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SMITHKLINE BEECHAM REPORTS RECORD 1991 EARNINGS; PRE-TAX PROFIT AND EARNINGS PER SHARE BOTH UP 17 PCT.; BOARD PROPOSES 2-FOR-1 SHARE SPLIT

SMITHKLINE BEECHAM REPORTS RECORD 1991 EARNINGS; PRE-TAX PROFIT AND EARNINGS PER SHARE BOTH UP 17 PCT.; BOARD PROPOSES 2-FOR-1 SHARE SPLIT
 PHILADELPHIA, Feb. 25 /PRNewswire/ -- SmithKline Beecham (NYSE: SBH) announced today that pre-tax profit for the year ended Dec. 31, 1991, increased 17 percent to break the billion pound barrier at $1.874 billion/1.002 billion pounds sterling.
 Earnings per share were up 17 percent at 89.8 cents/48.0 pence per Ordinary Share and 448.8 cents/240.0 pence per Equity Unit.
 Sales from continuing operations in 1991 were up 4 percent over 1990 at $8.761 billion/4.685 billion pounds. Operating profit (trading profit) from continuing operations was up 13 percent at $1.977/1.057 billion pounds. Currency had an adverse effect, with sales affected by 1 percent and profit by 2 percent. There was, however, some small benefit from the Bolar settlement and other minor disposals.
 For the fourth quarter, operating profit from continuing operations at $524 million/280 million pounds was 19 percent up on the same period last year. Sales from continuing operations were up 9 percent and margins increased to 22.4 percent. For the quarter, currency had a positive impact on sales of approximately 4 percent and 1 percent on trading profit.
 "SmithKline Beecham made significant progress in 1991 -- our second full year of operations," said Chief Executive Robert Bauman. "We accelerated our momentum and achieved our objectives for the year in a difficult operating environment.
 "The key objectives of the merger have been achieved. We are now focusing on growth and have made dramatic strides in our new product program. The U.S. approval and launch of Relafen(R), an arthritis drug, the launches of Seroxat(R), an antidepressant, in five major markets, Kytril(R), an anti-nausea drug, in eight markets, and the approval in the first markets of Havrix(R), the world's first hepatitis A vaccine, highlight the growing momentum of SmithKline Beecham's pharmaceutical operations.
 "In addition, twenty-four new registration filings can also be added to this performance for 1991."
 PHARMACEUTICAL sales for 1991 were up 4 percent and trading profit increased by 13 percent. Margins for the continuing business were up 2.2 percentage points at 28.1 percent, including some benefit from the Bolar settlement. A strong performance in the U.S. together with positive contributions from Gemany, Spain and France, helped offset poorer performances in Japan, the Middle East, Australia and Italy. The antibiotic Augmentin(R) again had record sales in 1991 of $942 million/504 million pounds, a 24 percent increase over 1990. Among the other antibiotics, Amoxil(R) grew by 9 percent and Timentin(R) by 28 percent.
 Tagamet(R), the peptic-ulcer medicine, kept its worldwide sales in excess of $1 billion for the sixth year running. Engerix-B(R), the genetically engineered hepatitis B vaccine, continued its success story with sales increasing 25 percent for the year, with strong contributions from France and Italy.
 At the end of 1991, Seroxat (paroxetine), the antidepressant, held an 11 percent share of the U.K. antidepressant market by value, and its acceptance by clinicians is ahead of its major competitors at a similar time after introduction. Investment in pharmaceutical R&D was $692 million/370 million pounds, a 9 percent increase over 1990 and 15 percent of sales.
 The CONSUMER BRANDS business had a modest sales increase of 1 percent for the year with operating profit up 12 percent. Sales have been affected by overall world economic conditions, mainly manifesting as customer and trade de-stocking. However, key brand shares continued to grow; Oxy(R) increased its market share to 27 percent in the U.S. and 19 percent in the U.K., and Tums(R) holds 32 percent and 16 percent market share in the U.S. and U.K. respectively. Drinks in the U.K., which includes Ribena(R) and Lucozade(R), had a sales increase of 7 percent. Macleans(R) toothpaste and mouthwash were particularly strong in the U.K., and the Odol(R) oral care range achieved an outstanding 74 percent market share in Germany.
 The company's ANIMAL HEALTH business, operating in adverse worldwide markets, had a 4 percent increase in sales, and a 5 percent increase in trading profit for the year. There was some improvement in the sales of ectoparasiticides, up 19 percent, and large animal biologicals, up 17 percent, but antibiotics remain relatively flat. The performance of the business still represents sound progress against the rest of the market.
 CLINICAL LABORATORIES continued an impressive performance, with sales and trading profit up 13 percent and 26 percent respectively. The business demonstrated strong growth in all sectors, particularly in areas such as clinical trials for other companies and the National Institute on Drug Abuse (NIDA) substances of abuse testing. The business introduced an electronic link to hospitals and physicians during the year, and a system to industrial customers allowing 24-hour access to drug testing results.
 FINANCIALS. The company's debt to shareholders' funds ratio fell to 42 percent as the combined effects of the strong cash flow and additions to retained earnings strengthened the balance sheet. The tax rate improved from 33.3 percent in 1990 to 32.8 percent in 1991.
 STOCK SPLIT. The board proposes that both the A and B Ordinary Shares should be split on the basis of two for one. It said it believes that this should enhance their marketability, particularly for smaller shareholders.
 Concurrently, and in order to make the A Share and the Equity Unit (which currently comprises five B Shares and one Preferred Share in SB Corporation) more easily comparable on the U.K. Stock Market, the Board proposes to divide the Equity Unit into five so that it comprises one split B Share and a correspondingly reduced Preferred Share.
 Both of these proposals will be put to shareholders at their annual meetings in May.
 As at present, the Equity Unit and the A Shares will be traded in the U.S. as ADR's which will represent five Equity Units or five A Shares respectively.
 DIVIDEND. A quarterly dividend of 4.15 pence per A Ordinary Share equivalent to 48.49 cents per Equity Unit has been declared. Payment will be on April 15, 1992, to shareholders of record on March 18, 1992. An exchange rate of $1.7525 to 1 pound has been used, which was the opening exchange rate in London on Feb. 25, 1992.
 SMITHKLINE BEECHAM
 Consolidated Profit and Loss Account
 Year ended Dec. 31, 1991
 (Unaudited)
 1991 1990 Increase/ 1991
 Pounds Pounds (Decrease) Dollars
 million million percent million(A)
 Sales
 Continuing operations 4,685 4,501 4 8,761
 Discontinued operations --- 263 --- ---
 Total 4,685 4,764 (2) 8,761
 Trading Profit:
 Continuing operations 1,057 938 13 1,977
 Discontinued operations --- 29 --
 Total 1,057 967 9 1,977
 Share of profits of
 associated companies 4 3 --- 7
 Interest (59) (110) --- (110)
 Profit on ordinary activities
 before taxation 1,002 860 17 1,874
 Tax on profit on ordinary
 activities (329) (286) --- (615)
 Profit on ordinary
 activities after taxation 673 574 17 1,259
 Minority interests (11) (9) --- (21)
 Auction Rate Preference
 Share Dividends (24) (21) --- (45)
 Profit before
 extraordinary items 638 544 17 1,193
 Extraordinary items --- 303 --- ---
 Profit attributable to
 shareholders 638 847 --- 1,193
 Earnings per Ordinary Share 48.0p 41.0p 17 89.8c
 Earnings per Equity Unit 240.0p 205.0p 17 448.8c
 (A) The translation of pounds sterling into U.S. dollars has been made at $1.87 to 1 pound (the rate applicable at Dec. 31, 1991) solely for the convenience of the reader.
 SMITHKLINE BEECHAM
 Consolidated Balance Sheet
 As at Dec. 31, 1991
 (Unaudited)
 1991 1990 1991
 Pounds Pounds Dollars
 million million million(A)
 Fixed Assets
 Tangible assets 1,551 1,433 2,901
 Investments 44 45 82
 TOTAL FIXED ASSETS 1,595 1,478 2,983
 Current Assets
 Stocks 526 488 984
 Debtors 1,204 1,150 2,251
 Cash and investments 782 773 1,462
 2,512 2,411 4,697
 Creditors - within one year
 Loans and overdrafts (1,032) (1,108) (1,930)
 Other (1,356) (1,306) (2,536)
 (2,388) (2,414) (4,466)
 NET CURRENT ASSETS/(LIABILITIES) 124 (3) 231
 TOTAL ASSETS LESS
 CURRENT LIABILITIES 1,719 1,475 3,214
 Creditors - more than one year
 Loans (252) (341) (471)
 Other (29) (31) (54)
 Provisions for liabilities and charges (234) (284) (438)
 (515) (656) (963)
 NET ASSETS 1,204 819 2,251
 Capital and reserves before
 goodwill elimination 1,670 1,288 3,123
 Goodwill reserve (927) (915) (1,734)
 SB Shareholders' Equity after
 elimination of goodwill 743 373 1,389
 Auction Rate Preference
 Shares of subsidiary 428 415 800
 Minority interests 33 31 62
 TOTAL SHAREHOLDERS' FUNDS 1,204 819 2,251
 (A) The translation of pounds sterling into U.S. dollars has been made at $1.87 to 1 pound (the rate applicable at Dec. 31, 1991) solely for the convenience of the reader.
 SMITHKLINE BEECHAM
 Source and Application of Funds
 (Unaudited)
 Year ended 1991 1990
 Dec. 31 Pounds Pounds
 million million
 Funds generated from trading
 Trading profit 1,057 967
 Depreciation 149 151
 Miscellaneous items, including exchange (25) (7)
 1,181 1,111
 Changes in working capital (59) 37
 Changes in fixed assets (244) (234)
 Cash flow from operations 878 914
 Interest (59) (110)
 Tax paid (216) (276)
 Dividends paid (261) (210)
 Free cash flow after financing costs and tax 342 318
 Shares issued 21 4
 (Purchase)/sale of investments (11) 3
 Auction Rate Preference Shares
 issued, less expenses --- 409
 Acquisitions, including deferred payments (22) (123)
 Disposal of businesses 57 526
 Restructuring costs and
 extraordinary items paid (177) (246)
 Net inflow of funds 210 891
 Net borrowings
 Net borrowings at beginning of year (676) (1,748)
 Exchange (36) 181
 Net inflow of funds 210 891
 Net borrowings at end of year (502) (676)
 SMITHKLINE BEECHAM
 Notes
 1. BASIS OF PREPARATION
 The unaudited results for the year ended Dec. 31, 1991, have been prepared in accordance with UK generally accepted accounting principles. The accounting policies applied are those set out in the Annual Report and Accounts for the year ended Dec. 31, 1990.
 2. SEGMENT INFORMATION
 SALES BY BUSINESS SECTOR
 1991 1990 Increase/ 1991
 Pounds Pounds (Decrease) Dollars
 million million percent million
 CONTINUING OPERATIONS
 Pharmaceuticals 2,470 2,377 4 4,619
 Animal Health 318 307 4 595
 Consumer Brands 1,358 1,342 1 2,539
 Clinical Laboratories 539 475 13 1,008
 Total Continuing Operations 4,685 4,501 4 8,761
 DISCONTINUED OPERATIONS --- 263 --- ---
 TOTAL SALES 4,685 4,764 (2) 8,761
 TRADING PROFIT BY BUSINESS SECTOR
 1991 1990 1991
 Pounds Pounds Increase Dollars
 million million percent million
 CONTINUING OPERATIONS
 Pharmaceuticals 694 616 13 1,298
 Animal Health 63 60 5 118
 Consumer Brands 232 208 12 434
 Clinical Laboratories 68 54 26 127
 Total Continuing Operations 1,057 938 13 1,977
 DISCONTINUED OPERATIONS --- 29 --- ---
 TOTAL TRADING PROFIT 1,057 967 9 1,977
 SALES BY LOCATION OF CUSTOMER
 1991 1990 1991
 Pounds Pounds Increase Dollars
 million million percent million
 United Kingdom 504 492 2 942
 Europe 1,273 1,233 3 2,381
 United States of America 2,078 1,956 6 3,886
 Rest of world 830 820 1 1,552
 Total Continuing Operations 4,685 4,501 4 8,761
 3. ANALYSIS OF TRADING PROFIT
 1991 1990 Favorable/ 1991
 Pounds Pounds (Unfavorable) Dollars
 million million percent million
 Sales 4,685 4,764 (2) 8,761
 Cost of Goods Sold (1,647) (1,703) 3 (3,080)
 Gross Profit 3,038 3,061 (1) 5,681
 Selling, general and
 administrative expenses (1,549) (1,701) 9 (2,896)
 Research and Development (432) (393) (10) (808)
 Trading Profit 1,057 967 9 1,977
 4. QUARTERLY ANALYSIS OF SALES AND PROFIT
 Quarter First Second Third Fourth Year
 (Pounds (Pounds (Pounds (Pounds (Pounds
 million) million) million) million) million)
 Sales -- Continuing Operations
 1991 1,110 1,155 1,170 1,250 4,685
 1990 1,155 1,123 1,075 1,148 4,501
 Percent change (4) 3 9 9 4
 Trading Profit - Continuing Operations
 1991 268 245 264 280 1,057
 1990 247 225 230 236 938
 Percent change 9 9 15 19 13
 Profit before taxation
 1991 253 230 252 267 1,002
 1990 219 197 218 226 860
 Percent change 16 17 16 18 17
 Earnings per Share
 1991 12.1p 11.0p 12.1p 12.8p 48.0p
 1990 10.8p 9.3p 9.9p 11.0p 41.0p
 Percent Change 12 18 22 16 17
 5. TAXATION
 The tax on profit on ordinary activities comprises:
 1991 1990 1991
 Pounds Pounds Dollars
 million million million
 United Kingdom taxation 32 41 60
 Overseas taxation (including
 associated companies) 297 245 555
 329 286 615
 6. EARNINGS PER SHARE
 1991 1990 1991
 Profit before extraordinary
 items 638m 544m $1,193m
 (pounds) (pounds)
 Average number of A Ordinary and
 B Ordinary Shares 1,328m 1,326m 1,328m
 Earnings per Ordinary Share 48.0p 41.0p 89.8c
 Earnings per Equity Unit 240.0p 205.0p 448.8c
 7. EXTRAORDINARY ITEMS
 1991 1990
 Pounds Pounds
 million million
 Profits on disposal of businesses --- 319
 Taxation --- (16)
 --- 303
 8. DIVIDENDS
 To the 'A' Ordinary Shareholders of the Company:
 Pence per Pounds
 Share million
 Interim dividends
 First -- paid 15 July 1991 3.75 25
 Second -- paid 15 October 1991 3.75 25
 Third -- paid 15 January 1992 3.75 25
 Fourth -- payable 15 April 1992 4.15 28
 15.40 103
 To the holders of Equity Units through SmithKline Beecham Corporation:
 Cents per Pounds
 equity unit million
 Interim dividends
 First -- paid 15 July 1991 43.09 33
 Second -- paid 15 October 1991 42.16 33
 Third -- paid 15 January 1992 42.44 33
 Fourth -- payable 15 April 1992 48.49 36
 176.18 135
 Dividends paid by SmithKline Beecham plc on the 'A' Ordinary Shares are paid net and carry a tax credit for United Kingdom purposes, currently equal to one third of the cash dividend. Dividends on the Equity Units are paid gross by SmithKline Beecham Corporation in the United States. The gross equivalent paid by SmithKline Beecham plc is equal to the amount paid by SmithKline Beecham Corporation. The fourth interim dividend will be paid to holders of record on April 15, 1992.
 9. ANNUAL REPORT
 The Annual Report and Accounts will be mailed to shareholders on April 3, 1992, and will be available to the public at the Registered Office, New Horizons Court, Great West Road, Brentford, Middlesex TW8 9EP, England.
 /delval/
 -0- 2/24/92
 /CONTACT: Jeremy Heymsfeld (media), 215-751-5166, or Richard Williams (financial), 215-751-7002, both of SmithKline Beecham/
 (SBH) CO: SmithKline Beecham ST: Pennsylvania IN: MTC SU: ERN


CC -- PH003 -- 2175 02/25/92 08:03 EST
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