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

 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.
 -0- 10/19/93
 /CONTACT: Brian McGlynn of Pfizer, 212-573-2051/
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (PFE)


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

GK -- NY019 -- 3846 10/19/93 10:18 EDT
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Publication:PR Newswire
Date:Oct 19, 1993
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