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UPJOHN REPORTS RECORD SALES AND EARNINGS FOR YEAR; EARNINGS PER SHARE UP 19 PERCENT FOR YEAR, 21 PERCENT FOR QUARTER

 UPJOHN REPORTS RECORD SALES AND EARNINGS FOR YEAR;
 EARNINGS PER SHARE UP 19 PERCENT FOR YEAR, 21 PERCENT FOR QUARTER
 KALAMAZOO, Mich., Feb. 3 /PRNewswire/ -- The Upjohn Company (NYSE: UPJ) today reported record sales and earnings for 1991. Annual earnings from continuing operations increased 17 percent from a year ago to $537 million on sales of $3.4 billion, an increase of 13 percent. Fourth-quarter sales and earnings also increased over 1990 levels. Quarterly earnings from continuing operations were $136 million in 1991 on sales of $911 million, which rose 14 percent.
 Primary earnings per share from continuing operations of 76 cents were 21 percent higher than the 63 cents per share earned in the fourth quarter of 1990. Annual earnings per share rose 19 percent to $2.96, compared to $2.48 in 1990.
 Commenting on the company's results, Chairman of the Board and Chief Executive Officer Theodore Cooper said: "We are very pleased with the excellent performance achieved in 1991. It continues the solid trend of growth and profitability that has resulted from our efforts to focus strategically and streamline our businesses appropriately. Expansion of our sales force accelerated sales growth, while continued emphasis on cost-control measures contributed to the strong earnings growth. Through these efforts, we continue to build a solid foundation for the future."
 Fourth-quarter operating income was $177 million, compared to $153 million in 1990, an increase of 16 percent. Earnings before tax rose to $176 million from $153 million in the year-earlier period. Annual operating income of $713 million amounted to 21 percent of sales, compared to $662 million, or 22 percent of sales, in 1990.
 Cost of products sold as a percent of sales decreased to 26 percent from 27 percent during 1991. Marketing and administrative costs increased as a percent of sales from 38 percent to 39 percent in 1991 due in part to increased charitable contributions to a foundation that will distribute the funds in the future. Research and development expense remained at 14 percent of sales for the year.
 Annual earnings before tax increased 10 percent to $720 million from the $656 million earned in 1990. Earnings from continuing operations as a percent of sales increased to 16 percent from 15 percent the previous year.
 Worldwide sales of human health care products increased 15 percent in the fourth quarter compared to year-earlier sales and rose 14 percent for the year. Sales growth rates for major products were led by Ansaid, the nonsteroidal anti-inflammatory agent, up 29 percent for the year, and a 25-percent increase in sales of Micronase, the oral antidiabetes agent. Sales of Xanax, the anti-anxiety agent increased 23 percent. Provera, the progestational agent, also contributed to worldwide growth. Sales of Rogaine, the treatment for thinning hair were up in the U.S., more than offsetting a decline in non-U.S. markets.
 Annual sales of the sleep medication, Halcion, decreased one percent, primarily due to a decline of 23 percent in the fourth quarter. Sales of Motrin IB, the nonprescription internal analgesic, rose 54 percent for the year. Doxidan and Surfak, the over-the-counter laxatives, and Dramamine, the market-leading over-the-counter motion sickness medication, also contributed to a strong sales performance in the Consumer Products Division.
 Pharmaceutical sales outside the U.S. increased 6 percent in 1991. These gains reflected favorable exchange rates in Japan and increased volume of Xanax and the antibiotic Dalacin (Cleocin), which were partially offset by a decline in the sales of Halcion and unfavorable exchange rates in Europe during the fourth quarter.
 Worldwide agricultural sales were up 8 percent for both the fourth- quarter 1991 and full year. The worldwide animal health business achieved strong sales growth during 1991, while worldwide seed sales were up slightly. All major animal health products contributed to the strong volume growth, led by Naxcel, the antibiotic, which increased 39 percent for the year. Lincomix, the feed additive, also contributed to U.S. sales growth.
 U.S. sales for 1991 were $2.1 billion, up 17 percent from a year ago. Non-U.S. sales were up 6 percent, totaling $1.3 billion, and amounted to 38 percent of consolidated sales.
 The consolidated sales increase of 13 percent resulted from an 8-percent increase in volume and a 5-percent increase in price. The annual effective tax rate for 1991 was 25 percent, compared to 29.5 percent in 1990. The rate for 1991 was reduced in the fourth quarter from 26 percent to 25 percent and increased primary earnings per share by four cents for the quarter. The lower annual rate resulted primarily from a greater proportion of total earnings from products produced in Puerto Rico and a lesser proportion of foreign source income taxed at relatively higher rates.
 The Upjohn Company is a worldwide, research-based provider of human health care products, animal health products, agronomic and vegetable seeds and specialty chemicals. Headquartered in Kalamazoo, the company has been dedicated to improving health and nutrition for more than a century.
 THE UPJOHN COMPANY and subsidiaries report for the quarter
 and year ended Dec. 31, 1991
 (amounts in thousands, except per-share data):
 Fourth Quarter Year
 1991 1990 1991 1990
 Net sales $911,389 $798,677 $3,401,799 $3,020,868
 Other revenue 8,838 5,987 24,514 11,878
 Operating revenue 920,227 804,664 3,426,313 3,032,746
 Cost of products
 sold 217,970 207,649 874,656 823,227
 Research &
 development 137,258 113,625 491,065 427,197
 Marketing &
 administrative 388,417 330,684 1,342,383 1,158,065
 Pension credit &
 nonrecurring
 charges 5,000 (37,804)
 Operating income 176,582 152,706 713,209 662,061
 Interest income 14,624 13,146 51,511 45,513
 Interest expense (4,360) (7,123) (19,956) (30,954)
 Foreign exchange
 gains (losses) 570 (1,035) 4,165 (4,030)
 All other net (11,572) (4,387) (28,725) (17,040)
 Earnings from
 continuing operations
 before income taxes &
 minority interest 175,844 153,307 720,204 655,550
 Provision for income
 taxes 38,600 37,700 180,100 193,400
 Minority equity in
 earnings 867 (266) 2,685 4,083
 Earnings from
 continuing
 operations 136,377 115,873 537,419 458,067
 Loss from
 discontinued
 operations
 (net of tax) (7,464)
 Gain on disposal of
 discontinued
 operations,
 net of tax 5,078 5,078
 Net earnings 136,377 120,951 537,41 455,681
 Dividends on
 preferred stock 3,089 3,094 12,356 12,375
 Net earnings on
 common stock $133,288 $117,857 $525,063 $443,306
 Earnings per
 common share:
 Primary
 - Continuing
 operations $.76 $.63 $2.96 $2.48
 - Net earnings $.76 $.66 $2.96 $2.47
 Fully diluted
 - Continuing
 operations $.73 $.62 $2.87 $2.41
 - Net earnings $.73 $.64 $2.87 $2.40
 -0- 2/3/92
 /CONTACT: John P. Lambrechts of The Upjohn Company, 616-323-7076/
 (UPJ) CO: The Upjohn Company ST: Michigan IN: MTC SU: ERN


ML-KK -- DE013 -- 6156 02/03/92 11:49 EST
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Date:Feb 3, 1992
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