Printer Friendly

UPJOHN REPORTS 1992 RESULTS; FOURTH-QUARTER EPS UP 13 PERCENT

 KALAMAZOO, Mich., Feb. 3 /PRNewswire/ -- The Upjohn Company (NYSE: UPJ) today reported 1992 sales of $3.6 billion, an increase of 7 percent over 1991 levels. Earnings were $562 million, up 4 percent from a year ago, and earnings per share were $3.12, up 5 percent. Net earnings for the fourth quarter were $154 million, an increase of 13 percent, on sales of $989 million. These results exclude the cumulative effects of accounting changes adopted in the fourth quarter of 1992, which were made effective as of Jan. 1, 1992, but include the increased annual expense of these accounting changes. The results also exclude restructuring charges that were recorded in the third quarters of 1992 and 1991 (see table below).
 Financial highlights listed below are in millions of dollars (except per share amounts):
 Fourth Quarter Ended December 31,
 1992 1991 Pct. change
 Net sales $989 $911 9
 Net earnings 154 136 13
 Primary earnings per share $.86 $.76 13
 Year Ended December 31,
 1992 1991 Pct. change
 Net sales $3,639 $3,402 7
 Earnings before restructuring
 and the cumulative effect of
 accounting changes 562 540 4
 Earnings per share before
 restructuring and the cumulative
 effect of accounting changes $3.12 $2.98 5
 Net earnings after restructuring
 and accounting changes(a) $324 $537
 Primary earnings per share after
 restructuring and accounting
 changes(a) $1.78 $2.96
 (a) Adoption of accounting standards reduced 1992 net earnings and primary earnings per share $223 million and $1.26, respectively. Restructuring charges reduced net earnings $15 million ($.08 per share) and $3 million ($.02 per share) in 1992 and 1991, respectively.
 Commenting on the company's results, Chairman of the Board and Chief Executive Officer Theodore Cooper said: "We achieved solid performance in 1992 despite numerous challenges, including a 45 percent decline in worldwide sales of our sleep medication Halcion. Significant accomplishments in 1992 included: clearance to market eight new products and product-line extensions in the U.S.; acceleration of important development programs for Freedox, the lazaroid compound being tested for the treatment of subarachnoid hemorrhage, head injury, spinal cord injury and ischemic stroke; expansion of our research efforts to develop effective anti-AIDS compounds; a collaborative agreement with Boehringer Ingleheim to develop and market worldwide central nervous system compounds for the treatment of schizophrenia, Alzheimer's and Parkinson's diseases; and a continued emphasis throughout our global operations on cost-control measures. These accomplishments have enhanced our competitive position and improved our prospects for long- term profitability."
 During the fourth quarter, the company adopted two Financial Accounting Standards Board (FASB) statements. FASB 106 requires that the estimated cost of post-retirement benefits other than pensions be recognized during employees' active working careers.
 Previous accounting standards allowed these costs to be recorded on a pay-as-you-go, or cash, basis. FASB 109 (accounting for income taxes), requires an asset and liability approach be taken with regard to book-tax
temporary differences. The new standards were applied retroactively to Jan. 1, 1992, and previously reported 1992 results will be restated.
 The net effect of the adoptions was a one-time after-tax charge of $223 million or $1.26 per share. The charges are non-cash items.
 Fourth-quarter 1992 operating income was $191 million, compared to $177 million in 1991. Full-year 1992 operating income was $682 million or 19 percent of sales, compared to $713 million, or 21 percent of sales, in 1991.
 Cost of products sold increased to 27 percent of full-year 1992 sales from 26 percent a year ago. Research and development expense increased to 15 percent of sales compared to 14 percent in 1991. Marketing and administrative costs remained at 39 percent of sales for the year.
 Worldwide sales of human health care products increased 7 percent in the fourth quarter and year. Annual sales growth rates were led by Provera, the progestational agent.
 Worldwide sales of antibiotics were up significantly, led by the family of Cleocin products and Vantin, the new broad-spectrum oral antibiotic introduced in the third quarter of 1992.
 Sales of Micronase and Glynase, the oral antidiabetes agents; Xanax, the anti-anxiety agent; Solu-Medrol, the injectable steroid; and Rogaine, the treatment for hair loss, also contributed to worldwide growth. Annual sales of the nonsteroidal anti-inflammatory agent, Ansaid, were down moderately. As noted earlier, annual sales of Halcion were down significantly.
 Sales of Motrin IB, the nonprescription internal analgesic, Dramamine, the market-leading over-the-counter motion sickness medication, and Kaopectate, the treatment for diarrhea, contributed to a strong 1992 sales performance in the Consumer Products Division.
 Pharmaceutical sales outside the U.S. surpassed $1 billion for the first time and increased 8 percent in 1992. These gains reflected increased sales of Provera products, the antibiotic Dalacin (Cleocin), Xanax, Solu-Medrol, and sales from recent-year acquisitions in Australia and Germany. Sales growth in Mexico and Eastern European countries was particularly strong.
 Worldwide agricultural sales were up 19 percent for the fourth quarter and 6 percent for the year. All agricultural businesses contributed to the annual sales growth. The worldwide animal health business was led by Lutalyse, the fertility-control agent, and the antibiotic, Naxcel. A change in the seed distribution system in the U.S. cornbelt from an agent to a dealer system contributed to the sales gain in the fourth quarter.
 Consolidated U.S. sales for 1992 were $2.3 billion, up 6 percent from a year ago. Non-U.S. sales were up 8 percent, totaling $1.4 billion, and amounted to 38 percent of consolidated sales.
 The annual effective tax rate for 1992 was 22 percent, compared to 25 percent in 1991. The rate for 1992 was reduced in the fourth quarter from 23 percent to 22 percent and increased primary earnings per share by 4 cents for the quarter.
 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 and year ended December 31, 1992 (amounts in thousands, except per-share data):
 Fourth Quarter Year
 1992 1991 1992 1991
 Net sales $989,118 $911,389 $3,638,925 $3,401,799
 Other revenue 10,692 8,838 29,941 24,514
 Operating revenue 999,810 920,227 3,668,866 3,426,313
 Cost of products sold 261,055 217,970 981,574 874,656
 Research & development 154,079 137,258 548,546 491,065
 Marketing & administrative 394,170 388,417 1,432,436 1,342,383
 Restructuring 23,956 5,000
 Operating income 190,506 176,582 682,354 713,209
 Interest income 14,174 14,624 56,619 51,511
 Interest expense (8,363) (4,360) (31,253) (19,956)
 Foreign exchange (losses)
 gains (1,414) 570 (4,212) 4,165
 All other, net (5,566) (11,572) (3,325) (28,725)
 Earnings before income
 taxes & minority interest 189,337 175,844 700,183 720,204
 Provision for income taxes 36,500 38,600 154,000 180,100
 Minority equity in (losses)
 earnings (1,406) 867 (1,034) 2,685
 Earnings before cumulative
 effect of accounting
 changes 154,243 136,377 547,217 537,419
 Cumulative effect of accounting
 changes (net of tax) (222,895)
 Net earnings 154,243 136,377 324,322 537,419
 Dividends on preferred
 stock 3,028 3,089 12,084 12,356
 Net earnings on common
 stock $151,215 $133,288 $312,238 $525,063
 Earnings per common share:
 Primary - Earnings before
 accounting changes $0.86 $0.76 $3.04 $2.96
 - Cumulative effect
 of accounting
 changes (1.26)
 - Net earnings $0.86 $0.76 $1.78 $2.96
 Fully - Earnings before
 accounting changes $0.83 $.073 $2.95 $2.87
 Diluted - Cumulative effect
 of accounting changes (1.21)
 - Net earnings $0.83 $0.73 $1.74 $2.87
 -0- 2/3/93
 /CONTACT: (Media) John Lambrechts, 616-323-7076, or (Investor) Barbara L. Guinness, 616-323-5918, both of Upjohn/
 (UPJ)


CO: The Upjohn Company ST: Michigan IN: MTC SU: ERN

DH-ML -- DE001 -- 2217 02/03/93 08:07 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 3, 1993
Words:1341
Previous Article:HALIFAX DECLARES SEMIANNUAL DIVIDEND
Next Article:PROVENA FOODS INC. REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS
Topics:


Related Articles
STRATEGIES FOR THE FUTURE HIGHLIGHT UPJOHN ANNUAL MEETING
UPJOHN REPORTS THIRD-QUARTER, NINE-MONTH SALES INCREASES; EARNINGS PER SHARE FLAT AFTER RESTRUCTURING CHARGES
COSTCO WHOLESALE ANNOUNCES FISCAL 1992 RESULTS
AMERICAN HOME PRODUCTS CORPORATION REPORTS RECORD SALES AND EARNINGS FOR 1992,
RYAN'S FAMILY STEAK HOUSES, INC. REPORTS RECORD FOURTH QUARTER AND FISCAL 1992 RESULTS
WARNER-LAMBERT REPORTS SALES AND EARNINGS; 15 PERCENT EPS GAIN FOR 1992
UPJOHN REPORTS SALES AND EARNINGS GREW IN FIRST QUARTER
UPJOHN REPORTS RECORD SALES IN SECOND QUARTER; SIX-MONTH SALES UP 5 PERCENT; HUMAN HEALTH CARE SALES UP 16 PERCENT IN QUARTER
UPJOHN RESULTS BENEFIT FROM STRONG PERFORMANCE IN INTERNATIONAL MARKETS AND COST CONTROL MEASURES
UPJOHN SHAREHOLDERS APPROVE MERGER WITH PHARMACIA AB

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters