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RHONE-POULENC RORER REPORTS GOOD SECOND QUARTER EARNINGS GROWTH

 COLLEGEVILLE, Pa., and PARIS, July 19 /PRNewswire/ -- Rhone-Poulenc Rorer (NYSE: RPR) today reported net income of $119.6 million ($.87 per share) in the second quarter compared with $86.7 million ($.63 per share) in 1992.
 Results for the second quarter 1993 include income of $14.6 million ($.11 per share) from the net effects of proceeds from a settlement of patent litigation less restructuring and other charges taken in the period, both of which were previously reported. Excluding these items, earnings per share increased by 21 percent in the quarter. Sales growth and continued improvements in gross margin and interest expense contributed to increased profitability.
 Sales were $1.008 billion in the second quarter, an increase of approximately 8 percent over the prior year on an operational basis which excludes the effects of currency fluctuations and product divestitures. Including these effects, sales on an as-reported basis increased approximately 4 percent.
 Sales growth was driven primarily by the U.S. prescription business led by Azmacort, Nasacort, Lozol and DDAVP. Lovenox, the market leader in Europe for prevention of deep vein thrombosis, was launched in May in the U.S. where it showed encouraging early acceptance. In June, RPR and Fisons commenced the co-promotion in the U.S. of each others asthma products, Azmacort and Tilade. The U.S. OTC division performed well in the quarter led by Maalox which grew 15 percent over the prior year. Sales growth in France was led by antibiotics Rovamycine and Oroken and Doliprane, an analgesic. Lovenox continued to grow in France along with the rest of Europe. Armour's worldwide plasma derivatives business performed well, particularly Albuminar in Japan and Monoclate-P in Europe. As anticipated, sales in Germany and Italy continue to be depressed due to the effects of legislative actions.
 For the six months ended June 1993, net income increased 25 percent to $213.8 million and earnings per share increased 25 percent to $1.55 on sales of $1.924 billion. Total sales on an operational basis were 7 percent higher in 1993, and year-to-date sales of the company's key strategic products as a group were 20 percent higher than in 1992 on this same basis. These products continue to grow at more than twice the pace of the overall product portfolio.
 "We are pleased with our second quarter performance, especially in light of the challenging pharmaceutical market, and with the actions we are taking to position the company for future growth," said Robert E. Cawthorn, Chairman and Chief Executive Officer. "First, we are streamlining our operations particularly in Europe. Second, we achieved a favorable settlement of the Baxter patent litigation which strengthens Armour's position in the global Factor VIII market. Third, we announced a major R&D strategy to enable RPR to play a leading role in cell and gene therapies. Integral steps in this strategy include our alliance with Applied Immune Sciences, Inc., a leader in cell therapy, and an agreement with the French Scientific Research National Center (CNRS) and the Institut Gustave Roussy to acquire rights for the use of an adenovirus vector for gene therapy applications.
 "Looking ahead, pharmaceutical companies in the 1990s will continue to face global challenges as governments struggle to contain healthcare costs in the face of the increasing medical needs of their aging populations. It is clear that there will be winners and losers in this decade. With RPR's continuing opportunities to improve gross margin and to fund innovative research leading to the launch of major new products, such as Taxotere, we are confident of our ability to emerge as a winner in this environment."
 Rhone-Poulenc Rorer is a global pharmaceutical company dedicated to the discovery, development, manufacturing and marketing of human pharmaceuticals. The Company reported sales of $4.1 billion and invested over $500 million in research and development in 1992.
 RHONE-POULENC RORER INC. AND SUBSIDIARIES
 Condensed Consolidated Statements Of Income
 (Unaudited; amounts in millions except per-share data)
 Periods ended Three months Six months
 June 30 1993 1992 1993 1992
 NET SALES $1,008.1 $ 971.1 $1,924.4 $1,868.9
 Cost of products sold 326.4 332.0 635.2 643.9
 Selling, delivery and
 administrative expenses 372.3 358.3 698.8 692.5
 Research and development
 expenses 141.4 128.8 269.2 243.1
 Restructuring and
 other charges(A) 77.2 --- 77.2 ---
 Proceeds from litigation
 settlement(B) 105.0 --- 105.0 ---
 OPERATING INCOME 195.8 152.0 349.0 289.4
 Interest expense - net 17.1 24.6 37.6 51.7
 Other (income) expense - net (.1) 1.7 (3.5) 6.2
 INCOME BEFORE INCOME TAXES 178.8 125.7 314.9 231.5
 Provision for income taxes 57.2 36.4 96.9 70.5
 Net income before
 accounting change 121.6 89.3 218.0 161.0
 Cumulative effect of
 accounting change(C) --- --- --- 15.0
 Dividend on preferred stock (2.0) (2.6) (4.2) (5.6)
 NET INCOME AVAILABLE TO
 COMMON SHAREHOLDERS $ 119.6 $ 86.7 $ 213.8 $ 170.4
 EARNINGS PER COMMON SHARE:
 Before accounting change .87 .63 1.55 1.13
 Cumulative effect of
 accounting change --- --- --- .11
 Total $.87 $.63 $1.55 $1.24
 (A) In the second quarter of 1993, the Company recorded a charge of $77.2 million for the cost of restructuring and manufacturing streamlining programs and increased provisions for certain litigation.
 (B) Proceeds from litigation reflect the May 1993 settlement of a patent lawsuit concerning Factor VIII:C for $105 million.
 (C) Results for the six months ended June 30, 1992, include income of $15 million ($.11 per share) cumulative effect of adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," effective Jan. 1, 1992.
 /delval/
 -0- 7/19/93
 /CONTACT: Rhone-Poulenc Rorer Investor Relations, 215-454-3851, or Media Inquiries, 215-454-3871/
 (RPR)


CO: Rhone-Poulenc Rorer ST: Pennsylvania IN: MTC SU: ERN

CC -- PH027 -- 3260 07/19/93 17:04 EDT
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Date:Jul 19, 1993
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