Rhone-Poulenc 1st Qtr 1996 Income Declines 13.5%

As previously forecast by the company, Rhone-Poulenc saw first-quarter 1996 net income fall 13.5% to 633 million French francs ($122.8 million), largely as a result of interest expenses and amortization of goodwill following the acquisition of Fisons last October. Synergies from this deal are not expected to be realized until the second half of the year.

Group sales were also down, by 1.8%, to 21.13 billion francs ($4.1 billion), pulled back by fibers, polymers and chemicals, which suffered from adverse economic conditions, particularly in Brazil in the area of polyester.

However, the group's health care businesses brought in turnover of 9.15 billion francs, up 3.7% on the like, year-earlier period, with volume sales 5.4% higher. Currency factors had a negative influence of 1.5% and price decline of 0.2%, R-P noted. Operating income from health care was 902 million francs, down 4.9%.