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SMITHKLINE BEECHAM FIRST QUARTER 1992 PERFORMANCE: OPERATING PROFIT UP 8 PERCENT; EARNINGS PER SHARE INCREASE 12 PERCENT

 SMITHKLINE BEECHAM FIRST QUARTER 1992 PERFORMANCE: OPERATING PROFIT UP 8 PERCENT; EARNINGS PER SHARE INCREASE 12 PERCENT
 Dividend Increased 13 percent to 48.77 Cents/4.15 Pence
 PHILADELPHIA, April 23 /PRNewswire/ -- SmithKline Beecham (SB) (NYSE: SBH) announced today that operating profit (trading profit) was up 8 percent compared to the first quarter of 1991.
 Pretax profit increased 10 percent to $481 million/ 278 million pounds sterling and earnings per share increased 12 percent to 23.4 cents/13.5 pence.
 Sales were $2.086 billion/1.206 billion pounds, a 9 percent increase over the first quarter of 1991. Currency fluctuations benefitted sales by 4 percentage points but profits were adversely affected by 2 percentage points. All following business sector comparisons are made at comparable rates of exchange.
 SmithKline Beecham Chief Executive Robert Bauman commented: "As we approach the third anniversary of the formation of SmithKline Beecham, we continue to make substantial progress toward our longer term financial and business objectives."
 SB's pharmaceutical business continued building on the growth of 1991. Sales for the first quarter increased 5 percent and operating profit was up 11 percent over a strong 1991 first quarter.
 There was strong growth in sales of Augmentin, the broad spectrum antibiotic in Europe and other international markets. However, in the United States, reduced wholesaler purchases affected ex-factory sales when compared to the first quarter of 1991 which saw exceptionally heavy inventory build-up. As a result, Augment in U.S. sales declined but its underlying strength remains, as illustrated by the continued increase in its market share during the quarter. Worldwide sales increased by 3 percent.
 Sales of Tagamet, the peptic ulcer medicine, increased 2 percent on a worldwide basis and were up 9 percent in the United States. Sales of Timentin, the injectable antibiotic and Bactroban, the topical antibiotic, increased 37 percent and 46 percent respectively worldwide. Engerix-B, the genetically engineered hepatitis B vaccine, had a sales increase of 89 percent.
 Among new pharmaceutical products, Relafen (nabumetone), was launched in the United States in late February and early indications suggest a very successful introduction. Its favorable safety profile is receiving a very positive response from physicians.
 Seroxat (paroxetine), which is marketed in three countries for the treatment of depression, completed its first year in the United Kingdom with a market share by value of 14.6 percent at the end of March compared with a 9.2 percent share at the end of 1991. Seroxat is growing faster in the United Kingdom than its two leading competitors.
 Kytril (granisetron), the highly selective and effective treatment for the prevention of nausea and vomiting in patients undergoing cancer therapy, was introduced in the United Kingdom, Denmark, Switzerland, The Netherlands and Ireland during the quarter. This treatment, which offers greater convenience for the patient and cancer care team, had also been successfully introduced in France and South Africa during 1991.
 Significant for SB was the introduction of the world's first hepatitis A vaccine, Havrix, in several European markets. Zocor, Merck's anti-cholesterol drug, was launched in the United States in February under a co-promotion arrangement with SmithKline Beecham. Initial response to the launch is encouraging.
 SB's Animal Health business was affected by weak market conditions, discontinuation of sales of nitrofuran products in the United States, and a decline in sales of growth enhancement products. Sales were level while operating profit was down 6 percent.
 Consumer Brands sales were up 4 percent in the face of continued recessionary pressures, notably in the United States and United Kingdom. Operating profit increased 5 percent after increased investment in advertising and marketing. Among key brands, Tums had a worldwide sales increase of 14 percent and now holds a record 45 percent market share in the United States. Aquafresh sales increased 15 percent worldwide, and in the United Kingdom, SB's toothpaste range achieved market leadership with a 27 percent share.
 Clinical Laboratories maintained its momentum, building on its record-breaking year of 1991. Sales increased 9 percent and operating profit was up 23 percent. The business was led by strong growth in both physician and industrial sales.
 Bauman added: "One of our objectives is a constantly strengthened balance sheet. Our positive cash flow of 106 million pounds enabled us to reduce our debt by 48 million pounds to 454 million pounds.
 "The most important of our objectives is achieving a superior research and development capability that produces a consistent flow of new products.
 "We are delighted with the products that are now coming to market -- Seroxat, Relafen, Havrix and Kytril are just four examples. We will continue to invest in them this year to ensure they achieve their full potential."
 Dividend
 The company today declared a first quarter dividend of 4.15 pence per A Ordinary Share and 48.77 cents per Equity Unit. Payment will be on July 15, 1992, to holders of record on May 8. An exchange rate of $1.7627 to 1 pound has been used, which was the opening exchange rate in London on April 23, 1992.
 SmithKline Beecham -- one of the world's leading healthcare companies -- discovers, develops, manufactures and markets human and animal pharmaceuticals, biologicals, over-the-counter medicines, health related consumer brands and clinical laboratory testing services. SB markets its more than 300 products in more than 130 countries.
 SMITHKLINE BEECHAM
 Consolidated Profit and Loss Account
 First quarter ended March 31, 1992
 (Unaudited)
 1992 1991 Favorable/ 1992
 Pounds Pounds (Unfavorable) Dollars
 million million percent million(A)
 Sales (B) 1,206 1,110 9 2,086
 Cost of goods sold (407) (386) -- (704)
 Gross Profit 799 724 -- 1,382
 Selling, general and
 administrative expenses (406) (360) -- (702)
 Research and development
 expenditure (104) (96) -- (180)
 Trading Profit (B) 289 268 8 500
 Share of profits of associated
 undertakings 1 -- -- 2
 Interest (12) (15) -- (21)
 Profit on ordinary activities
 before taxation 278 253 10 481
 Tax on profit on ordinary
 activities (C) (90) (84) -- (156)
 Profit on ordinary activities
 after taxation 188 169 11 325
 Minority interests (4) (3) -- (7)
 Auction Rate Preference Share
 dividends (4) (6) -- (7)
 Profit attributable to
 shareholders 180 160 12 311
 Dividends payable (64) (58) -- (111)
 Retained profit 116 102 -- 200
 Earnings per Ordinary Share (D) 13.5p 12.1p 12 23.4c
 Earnings per Equity Unit (D) 67.5p 60.5p 12 116.8c
 SMITHKLINE BEECHAM
 Summary Consolidated Balance Sheet
 March 31, 1992 -- unaudited
 March 31 March 31 March 31
 1992 1991 1992
 Pounds Pounds Dollars
 million million million(A)
 Fixed Assets 1,643 1,522 2,842
 Current Assets 2,704 2,585 4,678
 Creditors due within 1 year (2,532) (2,508) (4,380)
 Net current assets 172 77 298
 Creditors due after more than 1 year (481) (669) (832)
 Net Assets 1,334 930 2,308
 SB Shareholders' Equity 837 435 1,448
 Auction Rate Preference
 Shares of subsidiary 462 462 800
 Minority interests 35 33 60
 Total Shareholders' Funds 1,334 930 2,308
 SMITHKLINE BEECHAM
 Summary Cash Flow Statement
 First Quarter ended March 31, 1992 -- Unaudited
 Quarter ended 1992 1991
 March 31 Pounds Pounds
 million million
 Inflow from trading activities 260 258
 Net interest and dividends paid (73) (75)
 Tax paid (34) (33)
 Investing activities - purchases less
 sales of tangible fixed assets (39) (33)
 Free cash flow 114 104
 Restructuring costs and extra-
 ordinary items paid (23) (40)
 Investing activities - other 15 (6)
 Net cash inflow 106 58
 Financing inflow (outflow) 19 (213)
 Increase (decrease) in cash and
 cash equivalents 125 (155)
 Total net borrowings
 At beginning of period (502) (676)
 Exchange restatement (63) (96)
 Net cash inflow 106 58
 Issue of share capital 5 2
 At end of period (454) (712)
 SMITHKLINE BEECHAM
 Notes on the Interim Financial Statements
 First Quarter ended March 31, 1992
 (A) Basis of Preparation:
 The unaudited results for the three months ended March 31, 1992, have been prepared in accordance with U.K. generally accepted accounting principles. The accounting policies applied are those set out in the Annual Report and Accounts for the year ended Dec. 31, 1991.
 In these Financial Statements, the translation of pounds sterling into U.S. dollars has been made at $1.73 to 1 pound (the rate applicable at March 31, 1992) solely for the convenience of the reader.
 (B) Segment Information:
 Three months 1992 1991 Increase/ 1992
 ended March 31, 1992 Pounds Pounds (Decrease) Dollars
 million million percent million(A)
 Sales:
 Pharmaceuticals 674 615 10 1,166
 Animal Health 74 72 3 128
 Consumer Brands 322 306 5 557
 Clinical Laboratories 136 117 16 235
 Total 1,206 1,110 9 2,086
 Trading Profit:
 Pharmaceuticals 218 199 10 377
 Animal Health 13 14 (7) 23
 Consumer Brands 44 44 -- 76
 Clinical Laboratories 14 11 27 24
 Total 289 268 8 500
 (C) Taxation:
 Taxation has been calculated on the basis of the estimated effective tax rate for the year ending Dec. 31, 1992.
 (D) Earnings per share:
 Three months 1992 1991 1992
 ended March 31, 1992 Pounds Pounds Dollars
 Profit attributable to shareholders 180m 160m $311m
 Average number of A and B
 Ordinary Shares 1,332m 1,327m 1,332m
 Earnings per Ordinary Share 13.5p 12.1p 23.4c
 Earnings per Equity Unit 67.5p 60.5p 116.8c
 (E) Shareholders' Report:
 The Shareholders' Report for the first quarter will be posted to shareholders on May 6, 1992.
 /delval/
 -0- 4/23/92
 /CONTACT: Jeremy Heymsfeld, 215-751-5166, or Richard Williams (financial), 215-751-7002, both of SmithKline Beecham/
 (SBH) CO: SmithKline Beecham ST: Pennsylvania IN: MTC SU: ERN DIV


MP -- PH006 -- 1647 04/23/92 08:32 EDT
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