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MARION MERRELL DOW ANNOUNCES SECOND-QUARTER 1993 EARNINGS

 KANSAS CITY, Mo., July 21 /PRNewswire/ -- Marion Merrell Dow Inc. (NYSE: MKC) today announced that second-quarter 1993 sales and earnings, excluding a special charge announced last week, improved from the first quarter of 1993 but were substantially lower than a year earlier.
 As announced on July 14, a special charge of $180 million was recorded as a pretax expense in the company's income statements for the three-month and six-month periods ended June 30, 1993. The charge reflects the impact of a number of steps, including the company's plans to reduce its work force in line with current business conditions; to redesign its U.S. business organization following a yearlong study to better meet customer needs, especially in the growing managed care segment; to focus Research and Development on the highest-priority projects in the new-product pipeline; and to implement other steps to position the company for the future.
 Net sales for the second quarter were $750 million, 17 percent lower than in the comparable period a year ago. Without the special charge, net income would have been $158 million, down 20 percent from a year earlier, and earnings per share would have been 56 cents, 20 percent lower than a year ago. With the charge, net income was $29 million and earnings per share were 10 cents.
 "Our results improved from the first quarter, on an ongoing basis. More importantly, the realignment that we began in the second quarter will reduce our cost structure for the future, help us serve our customers better and enable us to develop key opportunities as the decade progresses," said Fred W. Lyons, Jr., president and chief executive officer.
 For the first six months of 1993, net sales were $1.4 billion, versus $1.7 billion in the year-earlier period. First-half net income without the special charge would have been $232 million, down 40 percent from the first half of 1992, for earnings per share of 83 cents, 35 percent lower. With the special charge, first-half 1993 net income was $103 million and earnings per share were 37 cents.
 The Cardizem(R) family of cardiovascular products recorded second- quarter sales of $210 million, 9 percent lower than a year earlier. Second-quarter sales of once-a-day Cardizem(R) CD, which costs patients less per day than older forms of Cardizem, were $125 million, up 166 percent from a year earlier. Based on the broad acceptance of Cardizem CD, now accounting for most of the sales in this brand, the company believes it is successfully limiting erosion from generic competition for immediate-release Cardizem tablets.
 Sales of the Seldane(R) (terfenadine) family experienced a strong seasonal increase with the spring allergy period in the United States and abroad, but remained substantially below the very strong sales of early 1992. Second-quarter sales of terfenadine, the world's No. 1 nonsedating antihistamine, were $263 million, 11 percent lower than a year ago.
 Sales of Marion Merrell Dow's smoking cessation products, the Nicoderm(R) patch and Nicorette(R) gum, totaled $40 million in the quarter, 60 percent lower than a year earlier, reflecting the U.S. market's decline from early 1992, when three nicotine patches were being launched simultaneously. Nicoderm recorded $24 million in second- quarter sales, 71 percent lower than a year ago. Nicorette sales were $16 million, down 6 percent. Nicoderm is now America's most frequently prescribed smoking cessation aid.
 Sales of Carafate(R), the company's unique antiulcer drug, were $45 million in the second quarter, 7 percent higher than a year earlier.
 The second-quarter sales comparison to a year ago also was affected by the shift of U.S. consumer product sales (which totaled $28 million in the second quarter of 1992) to the company's partnership with SmithKline Beecham. The company receives a share of the profits from the partnership but no longer records sales or costs associated with those products.
 Marion Merrell Dow announced two strategic transactions in the second quarter, indicating progress in its efforts to improve the business for the coming years:
 -- An agreement in principle to acquire the generic drug business of privately held Rugby-Darby Group Cos. Inc., the country's largest generic drug company. The acquisition, which is subject to completion of a definitive agreement, is expected to further bolster Marion Merrell Dow's position as a leader in providing pharmaceutical products to cost- conscious buyers in the retail sector and the managed care market.
 -- An agreement acquiring rights to two cardiovascular drugs developed by Merck & Co. Inc., which are currently in Phase III clinical trials. Included is a once-a-day combination product for the treatment of hypertension (high blood pressure), combining a variation of the active ingredient in Marion Merrell Dow's Cardizem line with the active ingredient in Merck's Vasotec(R) to give patients the benefits of two modes of action in one tablet.
 In the second quarter, Marion Merrell Dow received a U.S. regulatory go-ahead to market Pentasa(R) for the treatment of ulcerative colitis, the most common form of inflammatory bowel disease. Internationally, approvals included the go-ahead in Australia for Sabril(R), an important new therapy for epilepsy not satisfactorily controlled by other medications; in the United Kingdom, for an expanded indication of Sabril as a first add-on therapy; and in Australia for Nicabate(R), the Australian trade name for the Nicoderm patch, to help people stop smoking as part of a program of counseling and behavioral changes; among others.
 Marion Merrell Dow is a research-based global pharmaceutical organization dedicated to improving the longevity and quality of human life. The company is involved in the discovery, development, manufacture and sale of pharmaceutical products worldwide.
 MARION MERRELL DOW INC.
 CONSOLIDATED STATEMENTS OF INCOME(a)
 Three and Six Months Ended June 30
 (Amounts in Millions, Except for Per Share Data)
 For the Three Months For the Six Months
 Ended June 30, Ended June 30,
 1993 1992 1993 1992
 Net sales $750 $906 $1,367 $1,685
 Cost of sales 160 215 314 392
 Gross profit 590 691 1,053 1,293
 Operating expenses:
 Research and
 development 115 125 214 228
 Selling, general
 and administrative 270 286 539 539
 Special Charge 180 --- 180 ---
 Total operating
 expenses 565 411 933 767
 Operating income 25 280 120 526
 Other income, net 21 19 35 32
 Interest expense 4 2 6 5
 Income before
 income taxes 42 297 149 553
 Income taxes 13 100 46 189
 Income before cumulative
 effects of changes in
 accounting principles 29 197 103 364
 Cumulative effect of
 change in accounting
 principle -
 income taxes --- --- --- 54
 Cumulative effect of
 change in accounting
 principle - postretirement
 benefits --- --- --- (33)
 Net income 29 197 103 385
 Less preferred stock
 dividends 1 2 3 3
 Net income available to
 common shareholders $28 $195 $100 $382
 Weighted average number of
 outstanding common shares -
 assuming full dilution 277 281 277 282
 Earnings per share, before
 cumulative effect of changes
 in accounting principles -
 assuming full dilution $.10 $.70 $.37 $1.29
 Per share cumulative effect
 of change in accounting
 principle - income taxes --- --- --- .19
 Per share cumulative effect
 of change in accounting
 principle - postretirement
 benefits --- --- --- (.12)
 Earnings per common share -
 assuming full dilution $.10 $.70 $.37 $1.36
 Cash dividends per
 common share $.25 $.25 $.50 $.48
 (a) Unaudited data
 -0- 7/21/93
 /CONTACT: David M. Thompson or Richard M. Johnson of Marion Merrell Dow, 816-966-4000/
 (MKC)


CO: Marion Merrell Dow Inc. ST: Missouri IN: MTC SU: ERN

BB -- DV001 -- 3740 07/21/93 08:12 EDT
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