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PFIZER RECORDS $750 MILLION PRE-TAX RESTRUCTURING CHARGE AS PART OF ACCELERATED PROGRAM TO IMPROVE COMPETITIVENESS AND PRODUCTIVITY

Excluding This Charge, Ongoing Third-Quarter Sales Were $1,870 Million,
 Net Income $311 Million, Earnings Per Share $0.98
 /NOTE TO EDITORS: The following story ran earlier today, the text as NY019 and the tables as NY019A. It is repeated below in its entirety/
 NEW YORK, Oct. 19 /PRNewswire/ -- As part of an ongoing program to strengthen the efficiency and competitiveness of its global operations, Pfizer Inc (NYSE: PFE) recorded a charge for certain restructuring and unusual items of $750 million pre-tax, $525 million after-tax, or $1.63 per share in the third quarter of 1993. This charge will cover the projected cost of process, organizational and facilities streamlining and the write-off of certain assets. The restructuring will generate substantial savings and, over several years, lead to a workforce reduction of approximately 3,000 employees worldwide.
 Sales on a reported basis for the third quarter were $1,873 million, up 2 percent from the same period in 1992. Including the restructuring charge, a net loss of $214 million was reported for the third quarter. Excluding the charge, ongoing net income of $311 million and earnings per share of $0.98 were up 7 percent and 14 percent, respectively, from the same period last year.
 "We must continue to improve the competitiveness and operating efficiency of the company in the face of fast-changing market conditions," said William C. Steere, Jr., Pfizer Chairman and Chief Executive Officer. "Our operating results show that our business fundamentals remain strong -- including the continued performance of our new health care products. As a result of the steps we're taking today to increase the efficiency of our operations worldwide, we will be an even stronger competitor in the years ahead," he added.
 This restructuring program is another step in a continuing series of actions begun in 1988 to streamline the company and focus on our core businesses. Through the divestment of 14 businesses with about $1.4 billion in aggregate sales, and various cost- containment initiatives, the company has improved its reported operating margin from 18.8 percent in 1988 to 22.9 percent through the third quarter of 1993, exclusive of this restructuring.
 Pfizer's results in 1993 and 1992 reflect significant divestments and business closures, restructuring charges and unusual items. Excluding these items, ongoing sales at $1,870 million increased 9 percent in the third quarter, ongoing net income at $311 million increased 7 percent, and earnings per share from ongoing operations at $0.98 increased 14 percent.
 "Our sales growth from ongoing operations was virtually all from volume, with very little from new price increases, which were well below the rate of inflation. This demonstrates that Pfizer's new health care products continue to gain wide acceptance in the U.S. and abroad," said Mr. Steere. "We believe that the prospect of U.S. health care reform will further accelerate changes already occurring in our industry. We intend to continue positioning ourselves for growth and to be highly competitive in this changing environment. Our portfolio of cost- effective, innovative health care products gives us a strong foundation to do just that."
 For the first nine months of 1993, including the effect of the restructuring charge, the company reported sales at $5,489 million, up 4 percent, net income at $369 million, down 31 percent, and earnings per share of $1.15, down 27 percent. Financial results from ongoing operations for the first nine months were sales of $5,479 million, up 11 percent, net income of $895 million, up 17 percent, and earnings per share of $2.78, up 23 percent.
 Restructuring Expected to Generate Substantial Savings
 -- The $750 million pre-tax ($525 million after-tax) charge
 will cover restructuring costs, including personnel
 reductions and the write-off of certain tangible and
 intangible assets whose carrying value will not be recovered
 through future cash flows.
 -- The reserve provides for a wide range of targeted
 restructuring initiatives including the consolidation of
 manufacturing, distribution and administrative
 infrastructures. Some projects will begin immediately, while
 others will be phased in over the next several years.
 -- In the course of restructuring and streamlining the company,
 Pfizer expects there will be a reduction in personnel of
 approximately 3,000 people, inclusive of attritions and
 retirements. For those people affected, Pfizer will continue
 the practice of offering assistance consistent with its
 longstanding policy of treating employees fairly. This
 restructuring, coupled with earlier initiatives already
 completed or in progress, is expected ultimately to reduce
 Pfizer's total work force by approximately 4,000 people, or
 approximately 10% of total personnel.
 -- The company anticipates that expense savings related to the
 restructuring will be phased in over the next several years,
 and that annual savings will be at least $130 million when
 the full benefit of the efficiencies is realized. In
 addition, Pfizer will avoid significant future expenditures
 and capital investments to support various endeavors which
 are no longer consistent with the company's long-term
 strategic objectives.
 Health Care Segment Leads Company's Sales Growth
 in the Third Quarter
 Pfizer's health care segment reported 11 percent sales growth from ongoing operations in the third quarter. Within this segment, pharmaceutical sales increased 13 percent and hospital products rose 2 percent.
 Pfizer's new pharmaceutical products have achieved outstanding acceptance in the marketplace. The company's line of cardiovascular products -- Procardia XL, Norvasc and Cardura -- posted sales increases of 9 percent, 71 percent, and 46 percent, respectively. Diflucan, the world's leading antifungal medicine, had a sales increase of 21 percent. Sales of Zithromax, a new class of antibiotic, and Zoloft, a leading product for treating depression, rose by 189 percent and 85 percent, respectively.
 Two of Pfizer's other business segments reported sales gains from ongoing operations for the quarter: Animal Health 5 percent and Consumer Health Care 4 percent. Food Science sales declined 17 percent.
 Pfizer's reported results are included in Attachment 1 and its results from ongoing operations in Attachment 2.
 Pfizer is a diversified, research-based health care company with global operations. The company reported sales of approximately $7.23 billion for 1992.
 ATTACHMENT 1
 AS REPORTED
 PFIZER INC AND SUBSIDIARY COMPANIES
 Condensed Consolidated Statement Of Income
 (Unaudited, Millions Of Dollars Except Per Share Data)
 Third Quarter Percent
 1993 1992 GRWT
 Net sales $1,872.5 $1,827.6 2
 Operating costs and expenses
 Cost of goods sold 436.4 521.5 (16)
 Marketing, distribution and
 administrative expenses 745.3 690.3 8
 Research and development expenses 242.6 212.8 14
 Divestitures, restructuring and
 unusual items-net 750.0 0.0 (A)
 Income from operations (301.8) 403.0 (A)
 Interest income 39.1 46.0 (15)
 Interest expense (29.6) (23.3) 27
 Other income 7.4 2.7 174
 Other deductions (43.4) (26.0) 67
 Non-operating income/
 (deductions) - net (26.5) (0.6) (A)
 Income before provision for taxes
 on income, minority interests
 and cumulative effect of
 accounting changes (328.3) 402.4 (A)
 Provision for taxes on income (115.5) 104.6 (A)
 Minority interests 1.4 0.3 367
 Income before cumulative effect
 of accounting changes (214.2) 297.5 (A)
 Cumulative effect of accounting
 changes for:
 Postretirement benefits-net of
 income taxes -- -- --
 Income taxes -- -- --
 Net income $(214.2) $297.5 (A)
 Earnings per common share:
 Income before cumulative effect
 of accounting changes $(0.65) $0.88 (A)
 Cumulative effect of accounting
 changes for:
 Postretirement benefits -- -- --
 Income taxes -- -- --
 Net income $(0.65) $0.88 (A)
 Nine Months Percent
 1993 1992 GRWT
 Net sales $5,488.5 $5,283.1 4
 Operating costs and expenses
 Cost of goods sold 1,296.9 1,507.1 (14)
 Marketing, distribution and
 administrative expenses 2,243.9 2,087.6 7
 Research and development expenses 688.8 616.1 12
 Divestitures, restructuring and
 unusual items-net 752.0 (95.2) (A)
 Income from operations 506.9 1,167.5 (57)
 Interest income 121.1 137.4 (12)
 Interest expense (81.3) (78.1) 4
 Other income 31.7 17.9 77
 Other deductions (118.5) (90.2) 31
 Non-operating income/
 (deductions) - net (47.0) (13.0) 262
 Income before provision for taxes
 on income, minority interests
 and cumulative effect of
 accounting changes 459.9 1,154.5 (60)
 Provision for taxes on income 89.6 339.0 (74)
 Minority interests 1.7 0.8 113
 Income before cumulative effect
 of accounting changes 368.6 814.7 (55)
 Cumulative effect of accounting
 changes for:
 Postretirement benefits-net of
 income taxes -- (312.6) --
 Income taxes -- 30.0 --
 Net income $368.6 $532.1 (31)
 Earnings per common share:
 Income before cumulative effect
 of accounting changes $1.15 $2.42 (52)
 Cumulative effect of accounting
 changes for:
 Postretirement benefits -- (0.93) --
 Income taxes -- 0.09 --
 Net income $1.15 $1.58 (27)
 (A) Calculation not meaningful
 (1) For the periods ended Oct. 3, 1993 and Sept. 27, 1992. Subsidiaries operating outside the United States generally are included on the basis of interim periods ended Aug. 29, 1993 and Aug. 23, 1992.
 (2) On an as reported basis, sales gains/(declines) were as follows:
 Third Quarter Nine Months
 Health care 11 pct 13 pct
 Pharmaceuticals 13 15
 Hospital Products 2 5
 Consumer Health Care 4 (9)(A)
 Food Science (B) (62) (58)
 Animal Health 5 5
 (A) Reflects the sale of the Coty business in the second quarter of 1992.
 (B) Reflects the sale of the Specialty Minerals business in the fourth quarter of 1992.
 (3) Operating income for the third quarter and first nine months of 1993 includes a charge of $750 million pre-tax, $525 million after-tax ($1.63 per share) to cover the projected cost of process, organizational and facilities streamlining and the write-off of certain assets. This charge is included in the line divestitures, restructuring and unusual items-net.
 (4) Operating income for the first nine months of 1993 also includes a pre-tax gain of approximately $60 million on the sale of the company's remaining interest in Minerals Technologies Inc., offset by restructuring charges of approximately $62 million. Operating income for the first nine months of 1992 has been restated for curtailment gains totaling approximately $39 million relating to postretirement benefit obligations of divested businesses. A net restructuring gain of approximately $56 million relating to the divestiture and restructuring of certain of the company's businesses, including the Coty transaction is also included in the first nine months of 1992 results. This amounted to a $3 million after tax gain, or $0.01 per share. These amounts are included in the line divestitures, restructuring and unusual items-net.
 (5) The percentage change in earnings per common share differs from the change in net income for the first nine months of 1993 due to the effect of the company's share repurchase program.
 (6) The results of operations for the interim periods ended Oct. 3, 1993 are not necessarily indicative of the results which ultimately might be achieved for the current year.
 ATTACHMENT 2
 ONGOING OPERATIONS
 PFIZER INC AND SUBSIDIARY COMPANIES
 Condensed Consolidated Statement of Income
 (Unaudited, Millions Of Dollars Except Per Share Data)
 Third Quarter Percent
 1993 1992 GRWT
 Net sales $1,869.6 $1,722.3 9
 Operating costs and expenses:
 Cost of goods sold 433.6 442.6 (2)
 Marketing, distribution and
 administrative expenses 745.2 677.2 10
 Research and development expenses 242.6 209.3 16
 Income from operations 448.2 393.2 14
 Interest income 39.1 45.0 (13)
 Interest expense (29.6) (22.9) 29
 Other income 7.4 2.8 164
 Other deductions (43.4) (24.7) 76
 Non-operating income/
 (deductions) - net (26.5) 0.2 (A)
 Income before provision for taxes
 on income, minority interests 421.7 393.4 7
 Provision for taxes on income 109.5 102.2 7
 Minority interests 1.4 0.4 250
 Net income $310.8 $290.8 7
 Earnings per common share $0.98 $0.86 14
 Nine Months Percent
 1993 1992 GRWT
 Net sales $5,478.9 $4,935.1 11
 Operating costs and expenses
 Cost of goods sold 1,287.3 1,264.7 2
 Marketing, distribution and
 administrative expenses 2,243.9 2,022.1 11
 Research and development expenses 688.8 603.6 14
 Income from operations 1,258.9 1,044.7 21
 Interest income 121.1 136.4 (11)
 Interest expense (81.3) (77.7) 5
 Other income 31.7 17.0 86
 Other deductions (118.5) (87.5) 35
 Non-operating income/
 (deductions) - net (47.0) (11.8) 298
 Income before provision for taxes
 on income, minority interests 1,211.9 1,032.9 17
 Provision for taxes on income 315.1 268.5 17
 Minority interests 1.7 0.8 113
 Net income $ 895.1 $763.6 17
 Earnings per common share $2.78 $2.26 23
 (A) Calculation not meaningful
 (1) For the periods ended Oct. 3, 1993 and Sept. 27, 1992. Subsidiaries operating outside the United States generally are included on the basis of interim periods ended Aug. 29, 1993 and Aug. 23, 1992.
 (2) The data presented in the above table exclude restructuring and unusual items, the effects of divested businesses and the one-time effect for the adoption of SFAS No. 106 and SFAS No. 109 in 1992.
 (3) On an ongoing basis, sales gains/(declines) were as follows:
 Third Quarter Nine Months
 Health Care 11 pct 13 pct
 Pharmaceuticals 13 15
 Hospital Products 2 5
 Consumer Health Care 4 1
 Food Science (17) (6)
 Animal Health 5 5
 (4) Businesses divested or closed since 1988 are as follows:
 Approx. Last
 Full Year Sales
 Date sold/closed (millions of dollars)
 1/88 Metals business $40
 6/88 Canadian Crop Protection 55
 12/88 United Medical 15
 4/89 Valleylab Infusion 15
 1/90 Pigments 115
 1/90 DeKalb Pfizer Genetics (equity investment)
 12/90 Citric Acid business 180
 6/91 Penicillin business 25
 8/91 Pfizer Laser Systems 3
 10/91 Deknatel 85
 12/91 Oral Care International 70
 2/92 Shiley assets 185
 6/92 Coty 280
 10/92 Minerals business 359
 TOTAL $1,427
 (5) The percentage growth in earnings per common share is greater than the growth in net income for the third quarter and first nine months of 1993 due to the effect of the company's share repurchase program.
 -0- 10/19/93
 /CONTACT: Brian McGlynn of Pfizer, 212-573-2051/
 (PFE)


CO: Pfizer Inc. ST: New York IN: MTC HEA SU: ERN

GK -- NY019C -- 4017 10/19/93 13:27 EDT
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Date:Oct 19, 1993
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