions. We believe this performance, combined with the expected positive effect of soon-to-be acquired Selsun Blue Selsun Blue is a shampoo, developed by Ross Laboratories, a subsidiary of Abbott Laboratories and later bought by Chattem, that functions as an over-the-counter treatment for dandruff. (see p. 106), should position us for another strong year of sales and earnings in 2002." |
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