ICN BIOMEDICALS INC. ANNOUNCES YEAR-END EARNINGS
ICN BIOMEDICALS INC. ANNOUNCES YEAR-END EARNINGS COSTA MESA, Calif., April 3 /PRNewswire/ -- ICN Biomedicals Inc.
(AMEX: BIM) reported today a loss of $13.4 million in the fourth quarter of 1991 which included the results of a previously announced restructuring program.
The one-time after-tax charge of $6.1 million (principally non-cash items), taken to restructure the company's business for long-term profitability, is included in the loss of $12.9 million for the year ended Dec. 31, 1991, or $1.09 per share, compared to 1990's net income of $8.8 million, or 80 cents a share. The favorable impact of this restructuring is expected to be reflected later in 1992. In addition to the restructuring charge, the loss also included additional charges resulting from a reevaluation of the business to position ICN Biomedicals for competitive growth in the future. The restructuring program included a companywide work force reduction of approximately 15 percent, closure and consolidation of facilities which included most significantly the closure of manufacturing facilities in Milan, Italy and the consolidation of various other facilities. Also, as part of this effort to refocus business strategies and improve competitiveness, ICN Biomedicals is eliminating certain low-return product lines to shift to higher margin, more advanced products; consolidating suppliers and renegotiating certain contractual arrangements with suppliers. The 1991 sales of $96.5 million, compared to sales of $131.3 million in 1990, reflect the strategic actions to shift from low-margin product lines, to replace certain products with those more technologically advanced and to shift sales strategy from in-house sales representatives to a greater emphasis on catalog and distributors. In addition, the normal disruptions associated with restructuring and the overall economic climate contributed to the decline of sales and income. In 1991, the company discontinued a number of low-margin and low- technology product lines acquired through Flow Laboratories and began replacing them with ICN Biomedicals Inc. core products. It introduced a new drug-filter paper blood spot radioimmunoassay diagnostic for drug abuse testing; an advanced line of microplates used in conjunction with non-isotopic immunoassay systems, and a series of advanced electronic single and multichannel pipettes. Fourth quarter sales of $20.8 million compared to $31.9 million in 1990. The fourth quarter loss of $13.4 million, or $1.12 a share, compared to net income of $1.3 million, or 12 cents a share in last year's fourth quarter. The company reduced debt by $26 million in 1991. Additionally, at year end it issued approximately 3.4 million shares of its common stock to ICN Pharmaceuticals in exchange for approximately $18 million debt owed to ICN. In the first quarter of 1992, the company obtained a commitment to transfer an additional $16 million of debt to ICN. As previously announced, Biomedicals switched to a calendar year, ended Dec. 31, 1991. ICN Biomedicals Inc., listed on the American Stock Exchange under the symbol BIM, is a major world supplier of biotechnology research products and medical diagnostics. ICN BIOMEDICALS INC. Summary Financial Information For the periods ended Dec. 31, 1991 and Nov. 30, 1990 (Amounts in thousands) Fourth Quarter Fiscal Year 1991 1990 1991 1990 Sales $20,828 $31,854 $96,507 $131,259 Net income (loss) (13,399) 1,312 (12,892) 8,802 Earnings per share ($1.12) $.12 ($1.09) $.80 -0- 4/3/92 /CONTACT: Paul Knopick of ICN Biomedicals, 714-545-0100, ext. 2465/ (BIM) CO: ICN Biomedicals Inc. ST: California IN: MTC SU: ERN
AL -- LA028 -- 4975 04/03/92 16:02 EST
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|Date:||Apr 3, 1992|
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