MALLINCKRODT MEDICAL QUARTERLY SALES CLIMB 17%; FY 1994 SALES ARE $912 MIL.
Executive Summary
Mallinckrodt Medical sales climbed 17% to $263 mil. for the company's fiscal fourth quarter ended June 30, Mallinckrodt reported Aug. 9.
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Mallinckrodt Medical sales climbed 17% to $263 mil. for the company's fiscal fourth quarter ended June 30, Mallinckrodt reported Aug. 9. "Anesthesiology, cardiology and radiology accounted for much of the increase," the company said. The Mallinckrodt Medical segment contributed operating earnings of $61.3 mil., up 25%, before a restructuring charge of $74 mil. announced in June ("The Pink Sheet" June 20, T&G-2). Mallinckrodt Medical sales were up 16% for the year to $912 mil. The increase came "in spite of higher discounts to meet competition in certain products and unfavorable currency effects when compared to last year," the firm said. "Anesthesiology and critical care, with acquisitions continuing as important factors, led the way in year-to-year growth," Mallinckrodt said. "Other segments also contributed to the improved 1994 results, but were more significantly influenced by slower volume growth and increased pricing pressures." Mallinckrodt restructured its medical division to centralize its sales functions. The company cited margin pressure on its imaging products, including Optiray. Since the restructuring began, the competitive landscape for imaging products has altered, with European companies in the process of buying Mallinckrodt's two major domestic competitors. Nycomed and Bracco are acquiring the Sterling and Squibb imaging businesses, respectively. Mallinckrodt also has two new products to boost its margins: the oncology imaging agent OctreoScan was approved in June and the ultrasound contrast agent Albunex was approved Aug. 5. |