Centeon Impact On R-PR's 1st Qtr

As expected, Rhone-Poulenc Rorer's performance in the first three monthsof 1997 was negatively impacted by the product recall at its 50:50 joint-venture company Centeon (Marketletters passim).

Net income was $57 million, down 23%, and earnings per share fell 25.4% to 55 cents. Excluding the Centeon impact, EPS would have risen 33%, said the company. Sales for the quarter were just over $1 billion, down from $1.27 billion a year earlier. R-PR said that turnover was affected significantly by product divestitures and currency fluctuations. Several non-strategic products were divested, which reduced sales by 9% in the first quarter.

Michel de Rosen, chairman and chief executive, commented: "the delay in resuming distribution of Centeon products has been disappointing for R-PR and its shareholders, but Centeon is implementing the necessary enhancements at its Kankakee, Illinois facility, and will continue to work closely with the US Food and Drug Administration in an effort to resume distribution of its products manufactured at this facility into the marketplace." Sales growth is expected to be in the region of 5%-6% for the full year.