1996 A Demanding Year For Novartis

Novartis, which was finally born on December 20, 1996, out of the mergerof the two Swiss firms Ciba-Geigy and Sandoz, had a busy and demanding year in 1996, according to its chairman, Alex Krauer. The firm achieved net income for the year of $4.17 billion Swiss francs ($2.86 billion) before exceptional items, which was in keeping with analysts' expectations. There was an 11.5% margin on sales of 36.23 billion francs, which were announced earlier this year (Marketletter February 3).

Exceptional items were divestments made during the year and amounted to 1.87 billion francs after tax. Novartis took one-time exceptional asset writedowns and personal severance and retirement costs of 4.68 billion francs before tax. This also includes additional environmental provisions and other items.

Of this total, restructuring and the costs of separation of Ciba Specialty Chemicals amounted to 4.28 billion francs in 1996. This includes expenses of 2.10 billion francs relating to personnel.