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 ARDSLEY, N.Y., Sept. 1 /PRNewswire/ -- Ciba-Geigy Limited of Basel, Switzerland, has announced its results for the first half of 1993.
 As expected, in the first half of 1993 sales of the Ciba Group remained 2 percent below those of the corresponding period of 1992 (Swiss francs 11,850 million as opposed to SFr 12,297 million; a detailed summary of the divisional results follows.)
 Despite the somewhat lower sales, it was possible to maintain profit after taxes at virtually the same level as that of the corresponding 1992 period. Net profit was SFr. 1,413 million as opposed to SFr 1,410 million in 1992. (The consolidated profit and loss account also follows).
 Sustained Profits Thanks to Effective Cost and Asset Management
 This result was possible because of determined implementation of structural adjustments, productivity improvements, and stringent cost and asset management. Specifically, key action in the following areas was initiated or continued:
 -- The pharmaceuticals division in the United States reduced staffing by about 700
 -- The pharmaceuticals division's headquarters in Basel, announced a reorganization with the key objectives of better aligning R&D strategies and resources in the Triad countries (Europe, North America, and Southeast Asia), reducing item to market for new products, and adapting cost structures to the new market realities.
 -- The plant protection division initiated additional programs to adapt its organization and cost structures to shrinking markets in several European countries, and
 -- The industry divisions successfully continued their restructuring programs.
 Healthcare With Above-Market Growth on a Comparable Basis
 The Healthcare sector reports sales of SFr 4,335 million, a 2 percent increase in local currencies over the first six months of 1992 and no growth in Swiss francs.
 The true sales performance of the Pharmaceuticals Division, however, is masked by the effects of the 1992 U.S. Habitrol(R) launch. While the division reports a decline of 4 percent in local currencies, on a comparable basis (i.e. disregarding the Habitrol effect), Pharmaceuticals sales grew by 10 percent, which is well-above estimated market growth of 6 percent. Self-Medication, Diagnostics and Ciba Vision also achieved sales growth above market expansion rates.
 The Pharmaceuticals Division's good sales performance will become much more visible during the second half of 1993, as the distorting U.S. Habitrol effect largely disappears. For the full year, the Pharmaceuticals Division expects to show sales above 1992 levels. To defend margins and profitability, divisional structures will be adapted to meet new market realities. The three smaller divisions in the Healthcare sector should continue their rapid expansion.
 Agriculture Strengthening in the United States but Sliding in Europe
 The Agriculture sector closed the first half of 1993 with sales of SFr 3,089 million, 5 percent below the corresponding 1992 period in local currencies, or 7 percent lower in Swiss francs.
 The two large agricultural markets, the United States and Europe, show two very different situations. Sales developed in line with last year's good performance in the United States. On the other hand, the EC's Common Agricultural Policy is leading to a reduction in acreage in its member countries, notably France and Germany. And here, the Plant Protection Division in particular saw a sales decline which could not be compensated elsewhere. Animal Health was able to maintain its position, while seeds lost some ground in the United States.
 Because of a continued favorable development in the United States and a good outlook in the Southern Hemisphere, full-year sales for Plant Protection are expected to come close to the previous year. Some decline in margin may not be fully compensated during the rest of the year. However, comprehensive measures to adapt business structures, particularly in Europe, are being implemented.
 Lean Industry Sector Preparing for the Pick-Up
 The Industry sector achieved sales of SFr 4,426 million, which is 3 percent below the first half of 1992 in local currencies and 5 percent below in Swiss francs.
 The sector came close to last year's sales despite the fact that Germany was entering further into recession. Japan and most of Europe remained weak, while the United States saw a slow recovery. In some Latin American countries and in Southeast Asia, a very satisfactory performance was achieved.
 Most of the industry divisions expect sales close to or somewhat above the previous year's level for the full year 1993. Only Composites forecasts a sizable sales reduction because of the crisis in the aerospace industry.
 Ciba's streamlined Industry sector with its leaner structures and strong market position will clearly benefit from a broader business cycle pick-up. This will not only lead to increased sales but should also translate into better profitability.
 Confident Outlook
 "We knew that 1993 would not be an easy year," commented Alex Krauer, chairman and chief executive officer, Ciba-Geigy Limited. "Results achieved in a difficult environment, however, strengthen our confidence that our strategies are on the right track. Barring unforeseen events or market developments, we still expect higher profits for 1993 as a whole, but the improvement will be limited by the present unfavorable conditions of our business environment."
 International Accounting Standards
 On Jan. 1, 1993, Ciba switched to International Accounting Standards (IAS) for its worldwide consolidated accounting and reporting. As data reported under the previous accounting system is not comparable with IAS information, for comparison purposes Ciba published an IAS-based restatement of 1992 actual for the full year on June 15, 1993. To facilitate comparisons further, the first half year 1992 data has also been restated in the financial report. These restatements reflect estimates of accounting professionals and therefore should not be regarded as exact information.
 Sales (In millions SFr rounded)
 1993 1992(A) Pct. Change from
 1st half 1992
 First First
 six six
 months months
 Actual SFr Local
 Currency Currency
 Healthcare Sector
 Pharmaceuticals(B) 3,071 3,251 - 6 -4
 Self-Medication 472 451 5 9
 Diagnostics(C) 294 233 26 26
 Ciba Vision(D) 498 414 20 21
 Total 4,335 4,349 0 2
 Agriculture Sector
 Plant Protection 2,682 2,883 - 7 - 5
 Animal Health 235 240 - 2 0
 Seeds 172 189 - 9 - 6
 Total 3,089 3,312 - 7 - 5
 Industry Sector
 Textile Dyes 744 772 - 4 - 1
 Chemicals 668 690 - 3 0
 Additives(E) 1,067 1,098 - 3 - 2
 Pigments(F) 559 563 - 1 2
 Polymers 637 688 - 7 - 5
 Composites 218 274 -21 -19
 Mettler Toledo 533 551 - 3 - 2
 Total 4,426 4,636 - 5 - 3
 Group 11,850 12,297 - 4 - 2
 (A) First half 1992 sales restated according to IAS (International Accounting Standards).
 (B) Without Habitrol in the United States: growth 10 percent in local currencies.
 (C) Covers period from December 1992 to May 1993.
 (D) Without acquisition, growth 14 percent in local currencies.
 (E) Without divestiture, growth 4 percent in local currencies.
 (F) Without Glass and Ceramics, growth 9 percent in local currencies.
 Ciba-Geigy Corporation
 Consolidated Profit and Loss Account for the Period from
 Jan. 1 to June 30, 1993
 (All figures in SFr millions)
 First Six Months
 1993 1992(A)
 Net turnover 11,850 12,300
 Cost of sales 5,261 5,550
 Gross profit 6,589 6,750
 Marketing and distribution 1,979 1,950
 Research and development 1,047 1,020
 General, administration,
 and other expenses 1,621 1,650
 Total expenses 4,647 4,620
 Operating profit 1,942 2,130
 Financial income 282 260
 Financial expenses 232 250
 Currency and hedging transactions
 gains/(losses) 44 0
 Minority interest 4 0
 Net financial income/(expenses) 90 10
 Profit on ordinary activities
 before taxation 2,032 2,140
 Tax on profit on ordinary activities 619 610
 Profit on ordinary activities
 after taxation 1,413 1,530
 Extraordinary items, net of tax 0 120
 Net profit 1,413 1,410
 (A) The 1992 restated data include, as an extraordinary item, the net after-tax effects of the sale of one of the Additives businesses and of the restructuring program of the Textile Dyes Division.
 Ciba-Geigy Corporation's midyear 1993 sales of $2.4 billion are down 7 percent from the comparable period last year. Sales results for the Healthcare, Agricultural and Industrial groups are presented below.
 U.S. Sales in Millions
 Midyear Pct. Change
 1993 1992
 Healthcare Group $830 $994 -17
 - Pharmaceuticals
 - CIBA Vision Corporation
 - Ciba Consumer Pharmaceuticals
 Agricultural Group $843 $861 - 2
 - Plant Protection
 - Seeds
 - Animal Health
 Industrial Group $720(A) $721(B) 0
 - Additives
 - Textile Products
 - Polymers
 - Pigments
 - Chemicals
 - Composites
 Total corporation $2,393 $2,576 - 7
 (A) Includes three months of sales for Drakenfeld Colors, which was transferred to Cerdec, a joint venture company owned 30 percent by Ciba- Geigy Limited and 70 percent by Degussa AG of Frankfurt, Germany.
 (B) Includes two months of sales for the Water Chemicals business, which has been divested by the Additives Division.
 Ciba is a leading developer and manufacturer of healthcare, agricultural and industrial products. The company is committed to its integrated vision of social, economic and environmental responsibilities. It is a wholly owned subsidiary of Ciba-Geigy Limited of Basel, Switzerland. Both companies are known as Ciba.
 -0- 9/1/93
 /CONTACT: Susan Warner of Ciba-Geigy Corporation, 914-479-4050/

CO: Ciba-Geigy Corporation ST: New York IN: HEA SU: ERN

CK-OS -- NY018 -- 7912 09/01/93 11:24 EDT
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Date:Sep 1, 1993

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