Printer Friendly

MARION MERRELL DOW INC. REPORTS SUBSTANTIALLY LOWER FIRST-QUARTER SALES, EARNINGS

 KANSAS CITY, Mo., April 21 /PRNewswire/ -- As anticipated in an announcement last month, Marion Merrell Dow Inc. (NYSE: MKC) today reported substantially lower sales and earnings for the first quarter of 1993 compared with the same quarter in 1992.
 Net sales for the quarter ended March 31, 1993, were $617 million, down 21 percent from $779 million a year earlier. First-quarter 1993 net income was $74 million, a decline of 56 percent compared with first-quarter 1992 income of $167 million before the cumulative effect of accounting changes. Earnings per share were $.26, 56 percent lower than year-earlier earnings per share of $.59 before the cumulative effect of accounting changes.
 "While our first-quarter performance was disappointing, we are still a very profitable company," said Fred W. Lyons, Jr., president and chief executive officer. "Financially, we're very strong, which gives us the flexibility to expand our business globally, and we have a promising new product pipeline for the long term."
 Although sales of the Cardizem(R) family of cardiovascular products were $208 million in the first quarter, 11 percent lower than a year earlier, the company believes the loss of sales to U.S. generic competition, which began in November 1992 for immediate- release Cardizem tablets, has been minimized compared with the performance of similar products following patent expiration. Once-a- day Cardizem CD for angina and hypertension, which continues under marketing exclusivity, has become the predominant dosage form of the Cardizem brand, with $118 million in first-quarter sales.
 First-quarter sales of the Seldane(R) family, the world's No. 1 selling antiallergy product, were $144 million, 30 percent lower than a year earlier. The brand has suffered lower sales overall since last summer due to a number of events -- adverse publicity concerning the July 1992 relabeling issue, restrictions on promotion and a decline in the antihistamine market. Expanded promotion, now under way for the spring allergy season, includes resumption of direct-to- consumer print advertising.
 Sales of Marion Merrell Dow's smoking cessation aids totaled $54 million in the quarter, 30 percent lower than a year earlier. The U.S. smoking cessation market has declined markedly from early 1992, when several new products were being launched simultaneously. First-quarter sales of the Nicoderm(R) patch, the U.S. market leader in smoking cessation, were $36 million, down from a year ago when Nicoderm had extremely strong sales of $55 million during its launch period. Nicorette(R) gum sales were $18 million, down from $22 million a year earlier. In the first quarter, the company introduced Nicorette DS, a new and stronger version (4 mg) of the gum, in the United States as an additional prescription option to help people quit smoking.
 Reflecting the stiff competition in the antiulcer category, first-quarter sales of Carafate(R) were $35 million, 26 percent lower than a year ago.
 Other factors which contributed to lower first-quarter sales were the transfer of consumer product sales (which totaled $26 million in the first quarter of 1992) to the company's partnership with SmithKline Beecham, currency exchange rates which had a negative effect on international sales, and growing government-mandated price rebates and negotiated discounts.
 In the first quarter, Marion Merrell Dow received a number of new product approvals worldwide, including Cardizem CD for treatment of angina in Canada, nonprescription "behind-the-counter" status in Canada for Nicorette 2 mg gum as a smoking cessation aid, and Sabril(R) for epilepsy in Korea.
 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. In 1992, Marion Merrell Dow had sales of $3.3 billion and invested $465 million in Research and Development.
 MARION MERRELL DOW INC.
 Consolidated Statements of Income(a)
 Three Months Ended March 31
 (Amounts in Millions, Except for Per Share Data)
 For the Three Months Ended
 March 31,
 1993 1992
 Net sales $617 $779
 Cost of sales 154 177
 Gross profit 463 602
 Operating expenses:
 Research and development 99 103
 Selling, general and
 administrative 269 253
 Total operating expenses 368 356
 Operating income 95 246
 Other income, net 14 13
 Interest expense 2 3
 Income before income taxes 107 256
 Income taxes 33 89
 Income before cumulative
 effects of changes in
 accounting principles 74 167
 Cumulative effect of change
 in accounting principle - income
 taxes --- 54
 Cumulative effect of change in
 accounting principle -
 postretirement benefits --- (33)
 Net income 74 188
 Less preferred stock dividends 1 1
 Net income available to
 common shareholders $73 $187
 Weighted average number of
 outstanding common shares -
 assuming full dilution 277 282
 Earnings per share, before
 cumulative effect of changes
 in accounting principles -
 assuming full dilution .26 .59
 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 $.26 $.66
 Cash dividends per common share $.25 $.23
 (a) Unaudited data
 -0- 4/21/93
 /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

EH -- LA018 -- 8534 04/21/93 09:18 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 21, 1993
Words:861
Previous Article:ADVANCED GRAVIS COMPUTER TECHNOLOGY LTD. ANNOUNCES RECORD FOURTH QUARTER AND YEAR-END OPERATING RESULTS
Next Article:NORAND SIGNS MAJOR CONTRACT WITH CONTINENTAL BAKING COMPANY FOR NORAND ROUTE AUTOMATION EQUIPMENT
Topics:


Related Articles
MARION MERRELL DOW REPORTS 25 PERCENT GAIN IN SECOND-QUARTER EARNINGS PER SHARE
MARION MERRELL DOW REPORTS 16 PERCENT GAIN IN THIRD-QUARTER EARNINGS PER SHARE
MARION MERRELL DOW EXPECTS SUBSTANTIAL DECLINE IN FIRST-QUARTER SALES, EARNINGS
MARION MERRELL DOW ANNOUNCES SECOND-QUARTER 1993 EARNINGS
MARION MERRELL DOW INC. ANNOUNCES THIRD QUARTER 1993 EARNINGS
MARION MERRELL DOW INC. ANNOUNCES THIRD QUARTER 1993 EARNINGS
MARION MERRELL DOW INC. ANNOUNCES SALES AND EARNINGS FOR 1993 AND FOURTH QUARTER
MARION MERRELL DOW INC. ANNOUNCES 1994 FIRST QUARTER SALES AND EARNINGS
MARION MERRELL DOW INC. ANNOUNCES SECOND QUARTER 1994 EARNINGS
MARION MERRELL DOW INC. ANNOUNCES IMPROVED EARNINGS FOR FIRST QUARTER OF 1995

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters