Executive Summary

Consumer businesses' sales growth "slower than anticipated," firm tells analysts July 17. Consumer Health Care sales in Q2 increased 1.7% to $608 mil., with strong performances by Benadryl, Sudafed, Actifed lines. Integration-related synergies from Warner-Lambert acquisition "continue to be larger and to come sooner than originally planned," firm says. Full-year 2001 merger-related savings now expected to reach about $1.3 bil., compared to prior estimate of $1.2 bil. In 2002, firm anticipates at least $1.6 bil. in merger-related savings stemming largely from elimination of redundant workforce positions, increased purchasing power and reduced operating expenses. Overall second quarter sales up 10% to $7.69 bil., driven by strong Rx sales