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IMCERA REPORTS 19 PCT. INCREASE IN FISCAL 1994 FIRST QUARTER PER SHARE EARNINGS FROM CONTINUING OPERATIONS, EXCLUDING A NONRECURRING TAX CREDIT

 NORTHBROOK, Ill., Oct. 15 /PRNewswire/ -- IMCERA Group Inc. (NYSE: IMA) today reported fiscal 1994 first quarter earnings from continuing operations of $35.3 million, or 45 cents per share, compared with $27.6 million, or 36 cents per share, last year. This represents a 19 percent increase in per-share earnings after excluding a nonrecurring favorable adjustment in this year's first quarter of $1.4 million, or 2 cents per share, from recently enacted tax law changes.
 Net earnings for the quarter were $34.5 million, or 44 cents per share, compared with a net loss in last year's first quarter of $53.5 million, or 69 cents per share. Last year's net loss included an after-tax charge of $80.6 million, or $1.04 per share, from the adoption of certain accounting standards that involved employee benefit plans and income taxes.
 Net sales in the quarter rose 7 percent to $444.9 million, compared with $416.8 million a year earlier.
 "This quarter's results were a first and significant step in our program to resume sustained growth and profitability and produce excellent shareholder value," said C. Ray Holman, IMCERA president and chief executive officer. "All three of IMCERA's businesses contributed to the solid first quarter.
 "Mallinckrodt Medical achieved operating earnings of $46.7 million, a 19 percent increase over last year's $39.3 million, while net sales of $200.9 million were 14 percent higher than $175.5 million a year ago," Holman said. "All sectors of this business contributed to the improvement. Acquisitions in 1993 were important factors in improved results for anesthesiology and critical care. Higher volumes for Optiray in the U.S. and overseas more than offset the effects of price competition.
 "Mallinckrodt Specialty Chemicals earnings, including a $3.8 million equity-investment share from its flavors joint venture, rose to $11.8 million, up 53 percent compared with $7.7 million a year ago," he said. "Net sales were $102.5 million, an increase of 10 percent. Strong analgesics sales, led by medicinal narcotics, coupled with improvements in the catalysts, performance and lab chemicals segment and in flavors were keys to the quarter's growth.
 "Pitman-Moore's first quarter operating earnings were $13.7 million, compared with last year's $11.4 million, a 20 percent increase," Holman said. "Net sales declined 4 percent, all of which was a function of changes in foreign exchange rates. The operating earnings improvement reflects significantly better North American performance from selling and administrative efficiencies and higher sales; improved Latin American sales, particularly in Brazil; and lower headquarters administrative costs."
 A Fortune 250 company with fiscal 1993 sales of nearly $1.8 billion, IMCERA provides human and animal health care products and specialty chemicals through its three international, technology-based businesses: Mallinckrodt Medical of St. Louis; Mallinckrodt Specialty Chemicals of Chesterfield, Mo.; and Pitman-Moore of Mundelein, Ill.
 IMCERA GROUP INC.
 Quarter ended Sept. 30
 ($ in millions except per share amounts)
 1993 1992(B)
 Sales $444.9 $416.8
 Earnings from continuing operations 35.3(A) 27.6
 Discontinued operations (.8) (.5)
 Cumulative effects of accounting changes -- (80.6)
 Net earnings (loss) 34.5 (53.5)
 Preferred stock dividends (.1) (.1)
 Amount available for common shareholders $ 34.4 $(53.6)
 Earnings (loss) per common share:
 Continuing operations $ .45 $ .36
 Discontinued operations (.01) (.01)
 Accounting changes -- (1.04)
 Net earnings (loss) $ .44 $ (.69)
 Average number of common shares
 outstanding 77,368,000 77,397,000
 (See accompanying notes to interim financial results)
 IMCERA GROUP INC.
 Consolidated Sales and Operations
 ($ in millions except per share amounts)
 Quarter Ended
 Sept. 30
 1993 1992(B)
 Sales:
 Mallinckrodt Medical $200.9 $175.5
 Mallinckrodt Specialty Chemicals 102.5 93.1
 Pitman-Moore 142.1 148.3
 Intersegment sales (.6) (.1)
 Total 444.9 416.8
 Operating earnings:
 Mallinckrodt Medical 46.7 39.3
 Mallinckrodt Specialty Chemicals 8.0 5.8
 Pitman-Moore 13.7 11.4
 Corporate (7.6) (6.4)
 Eliminations .1
 Total 60.9 50.1
 Equity in pretax earnings of joint venture 3.8 1.9
 Interest and other
 non-operating income (expense), net (.6) .3
 Interest charges (8.6) (8.9)
 Earnings from continuing operations
 before income taxes 55.5 43.4
 Income tax provision 20.2(A) 15.8
 Earnings from continuing operations 35.3 27.6
 Discontinued operations (.8) (.5)
 Cumulative effects of accounting changes -- (80.6)
 Net earnings (loss) 34.5 (53.5)
 Preferred stock dividends (.1) (.1)
 Amount available for common shareholders $ 34.4 $(53.6)
 Earnings (loss) per common share:
 Continuing operations $ .45 $ .36
 Discontinued operations (.01) (.01)
 Accounting changes (1.04)
 Net earnings (loss) $ .44 $ (.69)
 Average number of common shares
 outstanding 77,368,000 77,397,000
 (See accompanying notes to interim financial results)
 IMCERA GROUP INC.
 Notes to Interim Financial Results
 (A) -- The income tax provision for the first quarter of fiscal 1994 included a nonrecurring favorable adjustment of $1.4 million, or 2 cents per share, from recently enacted tax law changes. Excluding that favorable adjustment, the effective tax rate would have been 39.0 percent compared to 36.4 percent last year.
 (B) -- In the fourth quarter of 1993 IMCERA adopted Statements of Financial Accounting Standards (FAS) No. 106, "Employer's Accounting for Postretirement Benefits Other Than Pensions"; No. 109, "Accounting for Income Taxes"; and No. 112, "Employer's Accounting for Postemployment Benefits," all retroactive to July 1, 1992. Fiscal 1993 results have been restated to reflect the effects of adoption of these standards.
 IMCERA GROUP INC.
 Net Sales
 ($ in millions)
 Quarter Ended
 Sept. 30
 1993 1992
 Mallinckrodt Medical:
 Radiology & Cardiology $96.1 $89.5
 Nuclear Medicine 42.6 42.7
 Anesthesiology & Critical Care 62.2 43.3
 Total 200.9 175.5
 Mallinckrodt Specialty Chemicals:
 Pharmaceutical Specialties 57.8 50.5
 Catalyst, Performance & Lab Chemicals 44.7 42.6
 Total 102.5 93.1
 Pitman-Moore:
 Pharmaceuticals 61.8 64.2
 Biologicals 21.5 24.1
 Feed Ingredients 38.7 39.7
 Veterinary Specialties & Other 20.1 20.3
 Total 142.1 148.3
 Intersegment sales (.6) (.1)
 $444.9 $416.8
 -0- 10/15/93
 /CONTACT: Dave Prichard of IMCERA, 708-205-2270/
 (IMA)


CO: IMCERA Group Inc. ST: Illinois, Missouri IN: HEA CHM SU: ERN

GK -- NY012 -- 2606 10/15/93 09:05 EDT
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Date:Oct 15, 1993
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