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 KANSAS CITY, Mo., Oct. 20 /PRNewswire/ -- Marion Merrell Dow Inc. (NYSE: MKC) today announced that sales and earnings for the third quarter and nine months ending Sept. 30 were lower than a year earlier.
 Net sales for the quarter were $709 million, 15 percent lower than in the comparable 1992 period. Net income was $143 million, down 18 percent from a year earlier, and earnings per share were 51 cents, 19 percent lower than a year ago.
 For the first nine months of 1993, net sales were $2.1 billion, versus $2.5 billion a year ago. Nine month net income, excluding a second quarter special charge of $180 million relating to a reduction in staffing and other cost reduction efforts, was $375 million, down 33 percent from 1992, while earnings per share totaled $1.34, or 33 percent lower.
 Third-quarter sales for the Cardizem family of cardiovascular products were $250 million, 11 percent lower than a year earlier. Sales of once-a-day Cardizem CD, which have increased steadily since the first quarter of this year, continued strong in the third quarter, increasing 93 percent from the 1992 third quarter to $154 million. Sales of older forms of Cardizem declined from the previous year as some patients switched to the more convenient, less costly Cardizem CD and to generic products.
 Sales of the Seldane (terfenadine) family of antiallergy products contributed $191 million to third-quarter sales, a four percent decline from a year ago. Sales of Seldane tablets declined seven percent to $153 million. This performance was partially offset by a nine percent increase in Seldane-D sales which totaled $38 million. Terfenadine sales in Japan continued their rapid growth.
 Sales of Marion Merrell Dow's smoking cessation products were $31 million in the third quarter, off 56 percent from a year earlier. Sales of Nicorette gum were up 31 percent to $17 million, while the Nicoderm patch had sales of $14 million, a 76 percent decline, reflecting the continued soft demand for nicotine patches compared to 1992.
 Sales of Carafate, the company's unique antiulcer drug, were $51 million in the third quarter, declining 16 percent from a year ago due largely to continued competitive pressure.
 Shortly after the close of the third quarter, Marion Merrell Dow completed its acquisition of The Rugby Group, the United States' largest generic drug company. The company believes this acquisition will 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.
 "While we continue to manage the business for the best possible results during a period of difficult business conditions, our focus has been on positioning Marion Merrell Dow for long-term success," said Fred W. Lyons, Jr., president and chief executive officer. "We have now completed our acquisition of the largest generic drug company in America, reduced our work force and cut other expenses to bring them into line with current business conditions and started a realignment of our U.S. business organization to make Marion Merrell Dow a leader in the emerging new health care environment."
 During the quarter, the company announced plans for a transition in senior management, which will include the following moves effective Jan. 1, 1994:
 Joseph G. Temple, Jr., chairman of the board, will step down from that position but remain a member of the board of directors of both Marion Merrell Dow and The Dow Chemical Company.
 Fred W. Lyons, Jr., president and chief executive officer of Marion Merrell Dow, will assume the position of chairman of the board and will continue as chief executive officer.
 David B. Sharrock, executive vice president and chief operating officer, will retire after 35 years with Marion Merrell Dow and its predecessor companies. He will remain on the company's board of directors.
 Richard J. Markham, former president and chief operating officer of Merck & Co., Inc., joined Marion Merrell Dow Oct. 1, 1993, to become president and chief operating officer by Jan. 1, 1994. He was elected to the board of directors effective Oct. 18, 1993.
 New-product approvals in the third quarter included Cardizem Injectable in Canada, Vasocardol CD (Cardizem CD) in New Zealand and Teldafen (Seldane-D) in Belgium. In the U.S., the company also launched Pentasa, a product which meets a significant therapeutic need for patients with ulcerative colitis.
 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.
 Consolidated Statements of Income
 (Unaudited, amounts in millions of dollars, except per share data)
 Periods ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 Net sales $709 $838 $2,076 $2,523
 Cost of sales 194 222 508 614
 Gross profit 515 616 1,568 1,909
 Operating expenses:
 Research and development 115 109 329 337
 Selling, general and
 administrative 232 264 771 803
 Special Charge 0 0 180 0
 Total operating expenses 347 373 1,280 1,140
 Operating income 168 243 288 769
 Other income, net 31 18 65 50
 Interest expense 3 2 9 7
 Income before income
 taxes & cumulative
 effect of changes in
 accounting principles 196 259 344 812
 Income taxes 53 84 98 273
 Income before cumulative
 effect of changes
 in accounting principles 143 175 246 539
 Cumulative effect of
 change in accounting
 principle - income taxes 0 0 0 54
 Cumulative effect of change
 in accounting principle
 - postretirement benefits 0 0 0 (33)
 Net income 143 175 246 560
 Less preferred stock
 dividends 1 1 4 4
 Net income - common
 stockholders $142 $174 $242 $556
 Weighted average number
 of outstanding common
 shares - assuming
 full dilution 278 279 277 281
 Earnings per share,
 before cumulative
 effect of changes
 in accounting
 principles - assuming
 full dilution .51 .63 .88 1.92
 Per share cumulative
 effect of change in
 accounting principle
 - income taxes .00 .00 .00 .19
 Per share cumulative
 effect of change in
 accounting principle
 - postretirement
 benefits .00 .00 .00 (.12)
 Earnings per common
 share - assuming
 full dilution $.51 $.63 $.88 $1.99
 Cash dividends per
 common share $.25 $.25 $.75 $.73
 -0- 10/20/93
 /CONTACT: David M. Thompson or Richard M. Johnson of Marion Merrell Dow Inc., 816-966-4000/

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

TS -- NY013 -- 4346 10/20/93 07:57 EDT
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Publication:PR Newswire
Date:Oct 20, 1993

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