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SMITHKLINE BEECHAM THIRD QUARTER 1992 SALES UP 9 PERCENT; EARNINGS PER SHARE INCREASE 13 PERCENT

 SMITHKLINE BEECHAM THIRD QUARTER 1992 SALES
 UP 9 PERCENT; EARNINGS PER SHARE INCREASE 13 PERCENT
 PHILADELPHIA, Oct. 20 /PRNewswire/ -- SmithKline Beecham (NYSE: SBH) announced today that sales rose 9 percent in the third quarter ending Sept. 30, 1992. Pre-tax profit rose 8 percent and earnings per share were up 13 percent to 12.1 cents/6.8 pence.
 At comparable rates of exchange, sales rose 12 percent. Operating profit and pre-tax profit rose 8 and 13 percent.
 For the first nine months of 1992, sales and pre-tax profit increased 9 percent. The tax rate for the nine months was 32.3 percent, the estimated rate for the year.
 Commenting on the results, SmithKline Beecham Chief Executive Robert Bauman said: "Our continued momentum was led by a strong performance by our pharmaceutical business. We are on target to meet our financial expectations for the year.
 "A key component of our progress is our ability to exploit our global marketing and selling strengths and to maximize the potential of the growing number of new products emerging from our pipeline."
 The following business sector comparisons for the third quarter are made at comparable rates of exchange.
 PHARMACEUTICALS
 Pharmaceutical sales increased 24 percent and operating profit was up 16 percent for the quarter. For the first nine months, sales rose 15 percent and operating profit was up 13 percent.
 Sales benefited from the exceptional performance in the United States of Engerix-B, the genetically-engineered hepatitis B vaccine. Sales reflected in part the out-of-stock position of a competitor and a widespread change in attitude towards the importance of hepatitis B vaccination. Engerix-B also performed well in other key markets with worldwide sales more than doubling.
 Operating profit growth reflected the exceptional sales increase but was partially offset by higher marketing expenditure in support of new product launches. The comparison with the third quarter 1991 is affected by the $21 million Bolar settlement in that quarter and the exceptional performance of Engerix-B in the third quarter of 1992.
 Seroxat/Paxil (paroxetine), the antidepressant, continues its impressive performance. In the United Kingdom, where it has been available since February 1991, it had a 23.7 percent share of the market by value for the latest period.
 In the Netherlands, Seroxat held a 10.5 percent share in August, 11 months after launch. In the United States, an FDA advisory committee voted on the efficacy and safety of paroxetine and unanimously recommended its approval for the treatment of depression.
 Relafen (nabumetone), the anti-arthritis medicine, continued its rapid progress in the United States. Since its introduction in late February 1992, Relafen has already become one of the top three products by market share in the oral non-steroidal anti-inflammatory category.
 Kytril (granisetron), the highly selective and effective treatment for the prevention of nausea and vomiting in patients undergoing cancer therapy, is now on the market in nine countries. In Japan it strengthened its position by acceptance on the formularies of over 90 percent of targeted major clinics.
 Augmentin, the broad-spectrum antibiotic, had a worldwide sales growth during the quarter of 41 percent, which included an exceptional rise in the United States compared with an unusually slow quarter in 1991.
 Tagamet, the peptic ulcer medicine, remained in line with expectations, registering a 4 percent decline worldwide.
 During the quarter, SmithKline Beecham announced a strategic realignment of pharmaceutical research and development designed to focus resources on drug discovery with the highest potential for return.
 ANIMAL HEALTH
 Animal Health had a sales increase of 6 percent in continuing weak world markets. Good performance of large animal biologicals and antibiotics was countered by continued competition in the area of productivity enhancers.
 Operating profit declined by 8 percent as a result of the withdrawal of nitrofurans in the United States in late 1991, increased manufacturing costs and investment in R&D.
 CONSUMER BRANDS
 Sales for the quarter decreased 5 percent and operating profit was down 1 percent. The disposal of the Manetti Roberts toiletries business in Italy affected sales by 6 percent and profit by 5 percent.
 Trading in the United States and United Kingdom was still affected by weak economies but Europe and the rest of the world performed well. Market share continued to hold up, with both Tums and Contac showing improvement.
 In the United Kingdom, the sales performance of the health drinks business was affected by the poor weather.
 A key event in the quarter was the OTC partnership in the United States with Marion Merrell Dow, a significant step in SmithKline Beecham's goal of leadership in the consumer brand sector.
 CLINICAL LABORATORIES
 Sales were up 10 percent and operating profit increased only 3 percent due to a number of non-recurring items.
 Sales growth was led by drug testing which increased at a faster pace than the growing national market, but overall business was affected by hurricane Andrew which impacted on laboratory operations in Miami and New Orleans. Business is recovering.
 In August, the company announced the establishment of the Clinical Trials EuroCentre in Genval, Belgium, a completely standardized clinical trials laboratory to serve pharmaceutical companies in Europe.
 DIVIDEND
 A quarterly dividend of 2.075 pence per A share, 4.503 cents per Equity Unit and 22.515 cents per Equity Unit ADR, has been declared. Payment will be on January 15, 1993 to shareholders of record on Nov. 27, 1992. An exchange rate of $1.6275 to 1 pound sterling has been used, which was the opening exchange rate in London on Oct. 20, 1992.
 SmithKline Beecham -- one of the world's leading healthcare companies - discovers, develops, manufactures and markets human and animal pharmaceuticals, over-the-counter medicines and clinical laboratory testing services.
 SMITHKLINE BEECHAM
 Consolidated Profit and Loss Account
 Three months ended Sept. 30, 1992
 (Unaudited)
 1992 1991 1992
 Pounds Pounds Increase Dollars
 million million percent million(A)
 Sales (B) 1,276 1,170 9 2,271
 Cost of goods sold (440) (423) (783)
 Gross Profit 836 747 1,488
 Selling, general and
 administrative expenses (443) (372) (789)
 Research and development
 expenditure (118) (111) (210)
 Trading Profit (B) 275 264 4 489
 Share of profits of associated
 undertakings 2 --- 4
 Interest (5) (12) (9)
 Profit on ordinary activities
 before taxation 272 252 8 484
 Tax on profit on ordinary
 activities (C) (87) (82) (155)
 Profit on ordinary activities
 after taxation 185 170 9 329
 Minority interests (2) (4) (4)
 Auction Rate Preference Share
 dividends (3) (6) (5)
 Profit attributable to
 shareholders 180 160 13 320
 Dividends payable (65) (58) (115)
 Retained profit 115 102 205
 Earnings per Share (D) 6.8p 6.0p 13 12.1c
 Earnings per Equity Unit (D) 6.8p 6.0p 13 12.1c
 Earnings per Equity
 Unit ADR (D) 34.0p 30.0p 13 60.5c
 SMITHKLINE BEECHAM
 Consolidated Profit and Loss Account
 Nine months ended Sept. 30, 1992
 (Unaudited)
 1992 1991 1992
 Pounds Pounds Increase Dollars
 million million percent million(A)
 Sales (B) 3,743 3,435 9 6,663
 Cost of goods sold (1,293) (1,220) (2,302)
 Gross Profit 2,450 2,215 4,361
 Selling, general and
 administrative expenses (1,286) (1,120) (2,289)
 Research and development
 expenditure (337) (318) (600)
 Trading Profit (B) 827 777 6 1,472
 Share of profits of associated
 undertakings 3 1 5
 Interest (26) (43) (46)
 Profit on ordinary activities
 before taxation 804 735 9 1,431
 Tax on profit on ordinary
 activities (C) (260) (241) (463)
 Profit on ordinary activities
 after taxation 544 494 10 968
 Minority interests (9) (9) (16)
 Auction Rate Preference Share
 dividends (11) (18) (19)
 Profit attributable to
 shareholders 524 467 12 933
 Dividends payable (193) (174) (344)
 Retained profit 331 293 589
 Earnings per Share (D) 19.7p 17.6p 12 35.1c
 Earnings per Equity Unit (D) 19.7p 17.6p 12 35.1c
 Earnings per Equity
 Unit ADR (D) 98.5p 88.0p 12 175.3c
 SMITHKLINE BEECHAM
 Summary Consolidated Balance Sheet
 Sept. 30, 1992 -- unaudited
 Sept. 30 Sept. 30 Sept. 30
 1992 1991 1992
 Pounds Pounds Dollars
 million million million(A)
 Fixed Assets 1,707 1,574 3,038
 Current Assets 2,942 2,440 5,237
 Creditors due within 1 year (2,591) (2,226) (4,612)
 Net current assets 351 214 625
 Creditors due after
 more than 1 year (527) (639) (938)
 Net Assets 1,531 1,149 2,725

 SB Shareholders' Equity 1,039 654 1,850
 Auction Rate Preference
 Shares of subsidiary 471 462 838
 Minority interests 21 33 37
 Total Shareholders' Funds 1,531 1,149 2,725
 Summary Cash Flow Statement
 Nine months ended Sept. 30, 1992
 (Unaudited)
 1992 1991 1992
 Pounds Pounds Dollars
 million million million(A)
 Inflow from trading activities 819 735 1,458
 Net interest and dividends paid (222) (241) (395)
 Tax paid (167) (159) (297)
 Investing activities --
 purchases less sales of
 tangible fixed assets (157) (150) (280)
 Free cash flow 273 185 486
 Restructuring costs and extra-
 ordinary items paid (89) (113) (158)
 Investing activities - other (7) 56 (13)
 Net cash inflow 177 128 315
 Financing outflow (318) (113) (566)
 Increase (decrease) in cash and
 cash equivalents (141) 15 (251)
 Total net borrowings
 At beginning of period (502) (676) (893)
 Exchange restatement (91) (103) (162)
 Net cash inflow 177 128 315
 Issue of share capital 13 13 23
 At end of period (403) (638) (717)
 SMITHKLINE BEECHAM
 Notes on the Interim Financial Statements
 Three months and nine months ended Sept. 30, 1992
 (A) Basis of Preparation
 The unaudited results for the nine months ended Sept. 30, 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 $1.78 to 1 pound (the rate applicable at Sept. 30, 1992) solely for the convenience of the reader.
 (B) Segment Information:
 1992 1991 Increase/ 1992
 Pounds Pounds (Decrease) Dollars
 million million percent million(A)
 Three months ended Sept. 30:
 Sales:
 Pharmaceuticals 709 587 21 1,262
 Animal Health 85 84 2 151
 Consumer Brands 338 360 (6) 602
 Clinical Laboratories 144 139 3 256
 Total 1,276 1,170 9 2,271
 Trading Profit:
 Pharmaceuticals 173 157 11 308
 Animal Health 16 17 (12) 28
 Consumer Brands 68 72 (5) 121
 Clinical Laboratories 18 18 --- 32
 Total 275 264 4 489
 Nine months ended Sept. 30:
 Sales:
 Pharmaceuticals 2,069 1,809 14 3,683
 Animal Health 235 233 1 418
 Consumer Brands 1,015 997 2 1,807
 Clinical Laboratories 424 396 7 755
 Total 3,743 3,435 9 6,663
 Trading Profit:
 Pharmaceuticals 567 519 9 1,009
 Animal Health 39 45 (14) 70
 Consumer Brands 168 165 2 299
 Clinical Laboratories 53 48 11 94
 Total 827 777 6 1,472
 (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:
 1992 1991 1992
 Pounds Pounds Dollars
 Three months ended Sept. 30:
 Profit attributable to shareholders 180m 160m 320m
 Average number of A and B Shares 2,666m 2,654m 2,666m
 Earnings per Share 6.8p 6.0p 12.1c
 Earnings per Equity Unit 6.8p 6.0p 12.1c
 Earnings per Equity Unit ADR 34.0p 30.0p 60.5c
 Nine months ended Sept. 30:
 Profit attributable to shareholders 524m 467m 933m
 Average number of A and B Shares 2,666m 2,654m 2,666m
 Earnings per Share 19.7p 17.6p 35.1c
 Earnings per Equity Unit 19.7p 17.6p 35.1c
 Earnings per Equity Unit ADR 98.5p 88.0p 175.3c
 Earnings per share have been computed to take into account the 2:1 split in the A shares and the 10:1 split in the Equity Units which occurred on July 13, 1992. On the New York Stock Exchange five new Equity Units were combined to create the Equity Unit ADR. The 1991 comparatives have been restated.
 (E) Shareholders' Report
 The Shareholders' Report for the third quarter will be posted to shareholders on Nov. 2, 1992.
 /delval/
 -0- 10/20/92
 /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


MP-SF -- PH001 -- 2121 10/20/92 10:18 EDT
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