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AMERICAN HOME PRODUCTS CORPORATION REPORTS RECORD SALES AND EARNINGS FOR 1992,

 NEW YORK, Jan. 19 /PRNewswire/ -- American Home Products Corporation today reported results for the fourth quarter and 12 months ended Dec. 31, 1992. Net sales were $2,002,463,000 for the 1992 fourth quarter, 10 percent above 1991 levels. Net sales for the 12 months were $7,873,687,000, 11 percent higher than in 1991.
 Net income for the 1992 fourth quarter of $361,553,000 was 3 percent below prior year levels, due principally to the increase in the Company's effective tax rate resulting from the adoption of Statement of Financial Accounting Standards ("SFAS") No. 109 - "Accounting for Income Taxes" and to a lesser extent, from the adoption of SFAS No. 106 - "Employers' Accounting for Postretirement Benefits Other than Pensions". Net income for the year was $1,460,842,000, 6 percent above 1991 levels. Results for the year include SFAS No. 109 tax benefits of $383,295,000, a $73,191,000 after-tax charge for SFAS No. 106 and a $220,000,000 charge for the write-off of acquired research in connection with the acquisition of Genetics Institute, Inc. ("G.I."). Net income per share decreased 2 percent in the fourth quarter from $1.18 to $1.16 and increased 7 percent for the year, from $4.36 to $4.65.
 The Company's adoption of SFAS No. 109 resulted in the accelerated recognition of $301,706,000 of tax benefits related to the remaining net operating loss carryforward ("NOL"), as of Jan. 1, 1992, of the Company's A.H. Robins subsidiary, and additional tax benefits of $81,589,000 not previously recognized for financial statement purposes. These benefits have been recorded retroactive to the first quarter of 1992. Prior to the adoption of SFAS No. 109, the Company had recognized the NOL benefit, for financial reporting purposes, as this benefit was realized for tax purposes, in accordance with SFAS No. 96. The Company had previously recognized approximately $118,000,000 of the NOL benefit during the first nine months of 1992. Following ad of SFAS No. 109, the Company's effective tax rate, exclusive of the acquired research charge mentioned above, increased from 22 percent to approximately 29.5 percent. The Company expects that its effective tax rate in 1993 will be approximately 26-27 percent, assuming no changes in the tax rates of the principal countries in which it operates.
 The adoption of SFAS No. 106 resulted in a nonrecurring after-tax charge of approximately $73,191,000, also retroactive to the 1992 first quarter, for the Company's accumulated postretirement benefit obligation ("APBO"), in excess of amounts previously recorded. Following adoption of SFAS No. 106, annual postretirement healthcare benefit expenses will increase, due principally to interest on the $238,395,000 unfunded APBO.
 As required, previously reported 1992 quarterly results have been restated to reflect the adoption of SFAS Nos. 109 and 106. Prior year results have not been restated.
 Commenting on the Company's sales increases, Mr. John R. Stafford, chairman and chief executive officer, stated "sales for the 1992 fourth quarter and 12 months reflect the solid performance of our worldwide pharmaceutical and consumer health care businesses. Net sales of health care products increased 11 percent worldwide for the 1992 fourth quarter and 13 percent for the year with the increases principally attributable to unit volume growth."
 AMERICAN HOME PRODUCTS
 (dollars in thousands)
 3 Months Ended 12/31/92 12 Months Ended 12/31/92
 Percent Incr. Percent Incr.
 from 1991 from 1991
 Net Sales
 Pharmaceuticals $1,179,894 + 13 $ 4,589,274 + 14
 Consumer Health
 Care $ 393,925 + 7 $ 1,610,980 + 12
 Medical Supplies
 and Diagnostic
 Products $ 202,915 + 5 $ 807,651 + 5
 Total $1,776,734 + 11 $7,007,905 + 13
 U.S. pharmaceutical sales increased 13 percent for the fourth quarter and 14 percent for the twelve month period. Sales growth was led by the female health care and anti-inflammatory product categories. International pharmaceutical sales increased 13 percent for the fourth quarter and 14 percent for the year ended December 31, 1992, principally from increased sales of infant nutritional and female health care products.
 Consumer health care sales increased 7 percent and 12 percent worldwide for the 1992 fourth quarter and full year, respectively. The lower sales growth rate for the quarter, versus the year, reflects essentially flat cough/cold product sales.
 Net sales of food products increased 6 percent to $225,729,000 in the fourth quarter and 1 percent to $865,782,000, for the full year.
 AMERICAN HOME PRODUCTS CORPORATION
 FINANCIAL NEWS
 (In thousands except per share amounts)
 3 Months Ended (A) 12 Months Ended (A)
 12/31/92 12/31/91 12/31/92 12/31/91
 Net Sales $2,002,463 $1,819,805 $7,873,687 $7,079,443
 Income
 Before
 Taxes -
 Operations 500,687 464,036 1,944,070 1,759,810
 Special
 Charge (A) --- --- (220,000) ---
 Total 500,687 464,036 1,724,070 1,759,810
 Federal and
 Foreign Taxes
 on Income (B) 139,134 91,431 573,332 384,537
 Income Before
 Cumulative
 Effect of
 Changes in
 Accounting
 Principles 361,553 372,605 1,150,738 1,375,273
 Cumulative Effect
 of Change in
 Accounting:
 Income Taxes (B) --- --- 383,295 ---
 Postretirement
 Benefits
 Other Than
 Pensions (C) --- --- (73,191) ---
 Net Income $ 361,553 $ 372,605 $1,460,842 $1,375,273
 Earnings Per Share
 Income Before
 Cumulative Effect
 of Changes in
 Accounting
 Principles $1.16 $1.18 $3.66 $4.36
 Cumulative Effect
 of Changes in
 Accounting Principles
 - Income Taxes --- --- 1.22 ---
 - Postretirement
 Benefits Other
 Than Pensions --- --- (.23) ---
 Total $1.16 $1.18 $4.65 $4.36
 Average Number of
 Shares (D) 312,881 316,145 314,201 315,726
 (A) Results for the full year reflect the special charge and the accounting changes noted below and include the results of Intelligent Medical Systems ("IMS"), acquired on December 30 in a pooling of interests transaction. Prior year amounts were not restated for this acquisition as it is not material. Results for the fourth quarter reflect the impact of the accounting changes after adoption and the results of IMS. Results for the 1992 full year reflect a one-time charge of $220,000,000 for the portion of the purchase price of Genetics Institute, Inc. that represents acquired research. The charge was recorded retroactive to the first quarter, when the acquisition was consummated.
 (B) The tax provisions for the fourth quarter and 12 months ended Dec. 31, 1992 reflect the adoption of SFAS No. 109 retroactive to the first quarter of 1992. The new standard required the immediate recognition of the tax benefit related to the A.H. Robins net operating loss carryforward as of the beginning of the year and certain other tax benefits not previously recognized under SFAS No. 96.
 (C) Results for the 1992 full year reflect the adoption of SFAS
 (D) Average number of common shares outstanding during each period assuming full conversion of preferred stock.
 -0- 1/19/93
 /CONTACT: John L. Skule, 212-878-5015; or Investors, John R. Considine, 212-878-6429, both of American Home Products/
 (AHP)


CO: American Home Products ST: New York IN: HOU SU: ERN

LR -- NY020 -- 6190 01/19/93 09:52 EST
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Date:Jan 19, 1993
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