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WARNER-LAMBERT REPORTS FIRST-QUARTER SALES AND EARNINGS

 MORRIS PLAINS, N.J., April 19 /PRNewswire/ -- Warner-Lambert Company today reported an 11 percent earnings per share (EPS) gain on worldwide sales of $1.33 billion for the first quarter ended March 31, 1993. Worldwide sales increased 2 percent -- 4 percent at constant currency rates -- from $1.31 billion during the first quarter of 1992.
 On an as reported basis, EPS increased to $1.35, up 11 percent from $1.22 a year ago, and net income increased 11 percent to $182 million from $164 million in the first quarter of 1992. Excluding the impact of new accounting methods and a charge associated with repositioning the Novon Products Group, EPS increased 10 percent to $1.34.
 Melvin R. Goodes, chairman and chief executive officer, said strong worldwide sales of consumer products helped offset weakness in the sales of pharmaceutical products. He reiterated that first-quarter results were negatively affected by previously-disclosed regulatory issues related to the company's pharmaceutical manufacturing operations, primarily in Puerto Rico. Delay in the resolution of those issues and the impact of new pharmaceutical regulations in Germany contributed to an overall first-quarter sales performance that was ahead only modestly compared to a strong worldwide performance in the first quarter a year ago.
 Goodes said, "In keeping with our first-quarter performance, and based on the environment and our current planning assumptions, we anticipate a 10 percent EPS gain for 1993."
 During the first quarter, worldwide sales within the Pharmaceutical Sector, which includes prescription pharmaceuticals and the company's Capsugel empty hard gelatin capsule business, decreased 7 percent, to $515 million from $553 million a year ago. Leaders in the sector were the cardiovascular drug Accupril and the anti-inflammatory Ponstel. Pharmaceutical Sector sales decreased by 12 percent in the U.S. and by 1 percent in markets outside the U.S. At constant currency rates, however, sector sales outside the U.S. increased by 4 percent.
 Worldwide sales within the Consumer Sector increased 8 percent, to $817 million from $759 million, during the quarter. Halls cough tablets, Listerine mouthwash, Benadryl antihistamine and Schick shaving products led growth in the sector. Consumer Sector sales increased by 8 percent in the U.S. and by 7 percent outside the U.S. -- 12 percent at constant currency rates.
 As previously reported, the company adopted two new accounting standards during the first quarter that resulted in a net credit of $46 million after taxes. The adoption of SFAS 109, accounting for income taxes, resulted in a $63 million favorable impact on net earnings. The adoption of SFAS 112, employers' accounting for other postemployment benefits, resulted in a $17 million after-tax charge.
 As previously announced, the company incurred an after-tax charge of $45 million in connection with a repositioning of its Novon Products Group. During the quarter, Warner-Lambert said it is seeking investors who can capitalize on Novon's promise. "External factors are causing us to focus our resources on the consumer and pharmaceutical lines that form the foundation of our core businesses," Goodes said at the time.
 In other important developments during the first quarter:
 Warner-Lambert's Cognex (tacrine) became the first Alzheimer's drug ever recommended for approval by an FDA advisory committee. The company said it hoped to be able to make the drug available in the U.S. by mid- year.
 Warner-Lambert acquired the European, U.S. and Canadian operations of Wilkinson Sword, the international manufacturer and marketer of razors and blades. The acquisition, combined with the company's Schick operations, creates a half billion dollar global wet shave products business. The acquisition will make a small but positive contribution to earnings in the first year.
 The company announced the formation of a research-based alliance with the French pharmaceutical firm Jouveinal. The agreement, which includes Warner-Lambert's acquisition of a 34 percent interest in Jouveinal, will enable both companies to participate in the global development of Jouveinal's promising compounds.
 Warner-Lambert purchased the remaining shares of its confectionery products joint venture with SME of Italy, creating the second largest confectionery company in Italy.
 An FDA advisory committee recommended approval of Warner-Lambert's Accupril for the treatment of congestive heart failure. The drug is already marketed in the U.S. for hypertension and is currently approved for marketing in more than 40 countries, primarily for both hypertension and CHF.
 Manoplax, a novel treatment for CHF, was introduced in the U.S. in March. The drug, developed by Boots Pharmaceuticals, is being co- promoted by Warner-Lambert.
 Both firms are also co-promoting Lopid in the U.S.
 In January, the Board of Directors of Warner-Lambert voted to increase the regular quarterly dividend rate by 12 percent, from 51 cents to 57 cents per share of common stock. Annualized, the new dividend became $2.28 per year.
 Warner-Lambert is a worldwide company devoted to discovering, developing, manufacturing and marketing quality health care and consumer products. It employs approximately 35,000. In 1992, the company had worldwide sales of approximately $5.6 billion, EPS of $4.78 and net income of $644 million.
 Following is the summary of Warner-Lambert Company's financial results for the three months ended March 31, 1993 and 1992:
 WARNER-LAMBERT COMPANY
 Three months ended March 31,
 1993 1992
 Sales $1,331,738,000 $1,311,526,000
 Research and development 110,707,000 115,103,000
 Income before federal, state
 and foreign income taxes 174,790,000 (A) 222,624,000
 Net income before accounting
 changes 136,145,000 (A) 163,629,000
 Accounting changes (net of tax) 46,000,000 (B)
 Net income 182,145,000 (A)(B) 163,629,000
 Earnings per share $1.35 (A)(B) $1.22
 Average number of common
 shares outstanding 135,363,000 134,608,000
 (A) Includes a $70 million ($45 million after-tax or $.33 per share) one-time charge relating to the repositioning of the Novon Products Group.
 (B) Includes the adoption of Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes," which increased net income by $63 million or $.47 per share; and the adoption of SFAS No. 112, "Employers' Accounting for Postemployment Benefits," which resulted in a one-time charge of $27 million ($17 million after-tax or $.13 per share), both recorded as of January 1, 1993.
 -0- 4/19/93
 /CONTACT: Peter Wolf, 201-540-6696 (media); and Stephen Mock, 201-540-6916, or Cary Rosansky, 201-540-4874 (investors), all of Warner- Lambert/
 (WLA)


CO: Warner-Lambert Company ST: New Jersey IN: MTC SU: ERN

LR -- NY033 -- 7174 04/19/93 08:46 EDT
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