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IMCERA REPORTS 7 PERCENT DECREASE IN PER-SHARE EARNINGS FROM CONTINUING OPERATIONS IN 3RD QUARTER, REVIEWS PROGRAM TO IMPROVE PITMAN-MOORE

 NORTHBROOK, Ill., April 19 /PRNewswire/ -- IMCERA Group Inc. (NYSE: IMA) today reported earnings from continuing operations for the third quarter of $30.6 million, or 39 cents per share, a 7 percent decrease in per-share earnings compared with $32.6 million, or 42 cents per share, a year ago.
 This result is consistent with IMCERA's comments about the third quarter outlook in an announcement on March 9.
 Net earnings for the third quarter were $29.9 million, or 38 cents per share, compared with $32.4 million, or 41 cents per share a year earlier.
 Sales in the third quarter were $439.9 million, up 1 percent compared with $433.5 million last year.
 For the nine months, earnings from continuing operations were $87.3 million, or $1.12 per share, compared with $86.0 million, or $1.10 per share, last year.
 Net earnings for the nine months were $85.1 million, or $1.10 per share, compared with $83.8 million, or $1.07 per share, a year ago.
 Nine-month sales were $1,297.9 million, a 5 percent improvement over $1,235.0 million last year.
 "The performance of Mallinckrodt Medical in the third quarter continued to be excellent, with operating earnings of $43.8 million, up 31 percent from last year on a sales increase of 21 percent," said C. Ray Holman, IMCERA president and chief executive officer. "Principal contributors to the improved performance were the nonionic x-ray contrast medium Optiray, anesthesiology and critical care.
 "Mallinckrodt Specialty Chemicals, including its equity-investment share of earnings from its flavors joint venture, reported third quarter earnings of $14.1 million, a $6.5 million decrease from last year, with sales also below the prior year," Holman said.
 "Delayed catalyst, performance chemical and peptide sales, weak international demand for PAP, and higher waste treatment costs incurred while expanding acetaminophen manufacturing capacity were the major factors in the earnings decline," Holman said. "As expected, earnings from flavors operations stepped up significantly over results in prior fiscal 1993 quarters.
 "Pitman-Moore's third quarter operating earnings were $6.5 million, a decrease of $6.4 million from last year's reported result, on a 4 percent sales decline," Holman said. "The performance variance resulted primarily from generally higher manufacturing costs, delayed restart of certain plant operations, and lower North American and European sales volumes. In addition, price pressures and lower volumes in feed ingredients adversely affected comparative third quarter sales and earnings.
 "As previously announced, Pitman-Moore's management is developing an aggressive program to improve performance," Holman said. "Although extensive work remains before we can determine the full extent of the restructuring measures and quantify the impact, the program is on schedule for a fiscal year-end resolution, and we will implement each program step at the earliest appropriate opportunity."
 Holman said, "Restructuring and its associated fiscal 1993 fourth quarter charge is expected to be significant and will be composed of major, discrete actions intended to improve and sustain future earnings prospects and profitability, the greatest part of which we believe will relate to Pitman-Moore.
 "We will continue to expeditiously move ahead with this program," Holman said, "which should strengthen Pitman-Moore's market position in a highly competitive environment.
 "We are absolutely committed to returning IMCERA to superior growth next year and beyond," Holman stressed.
 Additionally, Holman reiterated that early adoption of new financial accounting standards known as FAS 106, 109 and 112 in IMCERA's fourth quarter is still "under consideration," but that a decision will not be made until May or June.
 A Fortune 250 company with fiscal 1992 net sales of more than $1.7 billion, IMCERA provides human and animal health care products and specialty chemicals through its three international, technology-based businesses -- Mallinckrodt Medical of St. Louis; Mallinckrodt Specialty Chemicals of Chesterfield, Mo.; and Pitman-Moore of Mundelein, Ill.
 IMCERA GROUP INC.
 ($ in millions except per share amounts)
 Quarter ended March 31 1993 1992
 Sales $439.9 $433.5 (B)
 Earnings from continuing operations $30.6 $32.6 (C)
 Discontinued operations (.7)(E) (.2)(E)
 Net earnings 29.9 32.4
 Preferred stock dividends .1 .1
 Amount available for common shareholders $29.8 $32.3
 Earnings per common share
 Continuing operations $.39 $.42
 Discontinued operations (.01) (.01)
 Net earnings $.38 $.41
 Average number of common
 shares outstanding 77,206,000 78,017,000
 Nine months ended March 31 1993 1992
 Sales $1,297.9 $1,235.0 (B)
 Earnings from continuing operations $87.3 (A) $86.0 (C)(D)
 Discontinued operations (2.2)(E) (2.2)(E)
 Net earnings 85.1 83.8
 Preferred stock dividends .3 .3
 Amount available for common shareholders $84.8 $83.5
 Earnings per common share
 Continuing operations $1.12 $1.10
 Discontinued operations (.02) (.03)
 Net earnings $1.10 $1.07
 Average number of common
 shares outstanding 77,385,000 77,916,000
 IMCERA GROUP INC.
 Consolidated Sales and Earnings
 ($ in millions except per share amounts)
 Periods ended Quarter Nine months
 March 31 1993 1992 1993 1992
 Sales
 Mallinckrodt Medical $190.1 $157.5 $558.8 $439.1
 Mallinckrodt
 Specialty Chemicals 101.7 121.5 (B) 285.9 333.7(B)
 Pitman-Moore 148.2 154.5 453.4 462.3
 Intersegment sales (.1) -- (.2) (.1)
 Total $439.9 $433.5 $1,297.9 $1,235.0
 Operating earnings
 Mallinckrodt Medical $43.8 $33.4 $127.8 $91.0
 Mallinckrodt
 Specialty Chemicals 10.9 19.1 (B) 29.2 37.4(B)
 Pitman-Moore 6.5 12.9 (C) 29.2 46.9(C)
 Corporate (9.9) (6.4) (28.4)(A) (20.4)
 Eliminations -- (.1) -- (.5)
 Total 51.3 58.9 157.8 154.4
 Equity in pretax earnings
 of joint venture 3.2 (B) 1.5 (B) 6.0 (B) 1.5(B)
 Interest and other
 nonoperating income
 (expense), net 1.6 (.7) 2.1 10.8(D)
 Interest charges (9.6) (9.5) (28.6) (30.3)
 Earnings from
 continuing operations
 before income taxes 46.5 50.2 137.3 136.4
 Income taxes 15.9 17.6 50.0 50.4
 Earnings from
 continuing operations 30.6 32.6 87.3 86.0
 Discontinued operations (.7)(E) (.2)(E) (2.2)(E) (2.2)(E)
 Net earnings 29.9 32.4 85.1 83.8
 Preferred stock dividends .1 .1 .3 .3
 Amount available for
 common shareholders $29.8 $32.3 $84.8 $83.5
 Earnings per common share
 Continuing operations $.39 $.42 $1.12 $1.10
 Discontinued operations (.01) (.01) (.02) (.03)
 Net earnings $.38 $.41 $1.10 $1.07
 Average number of common
 shares outstanding 77,206,000 78,017,000 77,385,000 77,916,000
 (A) -- Corporate expense for the nine months of fiscal 1993 included $5.5 million, $3.4 million after taxes, or $.04 a share, from executive resignations resulting from the performance of Pitman-Moore.
 (B) -- Effective Feb. 1, 1992, the Fries & Fries, Inc. unit of Mallinckrodt Specialty Chemicals Company and Hercules Incorporated's flavors businesses were combined to form a 50/50 joint venture partnership. Results subsequent to the formation of the joint venture were recorded on a pretax equity basis. Related income taxes were included in IMCERA's consolidated income tax provision.
 Additionally, certain non-strategic businesses were divested. Given these changes, operating results have been restated below to an ongoing basis to better characterize performance.
 Quarter Ended Nine Months Ended
 March 31 March 31
 1993 1992 1993 1992
 Net sales:
 Ongoing operations $101.7 $103.7 $285.9 $261.1
 Divested operations
 and Flavors business 17.8 72.6
 $101.7 $121.5 $285.9 $333.7
 Operating earnings:
 Ongoing operations $10.9 $16.7 $29.2 $24.4
 Divested operations
 and Flavors business 2.4 13.0
 Total $10.9 $19.1 $29.2 $37.4
 (C) -- Results for fiscal 1992's third quarter included costs associated with deficiencies in technical manufacturing controls at Pitman-Moore's Kansas City, Kan., manufacturing facility which negatively impacted results by $3.9 million, $2.5 million after taxes, or $.03 a share. In fiscal 1993, the company resumed the production and sale of a portion of the non-sterile pharmaceutical products with full production expected by the end of the fiscal year. Sterile pharmaceutical operations are under review, with management's earliest expectation for start-up being mid to late calendar 1994, subject to quality and regulatory certification.
 (D) -- Results for the nine months of fiscal 1992 included a pretax gain of $7.0 million, $4.4 million after taxes, or $.05 a share, from the sale of an investment.
 (E) -- Fiscal 1993 net charges for discontinued operations were primarily for litigation-related costs for previously discontinued operations. Fiscal 1992 net charges were primarily from the effects of the disposal of the balance of IMCERA's investment in IMC Fertilizer Group, Inc.
 IMCERA GROUP INC.
 NET SALES
 ($ in millions)
 Periods ended Quarter Nine Months
 March 31 1993 1992 1993 1992
 Mallinckrodt Medical
 Radiology & Cardiology $90.8 $73.6 $276.0 $206.4
 Nuclear Medicine 44.6 41.9 133.8 115.2
 Anesthesiology
 & Critical Care 54.7 42.0 149.0 117.5
 Total 190.1 157.5 558.8 439.1
 Mallinckrodt Specialty
 Chemicals (A)
 Ongoing operations
 Pharmaceutical
 Specialties 58.7 55.5 154.4 129.9
 Catalyst, Performance
 & Lab Chemicals 43.0 48.2 131.5 131.2
 Total 101.7 103.7 285.9 261.1
 Divested operations
 and Flavors business -- 17.8 -- 72.6
 Total 101.7 121.5 285.9 333.7
 Pitman-Moore
 Animal Productivity 8.2 10.8 32.3 38.2
 Antimicrobials 14.8 14.8 46.2 53.0
 Biologicals 27.6 28.6 77.1 73.4
 Parasiticides 34.2 33.3 107.7 107.1
 Veterinary
 Specialties & Other 21.4 21.2 61.8 59.5
 Total Animal Health 106.2 108.7 325.1 331.2
 Feed Ingredients 42.0 45.8 128.3 131.1
 Total 148.2 154.5 453.4 462.3
 Intersegment sales (.1) -- (.2) (.1)
 Total $439.9 $433.5 $1,297.9 $1,235.0
 (A) -- Prior year amounts for Mallinckrodt Specialty Chemicals have been restated for comparability.
 -0- 4/19/93
 /CONTACT: Dave Prichard of IMCERA Group, 708-205-2270/
 (IMA)


CO: IMCERA Group Inc. ST: Illinois IN: MTC SU: ERN

TS -- NY030 -- 7173 04/19/93 08:45 EDT
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Date:Apr 19, 1993
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