1994 Transitional For R-PR With Better Second Half

Rhone-Poulenc Rorer's financial results for 1994 were lackluster but there was an improvement in the second half of the year. Group sales for the year were $4.17 billion, ahead 4%. Net income slumped 18.8% to $332 million and earnings per share, on an adjusted basis, were up 3% to $3.01. Not adjusted, EPS was $2.45, down 17.2%.

1994 was a transitional year for the group, said Patrick Langlois, corporate senior vice president and chief financial officer, at a results press conference held in Paris, France. The first six months of the year were difficult because of the effects of wholesaler stocking, but in the second half of the year there was a turnaround with a return to growth in sales, driven by demand which was more in line with prescription drug turnover, and strong growth in earnings.

The fourth quarter of 1994 was particularly strong, with sales growing 13.6% to $1.29 billion, net income advancing 31.4% and EPS of $1.22, up 34.1%. The fourth quarter included a net gain of $27 million from the divestment of the US over-the-counter business to Ciba. However, it was noted that this was offset by investment in R&D.