Schering-Plough Reports Sales, Earnings for 2001 First Quarter

2001 First Quarter Diluted Earnings Per Share Down 10% to 38 cents



Apr 17, 2001, 01:00 ET from Schering-Plough Corporation

    KENILWORTH, N.J., April 17 /PRNewswire/ --
 Schering-Plough Corporation (NYSE:   SGP) today reported that first quarter 2001
 diluted earnings per share declined 10 percent to 38 cents on net income of
 $564 million versus 42 cents per share on net income of $628 million in 2000.
 First quarter 2001 sales of $2.3 billion were 3 percent lower than last year's
 $2.4 billion.  Excluding exchange, first quarter sales decreased 1 percent.
     The company had projected in a Feb. 15, 2001, press release reporting on
 manufacturing process and control issues and facility inspections by the U.S.
 Food and Drug Administration (FDA) that first quarter sales and earnings would
 be lower than expected.  In the release, the company stated that first quarter
 2001 diluted earnings per share would be lower by as much as 15 percent versus
 the prior year's first quarter.
     "Schering-Plough is moving aggressively and deliberately to resolve the
 manufacturing issues that affected our performance in the first quarter," said
 Richard Jay Kogan, chairman and chief executive officer.  "We have responded
 to the FDA's facility inspection reports, continue to work on completing our
 Good Manufacturing Practices (GMP) initiatives, have undertaken major
 organizational changes in manufacturing and control operations, and are
 developing a comprehensive plan that will incorporate the initiatives already
 begun and establish systems for sustaining GMP compliance throughout the
 organization.  Further, we have retained consultants to assist in designing,
 implementing and auditing these improvements," he said.
     In the 2001 first quarter, worldwide pharmaceutical sales totaled
 $1.9 billion, down 3 percent (down 1 percent when foreign exchange is
 excluded).  Lower sales for the first quarter 2001 were recorded in all of the
 major therapeutic categories except anti-infective/anticancer, where higher
 sales were achieved.  Worldwide sales of the CLARITIN(R) (loratadine)
 nonsedating antihistamine line, the world's No. 1 antihistamine, grew
 8 percent to $718 million.  First quarter 2001 worldwide sales of NASONEX(R)
 (mometasone furoate monohydrate) Nasal Spray, a once-daily nasal-inhaled
 steroid for allergies, increased 13 percent to $92 million.  Combined sales of
 the anti-infective/anticancer agent INTRON(R) A (interferon alfa-2b);
 PEG-INTRON(TM) (peginterferon alfa-2b), a longer-acting form of INTRON A; and
 REBETRON(TM) Combination Therapy containing INTRON A and REBETOL(R)
 (ribavirin, USP) Capsules, totaled $326 million, down 3 percent versus the
 comparable year-ago period.
     Also contributing to first quarter worldwide sales were TEMODAR(R)
 (temozolomide), for treating certain types of brain tumors, with sales of
 $43 million; INTEGRILIN(R) (eptifibatide) Injection, a glycoprotein platelet
 aggregation inhibitor for the treatment of patients with acute coronary
 syndromes, up 38 percent to $38 million; and REMICADE(R) (infliximab), for the
 treatment of rheumatoid arthritis and Crohn's disease, with higher sales of
 $27 million.
     U.S. pharmaceutical sales in the 2001 first quarter totaled $1.2 billion,
 down 8 percent versus the 2000 period.  In allergy/respiratory, first quarter
 2001 U.S. sales of the CLARITIN line were $610 million, up 11 percent, with
 growth benefiting from an expanding antihistamine market.  Domestic sales of
 NASONEX increased 2 percent to $63 million in the first quarter 2001.  Sales
 of the VANCERIL(R) (beclomethasone dipropionate) line of orally inhaled
 steroids for asthma and of VANCENASE(R) (beclomethasone dipropionate) Nasal
 Spray, the company's predecessor nasal-inhaled steroid for allergies, were
 down sharply due to manufacturing issues.  In anti-infective/anticancer, U.S.
 combined sales of INTRON A, PEG-INTRON and REBETRON Combination Therapy
 totaled $187 million, down 4 percent, reflecting a slowing in the hepatitis C
 market attributable to the anticipated approval of newer therapies.  Sales of
 dermatologicals, including LOTRISONE(R) (clotrimazole and betamethasone
 dipropionate), a topical antifungal/anti-inflammatory, were down due to
 changes in the timing of trade buying.  Reflecting increased utilization,
 first quarter domestic sales of TEMODAR rose to $26 million and, in
 cardiovasculars, sales of INTEGRILIN increased 30 percent to $34 million.
     International pharmaceutical sales in the 2001 first quarter increased
 4 percent (up 11 percent when foreign exchange is excluded) to $783 million.
 International sales were led by, in allergy/respiratory, NASONEX, with sales
 of $29 million, up 52 percent; and, in anti-infective/anticancer, TEMODAR,
 with sales of $17 million, up 58 percent, and REMICADE.  International
 combined sales of INTRON A (including combination therapy with REBETOL and
 PEG-INTRON) totaled $139 million, down 2 percent versus the comparable 2000
 period.
     First quarter sales of animal health products were down 2 percent (up
 2 percent when foreign exchange is excluded).  Sales of Schering-Plough's foot
 care and sun care product categories were down versus the comparable 2000
 period.  Sales of over-the-counter (OTC) products were up versus the
 comparable 2000 period.
     "Schering-Plough remains a strong and highly effective organization, as
 reflected in the success of our marketing programs and advances in our
 research pipeline," added Kogan.  "We have a proven ability to overcome
 challenges and achieve our objectives, and we look forward to growing our
 business and rewarding the confidence of our shareholders."
 
     DISCLOSURE NOTICE:  In addition to historical information, this press
 release includes certain "forward-looking" statements relating to the
 company's business prospects and the expected impact on the company of the
 manufacturing process and control issues described in more detail in the
 company's Feb. 15, 2001, press release.  The reader of this release should
 understand that the resolution of those manufacturing issues, as well as the
 potential impact of those issues on the company's full-year 2001 sales and
 earnings, are subject to substantial risks and uncertainties, and that those
 issues could cause actual results to differ materially from the company's
 forward-looking statements.  For a full description of those risks and
 uncertainties, the reader of this release is encouraged to read the Disclosure
 Notice in the company's Feb. 15, 2001, press release, which is available on
 the company's Web site at www.schering-plough.com .  In addition to the risks
 and uncertainties relating to the company's manufacturing deficiencies, the
 company's forward-looking statements relating to, among other things, business
 prospects and research pipeline may also be adversely affected by general
 market factors, competitive product development, product availability, federal
 and state regulations and legislation, the regulatory process for new products
 and indications, new manufacturing issues that may arise, trade buying
 patterns, patent positions, litigation and investigations.  For further
 details and a discussion of these and other risks and uncertainties, see the
 company's Securities and Exchange Commission filings, including the company's
 2000 annual report on Form 10-K.
 
     Schering-Plough is a research-based company engaged in the discovery,
 development, manufacturing and marketing of pharmaceutical products worldwide.
 
 
     SCHERING-PLOUGH CORPORATION
 
     Report for the quarter ended March 31 (unaudited):
     (Amounts in millions, except per share figures)
 
                                               First Quarter
 
                                            2001            2000         %
 
     Net Sales                            $2,319          $2,389        (3)
     Cost and Expenses:
     Cost of Sales                           470             457         3
     Selling, General and Administrative     852             841         1
     Research and Development                289             290        --
     Other, Net                              (25)            (25)       --
                                           1,586           1,563         1
     Income Before Income Taxes              733             826       (11)
     Income Taxes                            169             198       (15)
     Net Income                             $564            $628       (10)
 
     Diluted Earnings per Common Share     $0.38           $0.42       (10)
 
     Effective Tax Rate                     23.0%           24.0%
 
     Average Common Shares
      Outstanding - Diluted                1,472           1,479
 
     Actual Number of Common Shares
      Outstanding at March 31              1,463           1,464
 
     Excluding exchange, diluted earnings per share for the first quarter
     decreased 5 percent.
 
 
     SCHERING-PLOUGH CORPORATION
 
     Report for the quarter ended March 31 (unaudited):
 
     Net Sales by Major Product:
     (Dollars in Millions)
                                                     First Quarter
                                          2001            2000             %
 
     ALLERGY & RESPIRATORY                $927            $956            (3)
       Claritin                            718             665             8
       Nasonex                              92              81            13
       Vancenase                             3              56           (94)
       Proventil                            40              44            (9)
       Vanceril                             11              37           (69)
 
     ANTI-INFECTIVE & ANTICANCER           525             492             7
       Eulexin                              29              37           (21)
       Intron A/Rebetron/PEG               326             336            (3)
       Remicade                             27               8           N/M
       Temodar                              43              21           N/M
 
     CARDIOVASCULARS                       164             183           (11)
       Imdur                                21              35           (41)
       Integrilin                           38              28            38
       K-Dur                                74              78            (5)
       Nitro-Dur                            26              35           (26)
 
     DERMATOLOGICALS                       142             172           (17)
       Elocon                               53              44            19
       Lotrisone                            12              50           (75)
 
     OTHER PHARMACEUTICALS                 191             209            (9)
 
     WORLDWIDE PHARMACEUTICALS           1,949           2,012            (3)
 
 
     ANIMAL HEALTH                         153             156            (2)
 
     FOOT CARE                              79              90           (13)
 
     OTC                                    56              43            31
 
     SUN CARE                               82              88            (6)
 
     CONSOLIDATED NET SALES             $2,319          $2,389            (3)
 
     N/M - not a meaningful percentage
 
 
     NOTE:  Additional information about U.S. and international sales for
 specific products is available by calling the company or visiting the
 corporate Web site at www.schering-plough.com.
 
     NOTE TO EDITORS:  Schering-Plough is inviting any interested parties to
 listen to its one-way conference call reviewing first quarter 2001 sales and
 earnings results on April 17, 2001, at 9 a.m. EDT.  To listen live to the
 call, dial 1-800-547-8954 or 1-706-634-5003.  A replay of the call will be
 available starting at 11 a.m., April 17 through 5 p.m. on April 20.  To listen
 to the replay, dial 1-800-642-1687 or 1-706-645-9291 and enter conference ID
 #497048 when prompted.  Additional information about sales for specific
 products is available by calling the media relations and investor relations
 contacts listed below or by going to the company's corporate Web site at
 www.schering-plough.com .  A live audio Webcast of the conference call is
 available by visiting the Web site.  Following the live broadcast, a replay of
 the conference call Webcast will be available for one month.
     Schering-Plough press releases are available on the company's Web site at
 http://www.schering-plough.com and through PR Newswire's fax service.  For a
 menu of Schering-Plough press releases or to retrieve a specific release, call
 1-800-758-5804, extension 777050, or use the Internet via
 http://www.prnewswire.com/comp/777050.html/.
 
 

SOURCE Schering-Plough Corporation
    KENILWORTH, N.J., April 17 /PRNewswire/ --
 Schering-Plough Corporation (NYSE:   SGP) today reported that first quarter 2001
 diluted earnings per share declined 10 percent to 38 cents on net income of
 $564 million versus 42 cents per share on net income of $628 million in 2000.
 First quarter 2001 sales of $2.3 billion were 3 percent lower than last year's
 $2.4 billion.  Excluding exchange, first quarter sales decreased 1 percent.
     The company had projected in a Feb. 15, 2001, press release reporting on
 manufacturing process and control issues and facility inspections by the U.S.
 Food and Drug Administration (FDA) that first quarter sales and earnings would
 be lower than expected.  In the release, the company stated that first quarter
 2001 diluted earnings per share would be lower by as much as 15 percent versus
 the prior year's first quarter.
     "Schering-Plough is moving aggressively and deliberately to resolve the
 manufacturing issues that affected our performance in the first quarter," said
 Richard Jay Kogan, chairman and chief executive officer.  "We have responded
 to the FDA's facility inspection reports, continue to work on completing our
 Good Manufacturing Practices (GMP) initiatives, have undertaken major
 organizational changes in manufacturing and control operations, and are
 developing a comprehensive plan that will incorporate the initiatives already
 begun and establish systems for sustaining GMP compliance throughout the
 organization.  Further, we have retained consultants to assist in designing,
 implementing and auditing these improvements," he said.
     In the 2001 first quarter, worldwide pharmaceutical sales totaled
 $1.9 billion, down 3 percent (down 1 percent when foreign exchange is
 excluded).  Lower sales for the first quarter 2001 were recorded in all of the
 major therapeutic categories except anti-infective/anticancer, where higher
 sales were achieved.  Worldwide sales of the CLARITIN(R) (loratadine)
 nonsedating antihistamine line, the world's No. 1 antihistamine, grew
 8 percent to $718 million.  First quarter 2001 worldwide sales of NASONEX(R)
 (mometasone furoate monohydrate) Nasal Spray, a once-daily nasal-inhaled
 steroid for allergies, increased 13 percent to $92 million.  Combined sales of
 the anti-infective/anticancer agent INTRON(R) A (interferon alfa-2b);
 PEG-INTRON(TM) (peginterferon alfa-2b), a longer-acting form of INTRON A; and
 REBETRON(TM) Combination Therapy containing INTRON A and REBETOL(R)
 (ribavirin, USP) Capsules, totaled $326 million, down 3 percent versus the
 comparable year-ago period.
     Also contributing to first quarter worldwide sales were TEMODAR(R)
 (temozolomide), for treating certain types of brain tumors, with sales of
 $43 million; INTEGRILIN(R) (eptifibatide) Injection, a glycoprotein platelet
 aggregation inhibitor for the treatment of patients with acute coronary
 syndromes, up 38 percent to $38 million; and REMICADE(R) (infliximab), for the
 treatment of rheumatoid arthritis and Crohn's disease, with higher sales of
 $27 million.
     U.S. pharmaceutical sales in the 2001 first quarter totaled $1.2 billion,
 down 8 percent versus the 2000 period.  In allergy/respiratory, first quarter
 2001 U.S. sales of the CLARITIN line were $610 million, up 11 percent, with
 growth benefiting from an expanding antihistamine market.  Domestic sales of
 NASONEX increased 2 percent to $63 million in the first quarter 2001.  Sales
 of the VANCERIL(R) (beclomethasone dipropionate) line of orally inhaled
 steroids for asthma and of VANCENASE(R) (beclomethasone dipropionate) Nasal
 Spray, the company's predecessor nasal-inhaled steroid for allergies, were
 down sharply due to manufacturing issues.  In anti-infective/anticancer, U.S.
 combined sales of INTRON A, PEG-INTRON and REBETRON Combination Therapy
 totaled $187 million, down 4 percent, reflecting a slowing in the hepatitis C
 market attributable to the anticipated approval of newer therapies.  Sales of
 dermatologicals, including LOTRISONE(R) (clotrimazole and betamethasone
 dipropionate), a topical antifungal/anti-inflammatory, were down due to
 changes in the timing of trade buying.  Reflecting increased utilization,
 first quarter domestic sales of TEMODAR rose to $26 million and, in
 cardiovasculars, sales of INTEGRILIN increased 30 percent to $34 million.
     International pharmaceutical sales in the 2001 first quarter increased
 4 percent (up 11 percent when foreign exchange is excluded) to $783 million.
 International sales were led by, in allergy/respiratory, NASONEX, with sales
 of $29 million, up 52 percent; and, in anti-infective/anticancer, TEMODAR,
 with sales of $17 million, up 58 percent, and REMICADE.  International
 combined sales of INTRON A (including combination therapy with REBETOL and
 PEG-INTRON) totaled $139 million, down 2 percent versus the comparable 2000
 period.
     First quarter sales of animal health products were down 2 percent (up
 2 percent when foreign exchange is excluded).  Sales of Schering-Plough's foot
 care and sun care product categories were down versus the comparable 2000
 period.  Sales of over-the-counter (OTC) products were up versus the
 comparable 2000 period.
     "Schering-Plough remains a strong and highly effective organization, as
 reflected in the success of our marketing programs and advances in our
 research pipeline," added Kogan.  "We have a proven ability to overcome
 challenges and achieve our objectives, and we look forward to growing our
 business and rewarding the confidence of our shareholders."
 
     DISCLOSURE NOTICE:  In addition to historical information, this press
 release includes certain "forward-looking" statements relating to the
 company's business prospects and the expected impact on the company of the
 manufacturing process and control issues described in more detail in the
 company's Feb. 15, 2001, press release.  The reader of this release should
 understand that the resolution of those manufacturing issues, as well as the
 potential impact of those issues on the company's full-year 2001 sales and
 earnings, are subject to substantial risks and uncertainties, and that those
 issues could cause actual results to differ materially from the company's
 forward-looking statements.  For a full description of those risks and
 uncertainties, the reader of this release is encouraged to read the Disclosure
 Notice in the company's Feb. 15, 2001, press release, which is available on
 the company's Web site at www.schering-plough.com .  In addition to the risks
 and uncertainties relating to the company's manufacturing deficiencies, the
 company's forward-looking statements relating to, among other things, business
 prospects and research pipeline may also be adversely affected by general
 market factors, competitive product development, product availability, federal
 and state regulations and legislation, the regulatory process for new products
 and indications, new manufacturing issues that may arise, trade buying
 patterns, patent positions, litigation and investigations.  For further
 details and a discussion of these and other risks and uncertainties, see the
 company's Securities and Exchange Commission filings, including the company's
 2000 annual report on Form 10-K.
 
     Schering-Plough is a research-based company engaged in the discovery,
 development, manufacturing and marketing of pharmaceutical products worldwide.
 
 
     SCHERING-PLOUGH CORPORATION
 
     Report for the quarter ended March 31 (unaudited):
     (Amounts in millions, except per share figures)
 
                                               First Quarter
 
                                            2001            2000         %
 
     Net Sales                            $2,319          $2,389        (3)
     Cost and Expenses:
     Cost of Sales                           470             457         3
     Selling, General and Administrative     852             841         1
     Research and Development                289             290        --
     Other, Net                              (25)            (25)       --
                                           1,586           1,563         1
     Income Before Income Taxes              733             826       (11)
     Income Taxes                            169             198       (15)
     Net Income                             $564            $628       (10)
 
     Diluted Earnings per Common Share     $0.38           $0.42       (10)
 
     Effective Tax Rate                     23.0%           24.0%
 
     Average Common Shares
      Outstanding - Diluted                1,472           1,479
 
     Actual Number of Common Shares
      Outstanding at March 31              1,463           1,464
 
     Excluding exchange, diluted earnings per share for the first quarter
     decreased 5 percent.
 
 
     SCHERING-PLOUGH CORPORATION
 
     Report for the quarter ended March 31 (unaudited):
 
     Net Sales by Major Product:
     (Dollars in Millions)
                                                     First Quarter
                                          2001            2000             %
 
     ALLERGY & RESPIRATORY                $927            $956            (3)
       Claritin                            718             665             8
       Nasonex                              92              81            13
       Vancenase                             3              56           (94)
       Proventil                            40              44            (9)
       Vanceril                             11              37           (69)
 
     ANTI-INFECTIVE & ANTICANCER           525             492             7
       Eulexin                              29              37           (21)
       Intron A/Rebetron/PEG               326             336            (3)
       Remicade                             27               8           N/M
       Temodar                              43              21           N/M
 
     CARDIOVASCULARS                       164             183           (11)
       Imdur                                21              35           (41)
       Integrilin                           38              28            38
       K-Dur                                74              78            (5)
       Nitro-Dur                            26              35           (26)
 
     DERMATOLOGICALS                       142             172           (17)
       Elocon                               53              44            19
       Lotrisone                            12              50           (75)
 
     OTHER PHARMACEUTICALS                 191             209            (9)
 
     WORLDWIDE PHARMACEUTICALS           1,949           2,012            (3)
 
 
     ANIMAL HEALTH                         153             156            (2)
 
     FOOT CARE                              79              90           (13)
 
     OTC                                    56              43            31
 
     SUN CARE                               82              88            (6)
 
     CONSOLIDATED NET SALES             $2,319          $2,389            (3)
 
     N/M - not a meaningful percentage
 
 
     NOTE:  Additional information about U.S. and international sales for
 specific products is available by calling the company or visiting the
 corporate Web site at www.schering-plough.com.
 
     NOTE TO EDITORS:  Schering-Plough is inviting any interested parties to
 listen to its one-way conference call reviewing first quarter 2001 sales and
 earnings results on April 17, 2001, at 9 a.m. EDT.  To listen live to the
 call, dial 1-800-547-8954 or 1-706-634-5003.  A replay of the call will be
 available starting at 11 a.m., April 17 through 5 p.m. on April 20.  To listen
 to the replay, dial 1-800-642-1687 or 1-706-645-9291 and enter conference ID
 #497048 when prompted.  Additional information about sales for specific
 products is available by calling the media relations and investor relations
 contacts listed below or by going to the company's corporate Web site at
 www.schering-plough.com .  A live audio Webcast of the conference call is
 available by visiting the Web site.  Following the live broadcast, a replay of
 the conference call Webcast will be available for one month.
     Schering-Plough press releases are available on the company's Web site at
 http://www.schering-plough.com and through PR Newswire's fax service.  For a
 menu of Schering-Plough press releases or to retrieve a specific release, call
 1-800-758-5804, extension 777050, or use the Internet via
 http://www.prnewswire.com/comp/777050.html/.
 
 SOURCE  Schering-Plough Corporation

RELATED LINKS

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