ST. LOUIS, May 17 /PRNewswire/ -- During a Mallinckrodt Inc. (NYSE: MKG)
investment community meeting held here today, the company's management said it
is comfortable with a FY2000 earnings per share range of $2.50 to $2.60.
Sales and operating earnings are estimated to grow in the 4 to 6 percent range
after absorbing an estimated 2 to 3 percent price erosion. C. Ray Holman,
chairman and chief executive officer, said that actual price erosion could
turn out to be less severe, depending on market conditions.
In opening remarks, Holman told investors, analysts and bankers at the
meeting that within the past three years Mallinckrodt has transformed itself
into a "new company, with a new look, a new competitive spirit and a single
new focus -- healthcare. We have a billion dollar U.S. hospital products
business, ranking us in the top ten producers of medical supplies. Overall,
our size, breadth and leadership position us well for the future.
"Not only is the medical supplies market large; it is growing at a
respectable overall annual rate of at least 6 percent," Holman said. "We
believe our product lines for respiratory care, diagnostic imaging and
analgesic pharmaceuticals put us in the right market segment, at the right
time. In fact, the markets we serve are growing faster than the overall
medical supplies market."
In Respiratory, sales growth of 7 to 8 percent will be driven by market
growth and new products such as perinatal oximetry, new product platforms in
the alternate care businesses and the ability to connect the entire
respiratory product line together to provide lower cost for the hospital and
better care for the patient. Operating earnings in the respiratory group are
expected to be up strongly as the business continues to benefit from the
synergies achieved from the Nellcor Puritan Bennett acquisition as well as
ongoing strategic cost management to improve manufacturing techniques and
purchasing.
In Imaging, sales growth in the ultrasound and radiopharmaceuticals
markets and licensing complementary products for distribution may be offset by
continued lower pricing in X-ray contrast media, resulting in flat sales.
Reductions in manufacturing and administrative costs will partially offset the
lower pricing in X-ray contrast media, but operating earnings will likely be
down from fiscal 1999.
Pharmaceuticals will continue to build its position in dosage products by
entering the brand/NDA area. Another high growth focus will be adding
pemoline and dextroamphetamine to Mallinckrodt's product offering for
attention deficit disorder. Biotech custom peptides offer longer-term
opportunities for growth. For FY2000, sales growth of 7 to 8 percent can be
expected, with operating earnings expected to grow at a similar rate.
Based in St. Louis, Mo., Mallinckrodt Inc. has three healthcare product
groups -- Respiratory, Imaging and Pharmaceuticals. The company operates in
more than 100 countries and had fiscal 1998 net sales of $2.4 billion. The
Mallinckrodt web site address is http://www.mallinckrodt.com.
This news release contains forward-looking statements that involve risks
and uncertainties. Forward-looking statements may be identified by their use
of words such as "plans," "expects," "will" "anticipates," "believes" and
other words of similar meaning. These statements are based on current
expectations; actual results may differ materially. Among the factors that
could cause actual results to differ materially from those projected are the
following: the effect of business and economic conditions; the impact of
competitive products and continued pressure on prices realized by the company
for its products; constraints on supplies of raw materials used in
manufacturing certain of the company's products; capacity constraints limiting
the production of certain products; difficulties or delays in the development,
production, testing, and marketing of products; difficulties or delays in
receiving required governmental or regulatory approvals; market acceptance
issues, including the failure of products to generate anticipated sales
levels; difficulties in rationalizing acquired businesses and in realizing
related cost savings and other benefits; the effects of and changes in trade,
monetary and fiscal policies, laws and regulations; foreign exchange rates and
fluctuations in those rates; the costs and effects of legal and administrative
proceedings, including environmental proceedings and patent disputes involving
the company; difficulties or delays in addressing "Year 2000" problems in the
company's operations, or the inability of a major supplier or customer to
continue operations due to such problems; and the risk factors reported from
time to time in the company's SEC reports. The Company undertakes no
obligation to update any forward-looking statements as a result of future
events or developments.
SOURCE Mallinckrodt Inc.
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http://www.mallinckrodt.com
Company News On-Call:
http://www.prnewswire.com/comp/440950.html or fax,
800-758-5804, ext. 440950
CONTACT:
Media, Barbara Abbett, 314-654-5230, or
e-mail, Communications@mkg.com, or Investors, Barbara Gould,
314-654-3190, or e-mail, Invest@mkg.com, both of Mallinckrodt
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