BERGEN SHOWS DOUBLE-DIGIT FIRST QUARTER SALES GROWTH BUT PROFITS ARE OFF 53%; REVCO FIRST QUARTER NET EARNINGS JUMP 94%, BUYOUT IS APPROVED
Bergen Brunswig reported an 11% jump in first quarter sales. For the three months ended Nov. 30, volume was $846 mil., compared to $760 mil. for the same 1985 period. The wholesaler's n et earnings, however, plummeted 53% during the period, to $2.9 mil. from $6.2 mil. the previous year. The results appear to reflect Bergen's aggressive acquisition activity during the last two years when the wholesaler acquired six regional distribution companies with total sales of $853 mil. "Consolidation of facilities and integration of recent acquisitions in the drug and health care segment are ahead of schedule, contributing to lower operating expenses and interest expense reduction," Chairman Emil Martini noted. Revco reported a 94.3% jump in profits for the 12 weeks ended Nov. 15, from $5.5 mil. to $10.8 mil. Volume was up 7.6% to $647.2 mil. during the period. The chain's 24-week volume through Nov. 15 was $1.3 bil., up 7.4% from $1.2 bil. in 1985, while net earnings were up nearly 16%, from $14.8 mil. to $17.1 mil. Revco also said that its proposed $1.3 bil., or $38.50 a share leveraged buyout offer has been approved by 75% of its shareholders. The chain is being taken private by Anac Holding Corp., an investor group that includes Chairman Sidney Dworkin, President William Edwards and 33 other members of current Revco management. Chart omitted.
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