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UNITED STATES SURGICAL ANNOUNCES 24 PERCENT INCREASE IN EARNINGS PER SHARE ON SALES INCREASE OF 18 PERCENT FOR THE FIRST QUARTER 1993

 NORWALK, Conn., April 15 /PRNewswire/ -- United States Surgical Corporation (NYSE: USS) today reported record sales and strong earnings for the first quarter 1993. Sales increased 18 percent to $326 million versus $277 million for the comparable 1992 quarter. Net income and net income per share rose 21 percent and 24 percent, respectively, to $36 million or $.61 per share compared to $30 million or $.49 per share in the first quarter of 1992.
 Leon C. Hirsch, Chairman, said, "As our nation struggles to reverse the upward spiral of health care spending, USSC continues to find new ways to be part of the solution, rather than part of the problem."
 "As a result of the positive reaction to the company experimenting with a Just-In-Time (JIT) program by test hospitals, the company significantly accelerated its JIT program during the latter part of the quarter. The introduction of the program contributed to increased sales volumes in the first quarter of 1993. Hospitals report that JIT answers their need to reduce inventory levels and the costs connected with handling large inventories. JIT benefits the company because the distributor warehouses and handles hospital inventory, providing more time for the company's technical sales force to support its customers with training programs and other teaching efforts. The new JIT distributor relationship also eliminates the distributors' incentive to promote competing brands.
 "The large number of independent distributor accounts added during the first quarter and distributors' purchases of inventory will result in significantly reduced sales for the second and third quarters of this year as hospitals use up their inventories. Currently the company expects second quarter sales to be flat or slightly down from the prior year's comparable quarter, followed by an improving trend in the third quarter and a strong fourth quarter. Despite the expected reduction in revenues short term, the company will continue its aggressive surgical training programs and will expand its research and development expenditures to promote future growth. These continuing expenses will result in sharply lower second quarter earnings, with sequential earnings improvement in the third quarter and strong improvement in the fourth quarter. Although the short term sales and profit impact of this program will be negative, the company believes long term, JIT servicing will put it in a more competitive position in dealing with its customers."
 United States Surgical Corporation is the world's largest manufacturer and marketer of surgical staplers, the leader in the growing field of minimally invasive surgery and a recent entrant into the suture market.
 UNITED STATES SURGICAL CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited, in thousands except per share data)
 Periods ended March 31 Three Months Ended
 1993 1992
 Net sales $326,300 $277,100
 Costs and expenses:
 Cost of products sold 138,800 116,600
 Research and development 14,900 8,200
 Selling, administrative and general 119,800 106,800
 Interest 3,500 4,200
 Total costs and expenses 277,000 235,800
 Income before income taxes 49,300 41,300
 Income taxes 13,300 11,600
 Net income $ 36,000 $ 29,700
 Average number of common shares and common
 share equivalents outstanding 59,100 60,700
 Net income per common share and common
 share equivalent $.61 $.49
 Dividends paid per common share $.075 $.075
 UNITED STATES SURGICAL CORPORATION
 Consolidated Balance Sheets
 (Unaudited, in thousands)
 Periods ended March 31
 1993 1992
 ASSETS
 Cash $ 2,400 $ 2,700
 Receivables (net) 313,800 212,800
 Inventories 217,800 193,100
 Other current assets 46,800 65,800
 Total Current Assets 580,800 474,400
 Property, plant, and equipment (net) 578,700 325,100
 Other assets (net) 149,900 54,100
 Total Assets $1,309,400 $853,600
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities $ 211,900 $140,200
 Long-term debt 435,000 302,600
 Deferred income taxes 42,900 37,100
 Stockholders' Equity:
 Common stock 6,400 6,200
 Additional paid-in capital 351,600 211,200
 Retained earnings 362,600 233,900
 Treasury stock (86,700) (71,500)
 Other (14,300) (6,100)
 Stockholders' Equity 619,600 373,700
 Total Liabilities and
 Stockholders' Equity $1,309,400 $853,600
 -0- 4/15/93
 /CONTACT: Marianne Scipione, vice president-corporate communications of United States Surgical Corporation, 203-845-1404/
 (USS)


CO: United States Surgical Corporation ST: Connecticut IN: MTC SU: ERN

TM -- NY104 -- 6432 04/15/93 16:20 EDT
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Publication:PR Newswire
Date:Apr 15, 1993
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