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UPJOHN REPORTS SALES AND EARNINGS GREW IN FIRST QUARTER

 KALAMAZOO, Mich., April 15 /PRNewswire/ -- The Upjohn Company (NYSE: UPJ) today reported that 1993 first-quarter primary earnings per share before accounting changes were 85 cents, an increase of 12 percent over 1992. Sales for the first quarter were $933 million, compared to $872 million in 1992, an increase of 7 percent.
 Financial highlights listed below are in millions of dollars (except per-share amounts). Results for the first quarter of 1992 have been restated to reflect the adoption of new accounting standards. Unless noted otherwise, results exclude the cumulative effects of accounting changes in both years. The additional 1993 accounting change reflects the adoption of calendar-year financial reporting for subsidiaries that formerly reported on a Nov. 30 fiscal year.
 First Quarter
 Ended March 31,
 Percent
 1993 1992 change
 Net sales $933 $872 7
 Earnings before tax 199 181 10
 Earnings before
 accounting changes 152 138 11
 Primary earnings per share
 before accounting changes $.85 $.76 12
 Net earnings (includes cumulative
 effect of accounting changes) $145 $(85)
 Commenting on the company's results, President and Chief Operating Officer Ley S. Smith said: "Our first-quarter results reflect continued sales and earnings growth. During the past few years, we have strategically positioned the company for the challenging period ahead. We have continued to emphasize cost control measures, restructuring activities and the acceleration of important research and development efforts in our lazaroid and anti-AIDS therapies. We await the resolution of the debate over the reform of the U.S. health care system, confident that the strength of our product pipeline and the flexibility of our organization will result in a respectable ongoing performance."
 Operating income of $184 million was up 4 percent from the first quarter of 1992 and amounted to 20 percent of sales. Cost of products sold increased to 28 percent from 27 percent in the earlier quarter due to a change in product mix. Research and development expense remained at 16 percent of sales. Marketing and administrative costs decreased to 36 percent of sales, compared to 37 percent in the first quarter of 1992, as a result of continued emphasis on cost controls.
 A strong agricultural performance more than offset a slight decline in
human health care operating profit. Human health care segment operating profit includes a gain on the sale of the cough/cold medicine trademark, Orthoxicol, in Australia and New Zealand. The gain increased primary earnings per share by 7 cents.
 Worldwide sales of human health care products increased one percent over first-quarter 1992 levels. Pharmaceutical sales growth was led by antibiotics, which includes the family of Cleocin products and Vantin, the new broad-spectrum oral antibiotic introduced in the U.S. in 1992. Sales of the oral antidiabetes agents Micronase and Glynase, Xanax, the anti-anxiety agent, and the U.S. launch of Depo-Provera, the injectable contraceptive, also contributed to the sales growth.
 Sales of Ansaid, the nonsteroidal anti-inflammatory agent, Provera, the progestational agent, and Rogaine, the treatment for hair loss, were down in the first quarter of 1993. Rogaine was down significantly due to sales incentives in the fourth quarter of 1992, which slowed first- quarter 1993 sales, and a comparatively strong performance in the first quarter of 1992. Worldwide sales of the sleep medication, Halcion, were down 31 percent for the first quarter.
 Sales of nonprescription drugs Motrin IB, the internal analgesic, and Dramamine, the motion sickness medication, also made contributions to sales growth.
 Pharmaceutical sales outside the U.S. were up 3 percent. These gains reflected increased sales of the antibiotic Dalacin (Cleocin), Xanax and Depo-Provera and increased sales in developing markets, including Eastern Europe and Pakistan. Unfavorable foreign exchange comparisons in Europe reduced sales.
 Worldwide agricultural sales increased 33 percent over prior-year levels. Agronomic and vegetable seed sales increased significantly because of a fourth-quarter 1992 change in seed distribution in the U.S. cornbelt from an agent to a dealer system; a favorable comparison resulting from the switch to calendar versus fiscal year accounting; and strong hybrid corn sales in Mexico and Germany. Animal health sales were led by a strong performance by Naxcel, the antibiotic.
 Consolidated U.S. sales for the quarter were $577 million, up 9 percent from a year ago. Non-U.S. sales of $356 million were up 4 percent and amounted to 38 percent of consolidated sales.
 The estimated annual effective tax rate for 1993 is 24 percent, the same rate as applied to first-quarter earnings in 1992.
 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, 1993 (unaudited; amounts in thousands, except per-share data):
 1993 1992
 Net sales $932,658 $871,872
 Other revenue 5,942 3,967
 Operating revenue 938,600 875,839
 Cost of products sold 264,925 236,908
 Research & development 150,050 136,261
 Marketing & administrative 339,543 325,044
 Operating income 184,082 177,626
 Interest income 13,294 13,765
 Interest expense (8,724) (6,826)
 Foreign exchange losses (1,865) (1,029)
 All other, net 12,385 (2,059)
 Earnings before income taxes,
 accounting changes
 and minority equity 199,172 181,477
 Provision for income taxes 47,800 43,600
 Minority equity in (losses) earnings (997) 256
 Earnings before cumulative effect
 of accounting changes 152,369 137,621
 Cumulative effect of
 accounting changes (7,791) (222,895)
 Net earnings (loss) 144,578 (85,274)
 Dividends on preferred stock 3,041 2,984
 Net earnings (loss)
 on common stock $141,537 ($88,258)
 Earnings per common share:
 Primary - Earnings before
 accounting changes $0.85 $0.76
 - Cumulative effect of
 accounting changes ($0.04) ($1.26)
 - Net earnings (loss) $0.81 ($0.50)
 Fully - Earnings before
 Diluted accounting changes $0.83 $0.74
 - Cumulative effect of
 accounting changes ($0.04) ($1.21)
 - Net earnings (loss) $0.79 ($0.47)
 -0- 4/15/93
 /CONTACT: (Media) John P. Lambrechts, 616-323-7076, or (Investors) Barbara L. Guinness, 616-323-5918, both of Upjohn/
 (UPJ)


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

ML -- DE002 -- 6025 04/15/93 08:35 EDT
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Date:Apr 15, 1993
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