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UPJOHN REPORTS THIRD-QUARTER, NINE-MONTH SALES INCREASES; EARNINGS PER SHARE FLAT AFTER RESTRUCTURING CHARGES

 UPJOHN REPORTS THIRD-QUARTER, NINE-MONTH SALES INCREASES;
 EARNINGS PER SHARE FLAT AFTER RESTRUCTURING CHARGES
 KALAMAZOO, Mich., Oct. 15 /PRNewswire/ -- The Upjohn Company (NYSE: UPJ) today reported quarterly sales of $894 million, an increase of 8 percent over third-quarter 1991. Before restructuring charges, net earnings and primary earnings per share would have been $153 million or 85 cents per share, respectively. The after-tax restructuring charge of $15 million for the quarter resulted in net earnings of $138 million compared to $140 million in the third quarter of 1991. Primary earnings per share for the third quarter of 1992 were reduced 8 cents per share by restructuring charges and remained at the prior-year level of 77 cents.
 The 1992 restructuring included the net cost of the previously announced special voluntary early retirement program, which included a gain from a partial pension settlement, and separation payments in non- U.S. locations.
 Net earnings for the first nine months increased 3 percent over year-earlier levels on sales of $2.6 billion, which rose 6 percent.
 Commenting on the company's results, Chairman of the Board and Chief Executive Officer Theodore Cooper said: "While the restructuring charges constrained earnings growth in the third quarter, these actions were necessary and underscore our ongoing commitment to build a solid foundation for the future. We are making Upjohn a stronger global competitor in strategically important markets by selectively applying resources that will help us accelerate the development and marketing of innovative products."
 Operating income was $171 million, compared to $188 million in the third quarter of 1991. Cost of products sold increased slightly to 25 percent of sales compared to the third quarter of 1991. Marketing and administrative costs remained at 39 percent of sales. Research and development expense increased to 15 percent of sales compared to 14 percent in the third quarter of 1991.
 Earnings before tax were $174 million, compared to $186 million in the third quarter of 1991.
 Third-quarter operating income and earnings before tax included $24 million of restructuring charges. In the third quarter of 1991, operating income included a $5 million restructuring charge.
 Worldwide sales of human health care products increased 10 percent over third-quarter 1991 levels. Pharmaceutical sales growth was led by Provera, the progestational agent, and the oral antidiabetes agents Micronase and Glynase. Worldwide sales of antibiotics were up significantly, led by the family of Cleocin products and the U.S. launch of Vantin, the new broad-spectrum oral antibiotic. Sales of Xanax, the anti-anxiety agent, and Rogaine, the treatment for hair loss, also contributed to sales growth. Sales of Ansaid, the nonsteroidal anti- inflammatory agent, were down due to increased competition from new product introductions in 1992. Sales of the sleep medication, Halcion, were down 47 percent for the third quarter.
 Sales of nonprescription products Motrin IB, the internal analgesic, and Dramamine, the motion sickness medication, also contributed to the sales growth.
 Pharmaceutical sales outside the U.S. were up 16 percent. These gains reflected increased volume of Xanax; Provera; the antibiotic Dalacin (Cleocin); and the injectable steroid Solu-Medrol and favorable foreign exchange comparisons. Declining sales of Halcion in Japan and other markets partially offset these gains.
 Worldwide agricultural sales were down 4 percent from third-quarter 1991. Worldwide animal health and vegetable sales showed good growth. Animal health sales were led by Naxcel, the antibiotic. These gains were more than offset by a sharp decline in agronomic sales in the U.S. due to early plantings which shifted sales into the second quarter of 1992.
 The annual effective tax rate for 1992 is 23 percent, compared to 26 percent a year ago. The lower rate increased primary earnings per share 3 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 nine months ended Sept. 30, 1992 (unaudited; amounts in thousands, except per-share data):
 Third Quarter Nine Months
 1992 1991 1992 1991
 Net sales $894,364 $831,689 $2,649,807 $2,490,410
 Other revenue 6,313 4,288 19,249 15,676
 Operating revenue 900,677 835,977 2,669,056 2,506,086
 Cost of products sold 223,364 203,660 714,395 656,686
 Research & development 135,688 118,701 388,980 353,807
 Marketing &
 administrative 347,029 320,303 1,025,881 953,966
 Restructuring &
 non-recurring items 23,956 5,000 23,956 5,000
 Operating income 170,640 188,313 515,844 536,627
 Interest income 15,240 12,646 42,445 36,887
 Interest expense (7,949) (4,678) (22,890) (15,596)
 Foreign exchange
 (losses) gains (1,279) (333) (2,798) 3,595
 All other net (2,528) (10,007) 2,241 (17,153)
 Earnings before income
 taxes & minority
 interest 174,124 185,941 534,842 544,360
 Provision for income
 taxes 36,400 44,700 123,000 141,500
 Minority equity in
 (losses) earnings (173) 994 372 1,818
 Net earnings 137,897 140,247 411,470 401,042
 Dividends on preferred
 stock 2,929 3,089 8,794 9,267
 Net earnings on common
 stock $134,968 $137,158 $402,676 $391,775
 Earnings per common share:
 Primary $.77 $.77 $2.29 $2.20
 Fully diluted $.75 $.75 $2.22 $2.14
 -0- 10/15/92
 /CONTACT: John P. Lambrechts of The Upjohn Company, 616-323-7076/
 (UPJ) CO: The Upjohn Company ST: Michigan IN: MTC SU: ERN


ML -- DE002 -- 0214 10/15/92 08:36 EDT
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Date:Oct 15, 1992
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