Sales ahead 30.8% at Bindley Western.
Sales ahead 30.8% at Bindley Western
INDIANAPOLIS - Bindley Western Industries Inc., facing a full-year comparison weighed down by both extraordinary and special charges, recorded exponential earnings growth during 1990.
The wholesaler, which specializes in distributing prescription and over-the-counter drugs to chain drug warehouses, registered net income of $6.66 million, compared with earnings of $2.61 million in 1989. Sales grew 30.8% to $2.04 billion from $1.56 billion.
Last year's net was hurt by a special charge of $2.98 million related to the write-off of an account receivable from Revco D.S., and an extraordinary net charge of $523,000 stemming from a settlement with the government. Taking those factors into consideration, as well as others, 1990 earnings still exceeded the prior year's adjusted profits of $4.98 million by some 34%.
During the fourth quarter Bindley Western scored a 34.7% volume jump to $603.9 million from $448.2 million, while earnings bounded to $1.92 million from just $7,000. The aforementioned Revco write-down was accounted for during the fourth quarter of 1989.
Chairman and chief executive officer William Bindley says that management is pleased with the company's performance. He adds that all of the company's goals were either met or exceeded. Management was particularly enthused that the company exceeded earnings goals despite a $2 million increase in its LIFO charge.
Just about all of the company's operating units contributed to the improved performance. Sales for the high-margin, direct-store delivery business jumped 33% during the year to $363 million. And the food distribution operation that was acquired in 1989 contributed nearly $500,000 to pretax earnings, even though it was in place in only 70% of the company's divisions at year-end.
Bindley Western serves customers in 39 states through distribution centers in Atlanta; Brockton, Mass.; Charlotte, N.C.; Dallas; Houston; Indianapolis; North Hollywood, Calif.; Orlando, Fla.; Phoenix; and Stamford, Conn.
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|Title Annotation:||Bindley Western Industries|
|Publication:||Chain Drug Review|
|Date:||Apr 8, 1991|
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