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RHONE-POULENC ANNOUNCES 1992 FIRST NINE-MONTH RESULTS

 -- Net Sales: FF61.9 billion
 -- Operating income: FF5.6 billion
 -- Net income before preferred remuneration: FF1.6 billion
 -- Net income per ordinary share: FF18.73
 Despite a sharp deterioration in the world's economic climate in the third quarter, Rhone-Poulenc generated in the first nine months of 1992 an increase in its operating income (+23.5 percent) and its net income per ordinary share (+6.6 percent)
 PARIS, Nov. 22 ~PRNewswire~ -- The Rhone-Poulenc Group (NYSE: RPPrC, RPPrA, RPU, RPWS) generated consolidated nine-month sales of FF61.95 billion compared to 62.48 billion in the first nine months of 1991, a decrease of 0.8 percent. This was essentially due to a negative effect of 2.9 percent relating to currency translations(Note A). On a comparable basis of currency translation and consolidation, net sales progressed 2.6 percent.
 The decline in the economic climate which began during the second quarter was more pronounced beginning in August for the organic and inorganic intermediates and fibers and polymers sectors as the downward pressure on prices remained strong.
 Operating income rose to FF5.65 billion for the first nine months of 1992 compared to FF4.57 billion in the first nine months of 1991, an increase of 23.5 percent. This was essentially due to an increase in the operating income of the Health and Specialty Chemical Sectors. The Health Sector represented nearly 63 percent of the group's operating income. The operating income of the other sectors (organic and inorganic intermediates, fibers and polymers and agro) have all suffered from the effect of the poor economic climate in Europe, however, the operating income of the organic and inorganic intermediates sector was in part compensated by the release of unused provisions.
 Net income before preferred remuneration amounted to FF1.58 billion for the first nine months of 1992 compared to FF1.62 billion in the first nine months of 1991(Note B), a decline of 2.5 percent. This was due to a deterioration in the results of foreign currency transactions and rising financial expenses in the third quarter due to the monetary crisis in September.
 Net income per ordinary share rose to FF18.73 for the first nine months of 1992 compared to FF17.57 in the same period in the previous year(Note B), an increase of 6.6 percent, due to the decline in preferred remuneration resulting from a particularly low level of short- term interest rates on the dollar.
 For the third quarter, 1992 net sales amounted to FF19.38 billion as compared to FF20.44 billion in 1991, a decline of 5.2 percent, because of a sharp decline linked to the effects of currency translations(Note A), partially offset by a volume increase in the health and specialty chemical sectors.
 The operating income rose to FF1.64 billion for the third quarter of 1992 compared to FF1.39 billion in the previous year, an increase of 18.1 percent.
 The group does not anticipate an improvement in the economy in the last quarter, in an economic climate depressed and difficult to read due to currency movements. Rhone-Poulenc thinks a 10 percent increase in its operating income for the whole of 1992 is achievable. Moreover, at a net income level, the group estimated that it will benefit in the fourth quarter from its continuing divestment program and from the noted stabilization of the financial markets which should partially offset the unfavorable evolution recorded at the end of September 1992 in the line item "other income (expenses) - net."
 Note A -- For the first nine months of 1992, the average dollar exchange rate was FF5.30 compared to FF5.67 in 1991. For the third quarter of 1992, the average dollar exchange rate was FF4.96 compared to FF5.92 in 1991.
 Note B -- Before the exceptional FF369 million positive cumulative effect as of Jan. 1, 1991, for the change in the accounting principle for the calculation of deferred taxes, already noted in the closing of the accounts in the first half of 1992.
 RHONE-POULENC
 Summary Consolidated Statements of Income(A)
 (FF millions)
 Pct.
 Nine months 1992(B) 1991(C) Change
 Net sales 61,946 62,477 (0.8)
 Depreciation of property,
 plant and equipment (4,169) (4,122) --
 Amortization of intangible assets (710) (705) --
 Provision for restructuration (99) (133) --
 Operating income 5,649 4,574 23.5
 Interest expense - net (2,452) (2,640) --
 Gains on sales of assets - net 468 766 --
 Other income (expenses) - net (159) 975 --
 Equity in net earnings of
 affiliated companies (94) (54) --
 Income before taxes and
 minority interests 3,412 3,621 (5.8)
 Provision for income taxes (856) (1,120) --
 Income before minority interests 2,556 2,501 2.2
 Minority interests (977) (880) --
 Net income before cumulative effect
 of a change in accounting principle 1,579 1,621 (2.6)
 Cumulative effect as of Jan. 1, 1991,
 of a change in accounting principle
 for differed income taxes -- 369 --
 Net income before preferred
 remuneration 1,579 1,990 --
 Preferred remuneration (469) (577) --
 Net income available for
 distribution to common shareholders 1,110 1,413 --
 Results before exceptional cumulative
 effect as of Jan. 1, 1991, of change
 in accounting principle for differed
 income taxes:
 Net income before preferred
 remuneration 1,579 1,621 (2.6)
 Preferred remuneration (469) (577) --
 Net income available for distribution
 to common shareholders 1,110 1,044 6.3
 Net income per share 18.73 17.57 6.6
 Net income per P.I.C 22.48 21.32 5.4
 Avg. number of shares outstdg. 45,183,250 45,183,250 --
 Avg. number of P.I.C outstdg. 11,720,675 11,720,675 --
 Summary Consolidated Balance Sheets(A)
 (FF millions)
 Sept. 30 1992(B) 1991(C)
 Assets:
 Receivables and other current assets 28,598 28,210
 Inventories 15,095 16,194
 Investments and other assets 12,039 11,598
 Fixed assets 54,621 61,598
 Total assets 110,353 117,600
 Liabilities and stockholders' equity:
 Payables and other current liabilities 45,583 45,389
 Long-term debt 16,563 19,033
 Provisions and other long-term liabilities 9,332 9,473
 Stockholders' equity plus other funds 38,875 43,705
 Total liabilities and stockholders' equity 110,353 117,600
 Debt to equity ratio 0.95 0.86
 (A) -- Non-audited.
 (B) -- Reviewed by statutory auditors and independent auditors.
 (C) -- This presentation includes accounting reclassifications as of Dec. 31, 1991.
 Summary Consolidated Statements of Income(A)
 (FF millions)
 Pct.
 Third quarter 1992 1991(B) Change
 Net sales 19,384 20,441 (5.2)
 Depreciation of property,
 plant and equipment (1,329) (1,333) --
 Amortization of intangible assets (244) (268) --
 Provision for restructuration (52) (35) --
 Operating income 1,647 1,394 18.1
 Interest expense - net (931) (686) --
 Gains on sales of assets - net 277 565 --
 Other income (expenses) - net (364) 248 --
 Equity in net earnings of
 affiliated companies (121) (43) --
 Income before taxes and
 minority interests 508 1,478 (65.6)
 Provision for income taxes (107) (336) --
 Income before minority interests 401 1,142 (64.9)
 Minority interests (370) (385) --
 Net income before preferred
 remuneration 31 757 (95.9)
 Preferred remuneration (164) (209) --
 Net income available for
 distribution to common shareholders (133) 548 --
 Net income per share -2.60 9.37 --
 Net income per P.I.C -1.35 10.62 --
 Avg. number of shares outstdg. 45,183,250 45,183,250 --
 Avg. number of P.I.C outstdg. 11,720,675 11,720,675 --
 (A) -- Not audited.
 (B) -- This presentation includes accounting reclassifications as of Dec. 31, 1991.
 Breakdown by Segment
 Nine Months
 Net Sales Operating Income
 Pct. Pct.
 Segment 1992 1991 Change 1992 1991 Change
 Organic and inorganic
 intermediates 12,171 12,793 (4.9) 646 671 (3.7)
 Specialty chemicals 11,216 11,221 -- 498 172 189.5
 Fibers and polymers 9,595 10,279 (6.7) 506 435 16.3
 Health 22,012 20,719 6.2 3,533 2,704 30.7
 Agro 8,068 8,714 (7.4) 913 1,044 (12.5)
 Others (including
 eliminations) (1,116) (1,249) (10.6) (447) (452) (1.1)
 Total 61,946 62,477 (0.8) 5,649 4,574 23.5
 -0- 11~22~92
 ~CONTACT: Arvind Sood of Rhone-Poulenc Inc., 908-821-3487, or John McInerney of Dewe Rogerson, 212-688-6840, for Rhone-Poulenc~
 (RPU)


CO: Rhone-Poulenc Group ST: IN: CHM SU: ERN

CK-SB -- NYSU002 -- 0187 11~22~92 15:17 PST
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Date:Nov 20, 1992
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