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SYNTEX SECOND QUARTER E.P.S. OF $.54 EVEN WITH PRIOR YEAR

 PALO ALTO, Calif., Feb. 26 /PRNewswire/ -- Syntex Corporation (NYSE: SYN) today reported that earnings per share in the fiscal 1993 second quarter, which ended Jan. 31, 1993, were $.54, even with earnings per share of $.54 in the second quarter a year ago. Sales decreased 3 percent to $505.5 million, down from $523.6 million in the year-ago quarter which was unusually strong.
 SYNTEX CORPORATION
 Second Quarter Results
 ($ in millions, except per share data)
 Three months ended Percent
 Jan. 31 FY 93 FY 92 Change
 Net Sales $505.5 $523.6 (3)
 Operating Income $121.6 $141.8 (14)
 Net Income $119.1 $121.6 (2)
 Earnings per share $.54 $.54 --
 "We were pleased with the sales growth of some of our newer products and with the results of our efforts to control spending in the second quarter of fiscal 1993," said Paul E. Freiman, chairman and chief executive officer of Syntex Corporation.
 "Sales of Toradol(R) (ketorolac tromethamine), Ticlid(R) (ticlopidine hydrochloride) and Cytovene(R) (ganciclovir sodium) increased in the second quarter of fiscal 1993 compared with the second quarter of fiscal 1992 and compared with the first quarter of fiscal 1993," Mr. Freiman said.
 "Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 1993 decreased 3 percent from the second quarter a year ago, primarily due to the initial implementation of our cost reduction program in November," Mr. Freiman said. SG&A expenses were 37.1 percent of sales in the fiscal 1993 second quarter, down from 41.3 percent in the first quarter of fiscal 1993.
 Mr. Freiman noted that compared with the second quarter a year ago, operating income for the recently-completed quarter declined 14 percent primarily due to a planned 13-percent increase in investments in research and development.
 The effective income tax rate for the second quarter of fiscal 1993 was 4 percent compared with 13 percent in the fiscal 1992 second quarter.
 "Sales in the second quarter a year ago were the highest in the company's history," Mr. Freiman said. "As we said last year, a special promotion to wholesalers shifted some U.S. human pharmaceutical sales to the fiscal 1992 second quarter from the fiscal 1992 third quarter. In addition, the second quarter of fiscal 1992 included initial shipments of Toradol intramuscular injectable (IM) packaged by a new syringe supplier and initial shipments of Ticlid to U.S. wholesalers. We believe sales in the second quarter of fiscal 1992 would have been lower than those in the fiscal 1993 second quarter were it not for these three events in the second quarter last year."
 Worldwide Human Pharmaceutical Sales
 ($ in millions)
 Three months ended Percent
 Jan. 31 FY 93 FY 92 Change
 U.S. Sales $300.9 $320.3 (6)
 Non-U.S. Sales 135.4 131.0 3
 Total $436.3 $451.3 (3)
 Total human pharmaceutical sales in the United States in the fiscal 1993 second quarter decreased 6 percent from sales in the second quarter in fiscal 1992. Sales in the fiscal 1993 second quarter were reduced by rebates of $10.5 million to state Medicaid agencies; rebates were $11.0 million in the prior-year second quarter.
 Non-United States human pharmaceutical sales increased by $4.4 million in the fiscal 1993 second quarter over the second quarter a year ago despite the negative impact of currency exchange fluctuations. In the second quarter of fiscal 1993, non-United States sales were $7.7 million lower than they would have been had currency exchange rates that were in effect in the second quarter of fiscal 1992 remained constant. This negative impact on sales was essentially offset by the effect of currency exchange rate changes on non-United States operating expenses.
 Combined worldwide sales of the company's five newer products -- Toradol, Cytovene, Cardene(R) (nicardipine hydrochloride), Ticlid and Synarel(R) (nafarelin acetate) -- represented 30 percent of total human pharmaceutical sales in the second quarter of fiscal 1993. Those products comprised 23 percent of total human pharmaceutical sales in the second quarter a year ago.
 In the fiscal 1993 second quarter, U.S. sales of Naprosyn(R) (naproxen) and Anaprox(R) (naproxen sodium) decreased 17 percent versus the prior year second quarter, due to continued pressure from new, competing products and to the reduction of wholesaler inventories through last November.
 "Beginning in January, we shifted our marketing emphasis in the United States from introducing some of our newer products to increasing our sales calls to educate physicians about Naprosyn and Anaprox," Mr. Freiman said.
 Spending for research and development in the second quarter of fiscal 1993 was $100.1 million, a 13-percent increase over the second quarter a year ago.
 "We are maintaining a strong commitment to high priority research and development projects," Mr. Freiman said. "We currently have a number of potentially exciting compounds in clinical trials and are undertaking studies to demonstrate not only their clinical safety and efficacy, but also their cost-effectiveness to the total health care system. This is an important additional step that is necessary in the increasingly cost-conscious health care environment. We are also continuing to implement a major program to reduce the time required for drug development."
 In conjunction with the company's cost reduction and restructuring program announced in the first quarter of fiscal 1993, Syntex has also announced it will consolidate its pharmaceutical manufacturing capacity by closing its manufacturing plant in Palo Alto, Calif., over the course of the next two years. The Palo Alto plant employs approximately 20 percent of the company's total pharmaceutical manufacturing work force. Production of products now manufactured at the Palo Alto plant will be moved primarily to existing Syntex manufacturing facilities. Syntex will maintain its U.S. administrative headquarters, research headquarters and U.S. pharmaceutical marketing organization in Palo Alto. The company will also consolidate its three pharmaceutical manufacturing plants in Europe into one over the next three years. The costs associated with the United States and European pharmaceutical manufacturing facility consolidations were included in the fiscal 1993 first quarter restructuring charge of $180 million.
 Under authorization by the Board of Directors, the company purchased 3.6 million shares of its common stock in the fiscal 1993 second quarter for $85.0 million. In the first half of fiscal 1993, the company purchased a total of 5.1 million shares for $124.7 million. The share purchases had no material effect on earnings per share for the fiscal 1993 second quarter or first half.
 Consolidated statements of income and sales by location and business segment follow.
 SYNTEX CORPORATION AND SUBSIDIARY COMPANIES
 Consolidated Statements of Income
 (In millions, except per-share amounts)
 Second Quarter Percent First Half Percent
 FY1993 FY1992 Change FY1993 FY1992 Change
 Net sales $505.5 $523.6 (3) $997.7 $1,025.3 (3)
 Costs and expenses:
 Cost of goods sold 96.2 99.4 (3) 200.3 190.9 5
 Selling, general &
 administrative 187.6 194.2 (3) 390.7 372.7 5
 Research &
 development 100.1 88.2 13 197.5 173.4 14
 Restructuring charge -- -- n/a 180.0 -- 100+
 Total 383.9 381.8 1 968.5 737.0 31
 Operating income 121.6 141.8 (14) 29.2 288.3 (90)
 Nonoperating income
 (expense):
 Interest income 9.9 13.5 (27) 21.5 27.9 (23)
 Interest expense (7.4) (8.4) 12 (13.7) (16.0) 14
 Other -- net -- (7.2) 100+ (56.0) (8.4) (100+)
 Total 2.5 (2.1) 100+ (48.2) 3.5 (100+)
 Income (loss) before
 taxes on income &
 cumulative effect
 of accounting
 changes 124.1 139.7 (11) (19.0) 291.8 (100+)
 Provision (benefit)
 for taxes on income 5.0 18.1 (72) (132.9) 37.9 (100+)
 Income before
 cumulative effect
 of accounting
 changes 119.1 121.6 (2) 113.9 253.9 (55)
 Cumulative effect of
 accounting changes,
 net of tax -- -- N/A (.9) -- (100+)
 Net income $119.1 $121.6 (2) $113.0 $253.9 (55)
 Shares used in
 computing earnings
 per common share 222.3 225.3 N/A 223.7 225.2 N/A
 Earnings per common
 share $.54 $.54 -- $.51 $1.13 (55)
 The second quarter and first half of fiscal 1992 have been restated to reflect a reclassification of cash discounts as a reduction of net sales rather than as selling, general and administrative expense, as previously recorded. All current and future periods will report sales net of cash discounts.
 SYNTEX CORPORATION AND SUBSIDIARY COMPANIES
 Sales by Location and Business Segment
 ($ in millions)
 Second Quarter Percent First Half Percent
 FY1993 FY1992 Change FY1993 FY1992 Change
 Location
 U.S. sales $348.4 $371.3 (6) $676.6 $ 734.0 (8)
 Non-U.S. sales 157.1 152.3 3 321.1 291.3 10
 Total $505.5 $523.6 (3) $997.7 $1,025.3 (3)
 Business Segment
 Pharmaceuticals:
 Pain/inflammation:
 Naproxen/naproxen
 sodium
 U.S. sales $156.3 $187.3 (17) $303.3 $ 391.2 (22)
 Non-U.S. sales 61.4 62.2 (1) 126.7 119.7 6
 Total Naproxen/
 naproxen
 sodium 217.7 249.5 (13) 430.0 510.9 (16)
 Ketorolac
 U.S. sales
 Oral 31.6 -- 100+ 55.8 -- 100+
 Intramuscular 31.1 39.0 (20) 59.3 56.7 5
 Non-U.S.
 sales 15.5 12.0 29 30.9 18.0 72
 Total Ketorolac 78.2 51.0 53 146.0 74.7 95
 Subtotal 295.9 300.5 (2) 576.0 585.6 (2)
 Reproductive
 and
 endocrinology:
 Oral
 contra-
 ceptives 20.6 26.3 (22) 41.1 54.6 (25)
 Nafarelin 5.6 6.9 (19) 12.2 14.0 (13)
 Other 2.8 3.3 (15) 5.3 6.5 (18)
 Subtotal 29.0 36.5 (21) 58.6 75.1 (22)
 Cardio and
 cerebrovascular:
 Nicardipine 17.8 23.3 (24) 33.7 43.8 (23)
 Ticlopidine 10.4 5.4 93 18.5 6.2 100+
 Subtotal 28.2 28.7 (2) 52.2 50.0 4
 Dermatological 21.7 27.4 (21) 44.3 55.4 (20)
 Ganciclovir 19.6 16.9 16 38.7 34.0 14
 Other human
 pharma-
 ceuticals 41.9 41.3 1 81.5 82.0 (1)
 Animal health 18.2 21.5 (15) 40.7 41.3 (1)
 Total
 pharma-
 ceuticals 454.5 472.8 (4) 892.0 923.4 (3)
 Diagnostics 51.0 50.8 -- 105.7 101.9 4
 Total $505.5 $523.6 (3) $997.7 $1,025.3 (3)
 Worldwide
 Human
 Pharmaceutical
 Sales
 U.S. sales $300.9 $320.3 (6) $576.1 $632.4 (9)
 Non-U.S. sales 135.4 131.0 3 275.2 249.7 10
 Total $436.3 $451.3 (3) $851.3 $882.1 (3)
 -0- 2/26/93
 /CONTACT: Nancy Peterson, 415-855-5567, or Kathleen Gary, 415-855-5924, or Linda Thomas, 415-852-1321, all of Syntex Corporation/
 (SYN)


CO: Syntex Corporation ST: California IN: MTC SU: ERN

TS -- NY014 -- 0769 02/26/93 10:11 EST
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