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UPJOHN EARNINGS PER SHARE UP 10 PERCENT IN FIRST QUARTER

 UPJOHN EARNINGS PER SHARE UP 10 PERCENT IN FIRST QUARTER
 KALAMAZOO, Mich., April 15 /PRNewswire/ -- The Upjohn Company


(NYSE: UPJ) today reported that 1992 first-quarter primary earnings per share of 80 cents were 10 percent higher than the 73 cents per share earned in first-quarter 1991. Net earnings of $144 million increased 8 percent over year-earlier levels on sales of $872 million, which rose 9 percent.
 Commenting on the company's results, Chairman of the Board and Chief Executive Officer Theodore Cooper said: "Our first-quarter results reflect continued sales and earnings growth. At the same time we continued to invest in important research and development and marketing programs that are building a solid foundation for the future. We continued our strong commitment to research and development by increasing spending 10 percent over last year. This investment included accelerated enrollment in our clinical testing of Freedox, the lazaroid compound being tested for the treatment of head injury, spinal cord injury, subarachnoid hemorrhage and ischemic stroke, and expanding our efforts in the anti-AIDS area. New marketing programs included the promotion campaign for Rogaine for females and the antidiabetes agent Glynase PresTab."
 Operating income of $186 million was up 3 percent from the first quarter of 1991 and amounted to 21 percent of sales, compared to $180 million, or 23 percent of sales, a year ago. Cost of products sold, research and development expense and marketing and administrative costs increased modestly as a percent of sales. In addition to new marketing programs, expansion of the sales force throughout 1991 and costs associated with joint marketing agreements also contributed to the increase in marketing and administrative costs, compared to the prior- year first quarter.
 Earnings before tax of $189 million were 4 percent greater than the $183 million earned in first-quarter 1991.
 Worldwide sales of human health care products increased 11 percent over first-quarter 1991 levels. Pharmaceutical sales growth was led by Provera, the progestational agent; Rogaine, the treatment for hair loss; Ansaid, the nonsteroidal anti-inflammatory agent; Micronase, the oral antidiabetes agent; and Xanax, the anti-anxiety agent. Sales in the U.S. benefited from special purchase incentives offered to customers at the end of the quarter.
 Noting that consolidated sales of the sleep medication, Halcion, were down 39 percent, Cooper said: "The company has cooperated fully with regulatory agencies worldwide as they review the safety and effectiveness of Halcion. We continue to support the product and welcome the opportunity to discuss the safety and effectiveness of Halcion at a Food and Drug Administration advisory committee meeting. We firmly believe that Halcion is a safe and effective product when used as recommended."
 Sales of nonprescription drugs Motrin IB, the internal analgesic, and Kaopectate, the treatment for diarrhea, also contributed to the sales growth.
 Pharmaceutical sales outside the U.S. were up 9 percent. These gains reflected increased volume of Xanax, the antibiotic Dalacin (Cleocin), and the injectable steroid Solu-Medrol; sales growth in countries of the former Soviet Union and Eastern Europe; and contributions from recent acquisitions in Germany and Australia. Unfavorable foreign exchange comparisons in Europe and declining sales of Halcion partially offset these gains.
 Worldwide agricultural sales remained at prior-year levels. Animal health sales were led by Naxcel, the antibiotic. Worldwide agronomic and U.S. vegetable seed sales were down because of unfavorable planting conditions in the U.S and lower sales in Europe. Non-U.S. vegetable seed sales were strong, with good volume increases in Italy and Mexico.
 Consolidated U.S. sales for the quarter were $530 million, up 10 percent from a year ago. Non-U.S. sales of $342 million were up 8 percent and amounted to 39 percent of consolidated sales. The consolidated sales increase resulted from a 4-percent increase in volume, a 6-percent increase in price and a 1-percent decrease from foreign currency fluctuations.
 The estimated annual effective tax rate for 1992 is 24 percent, compared to 27 percent in the first quarter of 1991. The lower rate resulted primarily from a greater proportion of total earnings from products produced in Puerto Rico and a lesser proportion of foreign income taxed at relatively higher rates. The lower rate increased per-share earnings by 3 cents for the quarter.
 "The net result of these actions and our ongoing emphasis on cost control measures was a respectable net margin of 16.5 percent for the quarter," Cooper added.
 The Upjohn Company is a worldwide, research-based provider of human health care products, animal health products, agronomic and vegetable seeds and specialty chemicals. Headquartered in Kalamazoo, the company has been dedicated to improving health and nutrition for more than a century.
 THE UPJOHN COMPANY and subsidiaries report for the quarter ended March 31, 1992 (unaudited; amounts in thousands, except per-share data):
 1992 1991
 Net sales $871,872 $799,365
 Other revenue 3,967 6,749
 Operating revenue 875,839 806,114
 Cost of products sold 234,867 212,557
 Research & development 126,439 115,332
 Marketing & administrative 328,908 297,896
 Operating income 185,625 180,329
 Interest income 13,765 11,899
 Interest expense (6,826) (5,434)
 Foreign exchange (losses) gains (1,029) 572
 All other, net (2,059) (4,360)
 Earnings before income
 taxes & minority equity 189,476 183,006
 Provision for income taxes 45,500 49,400
 Minority equity in earnings 256 330
 Net earnings 143,720 133,276
 Dividends on preferred stock 2,933 3,087
 Net earnings on common stock $140,787 $130,189
 Earnings per common share:
 Primary $.80 $.73
 Fully diluted .77 .71
 -0- 4/15/92
 /CONTACT: John P. Lambrechts of The Upjohn Company, 616-323-7076/
 (UPJ) CO: The Upjohn Company ST: Michigan IN: MTC SU: ERN


ML -- DE003 -- 8496 04/15/92 08:36 EDT
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Date:Apr 15, 1992
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