SANOFI 1991 NET INCOME UP 12.1%

For France's Elf Sanofi, earnings progressed satisfactorily in 1991 despite the adverse operating environment (the world economic situation including the Gulf War and government measures regarding health care expenditures). Consolidated net income for the year rose 12.1% to 956 million francs ($169 million), on net sales of 19.6 billion francs ($3.46 billion), a rise of 5.7%.

These good results were achieved, the company claims, while at the same time investing in the future of the group, which included: signing and implementing the alliance with Sterling Winthrop in the areas of prescription pharmaceuticals and consumer health products; acquisition of a 40% stake in the Hungarian company Chinoin, providing a foothold for development in central and eastern Europe; increased research and development expenditure. R&D spending in 1991 reached 1.86 billion francs, an increase of 12.9% over the previous year.

The company also notes that its operating margin overall improved 6% to 2.06 billion francs, with increased margins in all business segments. It adds that restructuring costs required for the Sterling alliance, amounting to 230 million francs net of income tax were fully provided for in 1991 and offset by a capital gain from the disposal of Elf Sanofi's investment in Laboratoire Searle, its joint venture with the US concern.