Profits Fall At Recordati In First-Half

For the first six months of 1996, Italian company Recordati saw its operating income decline 13.4% to 12.7 billion lire ($8.3 million). The firm said that the decline was due to higher costs of goods attributable to increased cost of production materials and different sales mix, incremental expenses associated with the international operations of both business segments, the launch of new products, and higher R&D expenditures.

The firm added that its operating income continues to be affected by the low prices of reimbursable pharmaceutical products in Italy, which are more than 30% lower than the average European prices.

Sales in the first half were 16% higher than a year ago at 187.5 billion lire. Both pharmaceuticals and pharmaceutical chemicals contributed to the increase, the firm said. Net income was 12.8 billion lire, up 36.2%. The rise was attributed to a non-recurring income and lower tax rate.