Printer Friendly

PFIZER REPORTS EARNINGS PER SHARE GROWTH OF 20 PERCENT ON A 3 PERCENT SALES GAIN FOR THE SECOND QUARTER

 NEW YORK, July 21 /PRNewswire/ -- Pfizer Inc (NYSE: PFE) today reported earnings per share of $0.79, a 20 percent increase over the second quarter of 1992, on a 3 percent sales gain. These results reflect the effect of significant divestments and business closures, restructuring charges and unusual items over the past two years. Excluding these items, earnings per share from ongoing operations increased 28 percent on a 10 percent sales gain compared to ongoing operations in the second quarter of last year.
 William C. Steere, Jr., Pfizer's chairman and chief executive officer, said, "Pfizer had another strong quarter which reflects two major factors. First, substantially all of our sales growth from ongoing operations was from increased volume -- with a 2 percent contribution from price increases offset by negative currency effects of 1 percent. This solid volume growth reflects the continuing success of our strategy to develop medicines that add true therapeutic value, are cost effective, and improve quality of life. We believe such medicines will always have significant potential. Second, this volume growth, combined with improved product mix and our ongoing effort to control expenses, is resulting in our income growing considerably faster than our sales."
 Two of Pfizer's business segments reported sales gains from ongoing operations for the quarter: health care, 12 percent and animal health, 2 percent. Food science sales were flat and consumer health care sales declined 2 percent. Within the health care segment, pharmaceutical sales increased 15 percent and hospital products sales increased 4 percent.
 On a reported basis, worldwide sales for the quarter were $1,748.7 million compared with $1,694.2 million in 1992, a 3 percent increase. Net income for the quarter was $253.8 million, a 15 percent increase over the $219.8 million the previous year. Earnings per share for the quarter were $0.79, up 20 percent from $0.66 in 1992. In the second quarter Pfizer sold its remaining 40 percent interest in Minerals Technologies Inc. resulting in a pre-tax gain of approximately $60 million. The gain was offset by certain restructuring charges resulting in a net pre-tax gain of $27 million, or about $0.06 per share.
 For the first six months of 1993, sales were $3,616.0 million, a 5 percent increase over the $3,455.5 million reported for 1992. Net income was $582.8 million and earnings per share were $1.80, a 148 percent and 157 percent increase, respectively, over the prior year. In the first quarter of 1992 a significant charge was taken for the adoption of two new accounting standards.
 To provide a clearer understanding of the company's underlying business trends, Pfizer's reported results are included in Attachment 1 and its results from ongoing operations in Attachment 2.
 Pfizer Inc is a diversified, research-based health care company with global operations. The company reported sales of approximately $7.23 billion for 1992.
 PFIZER INC AND SUBSIDIARY COMPANIES
 (CONSOLIDATED, UNAUDITED)
 (millions of dollars except per share data)
 Second Quarter Pct. Six Months Pct.
 1993 1992 Growth 1993 1992 Growth
 Net sales $ 1,748.7 $ 1,694.2 3 $ 3,616.0 $ 3,455.5 5
 Operating costs and expenses:
 Cost of goods sold 437.1 494.4 (12) 860.5 985.6 (13)
 Marketing, distribution
 and admin. expenses 757.9 711.4 7 1,498.6 1,397.3 7
 Research and deve-
 lopment expenses 230.8 214.0 8 446.2 403.3 11
 Divestitures, restructuring
 & unusual items (26.8) (78.2) (66) 2.0 (95.2) /A/
 Income from oper. 349.7 352.6 (1) 808.7 764.5 6
 Interest income 42.0 46.1 (9) 82.0 91.4 (10)
 Interest expense (26.8) (25.5) 5 (51.7) (54. 8) (6)
 Other income 17.5 9.2 90 24.3 15.2 60
 Other deductions (38.5) (32.5) 18 (75.1) (64.2) 17
 Non-operating
 income/(deductions)
 - net (5.8) (2.7) 115 (20.5) (12.4) 65
 Income before provision for taxes on income,
 minority interests and cumulative effect of
 accounting changes 343.9 349.9 (2) 788.2 752.1 5
 Provision for taxes
 on income 89.6 129.8 (31) 205.1 234.4 (13)
 Minority interests 0.5 0.3 67 0.3 0.5 (40)
 Income before cumulative effect of
 accounting changes 253.8 219.8 15 582.8 517.2 13


Cumulative effect of accounting changes for:
 Postretirement benefits,
 net of income taxes -- -- -- -- (312.6) --
 Income taxes -- -- -- -- 30.0 --
 Net income $ 253.8 $ 219.8 15 $ 582.8 $ 234.6 148


Earnings per common share:
 Income before cumulative effect of
 accounting changes $ 0.79 $ 0.66 20 $ 1.80 $ 1.54 17
 Cumulative effect of accounting changes for:
 Postretirement
 benefits -- -- -- -- (0.93) --
 Income taxes -- -- -- -- 0.09 --
 Net Income $ 0.79 $ 0.66 20 $ 1.80 $ 0.70 157
 (A) Calculation not meaningful
 1) For the periods ended July 4, 1993 and June 28, 1992.
 Subsidiaries operating outside the United States generally are
 included on the basis of interim periods ended May 30, 1993
 and May 24, 1992.
 2) On an as reported basis, sales gains/(declines) were as follows:
 Second Quarter Six Months
 (figures in percentages)
 Health Care 12 15
 Pharmaceuticals 15 17
 Hospital Products 4 7
 Consumer Health Care (2) (15)(a)
 Food Science (55)(b) (56)(b)
 Animal Health 2 5
 (a) Reflects the sale of the Coty business in the second quarter of 1992.
 (b) Reflects the sale of the Specialty Minerals business in the fourth quarter of 1992.
 3) Operating income for the second quarter and first six months of 1993 includes a pre-tax gain of approximately $60 million on the sale of the Company's remaining interest in Minerals Technologies Inc., offset by a provision in the second quarter for restructuring, consolidation and streamlining of certain of the Company's businesses of approximately $33 million. Therefore, this resulted in a $27 million net pre-tax gain in the second quarter, or about $0.06 per share. Also included in the six months results are restructuring charges of approximately $29 million recorded in the first quarter of 1993.
 Therefore, there was essentially no effect on net income or earnings per
share in the first six months of 1993. These amounts are included in the line divestitures, restructuring and unusual items-net.
 4) Operating income for the second quarter and first six months of 1992 has been restated for a curtailment gain of approximately $22 million relating to retirement obligations of the Coty business. As previously reported in the second quarter of 1992, a net restructuring gain of approximately $56 million relating to the divestiture and restructuring of certain of the Company's businesses, including the Coty transaction, is also included. This amounts to a $3 million after tax gain, or $0.01 per share. A retirement obligation curtailment gain of approximately $17 million, recorded in the first quarter of 1992, related to the sale of Shiley assets is also reflected in the 1992 first half results. These amounts are included in the line divestitures, restructuring and unusual items-net.
 5) The percentage growth in earnings per common share is greater than the growth in net income for the second quarter and first half of 1993 due to the effect of the Company's share repurchase program.
 6) The results of operations for the interim periods ended July 4, 1993 are not necessarily indicative of the results which ultimately might be achieved for the current year.
 ONGOING OPERATIONS
 PFIZER INC AND SUBSIDIARY COMPANIES
 (CONSOLIDATED, UNAUDITED)
 (millions of dollars except per share data)
 Second Quarter Pct. Six Months Pct.
 1993 1992 Growth 1993 1992 Growth
 Net sales $ 1,745.6 $ 1,586.0 10 $ 3,609.3 $ 3,212.8 12
 Operating costs and expenses
 Cost of goods sold 433.8 414.5 5 853.7 822.1 4
 Marketing, distri-
 bution and admin-
 istrative expenses 758.1 697.7 9 1,498.7 1,344.9 11
 Research and deve-
 lopment expenses 230.8 210.5 10 446.2 394.3 13
 Income from
 operations 322.9 263.3 23 810.7 651.5 24
 Interest income 42.0 46.1 (9) 82.0 91.4 (10)
 Interest expense (26.8) (25.5) 5 (51.7) (54.8) (6)
 Other income 17.5 9.1 92 24.3 14.2 71
 Other deductions (38.5) (32.1) 20 (75.1) (62.8) 20
 Non-operating
 income/(deductions)
 - net (5.8) (2.4) 142 (20.5) (12.0) 71
 Income before provision
 for taxes on income
 and minority
 interests 317.1 260.9 22 790.2 639.5 24
 Provision for taxes
 on income 82.6 67.8 22 205.6 166.3 24
 Minority interests 0.5 0.1 400 0.3 0.4 (25)
 Net income $ 234.0 $ 193.0 21 $ 584.3 $ 472.8 24
 Earnings per common
 share $ 0.73 $ 0.57 28 $ 1.80 $ 1.40 29
 1) For the periods ended July 4, 1993 and June 28, 1992. Subsidiaries operating outside the United States generally are included on the basis of interim periods ended May 30, 1993 and May 24, 1992.
 2) The data presented in the above table exclude restructuring and unusual items-net, the effects of divested businesses and one-time adjustments, including those resulting from the adoption of SFAS No. 106 and SFAS No. 109 in 1992.
 3) On an ongoing basis, sales gains/(declines) were as follows:
 Second Quarter Six Months
 (figures in percentages)
 Health Care 12 15
 Pharmaceuticals 15 17
 Hospital Products 4 7
 Consumer Health Care (2) (1)
 Food Science - (1)
 Animal Health 2 5
 4) Businesses divested or closed since 1988 are as follows:
 Approx. Last
 Date sold/closed Full Year Sales
 (millions of dollars)
 1/88 Metals business $40
 6/88 Canadian Crop Protection 55
 12/88 United Medical 15
 4/89 Valleylab Infusion 15
 1/90 Pigments 115
 1/90 DeKalb Pfizer Genetics (equity investment)
 12/90 Citric Acid business 180
 6/91 Penicillin business 25
 8/91 Pfizer Laser Systems 3
 10/91 Deknatel 85
 12/91 Oral Care International 70
 2/92 Shiley assets 185
 6/92 Coty 280
 10/92 Minerals business 359
 $1,427
 5) The percentage growth in earnings per common share is greater than the growth in net income for the second quarter and first half of 1993 due to the effect of the Company's share repurchase program.
 -0- 7/21/93
 /CONTACT: C. E. Heller of Pfizer, 212-573-3604/
 (PFE)


CO: Pfizer Inc ST: New York IN: MTC SU: ERN

DH-JP -- NY080 -- 4100 07/21/93 15:55 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:Jul 21, 1993
Words:1763
Previous Article:BRADLEES ANNOUNCES RESIGNATION OF TWO DIRECTORS
Next Article:FIELDCREST CANNON ANNOUNCES RESIGNATION OF DIRECTOR J. FRANK GERRITY II
Topics:


Related Articles
PFIZER REPORTS 1991 EARNINGS OF $2.13 PER SHARE, WHICH REFLECTS A $0.58 CHARGE FOR FUTURE SHILEY HEART VALVE FRACTURE CLAIMS
PFIZER REPORTS NET INCOME GROWTH OF 14 PERCENT ON A 4 PERCENT SALES GAIN IN SECOND QUARTER
PFIZER RESEARCH EXPENDITURES TO TOP $1 BILLION IN 1993; COMPANY REVIEWS FOUR NEWS DRUGS IN CLINICAL DEVELOPMENT
PFIZER'S REPORTED NET INCOME ROSE 8 PERCENT ON A 3 PERCENT SALES GAIN IN THE THIRD QUARTER
PFIZER REPORTS SIX PERCENT SALES GAIN IN FIRST QUARTER; EARNINGS PER SHARE OF $1.01 ARE 15 PERCENT ABOVE 1992 EPS BEFORE ACCOUNTING CHANGES
PFIZER INC REPORTS SALES AND EARNINGS INCREASES FOR FIRST QUARTER
SCHERING-PLOUGH REPORTS SALES, EARNINGS FOR SECOND QUARTER OF 1994
PFIZER INC SALES, NET INCOME AND EPS INCREASE TO RECORD LEVELS FOR QUARTER, YEAR
Pfizer Inc Second Quarter Total Revenues Reach $3,779 Million, Up By 14 Percent.

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