SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999
Commission File Number 1-1136
BRISTOL-MYERS SQUIBB COMPANY
(Exact name of registrant as specified in its charter)
Delaware 22-079-0350
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
345 Park Avenue, New York, N.Y. 10154
(Address of principal executive offices)
Telephone: (212) 546-4000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [ X ] No [ ]
At June 30, 1999, there were 1,986,075,102 shares outstanding of the
Registrant's $.10 par value Common Stock.
<PAGE>
BRISTOL-MYERS SQUIBB COMPANY
INDEX TO FORM 10-Q
June 30, 1999
Page No.
Part I - Financial Information:
Financial Statements (Unaudited):
Consolidated Balance Sheet - June 30, 1999 and December 31, 2 - 3
1998
Consolidated Statement of Earnings and Comprehensive Income
for the three and six months ended June 30, 1999 and 1998 4
Consolidated Statement of Cash Flows for the six months ended
June 30, 1999 and 1998 5
Management's Discussion and Analysis of Financial Condition
and Results of Operations 6 - 12
Part II - Other Information 13
Signatures 14
<PAGE>
PART I FINANCIAL INFORMATION
- -----------------------------
Item 1. Financial Statements
- -----------------------------
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED BALANCE SHEET - ASSETS
(Unaudited, in millions except share amounts)
June 30, December 31,
1999 1998
Current Assets:
Cash and cash equivalents $2,081 $2,244
Time deposits and marketable securities 267 285
Receivables, net of allowances 3,218 3,190
Finished goods 1,402 1,209
Work in process 336 236
Raw and packaging materials 306 428
Inventories 2,044 1,873
Prepaid expenses 1,048 1,190
Total Current Assets 8,658 8,782
Property, Plant and Equipment 7,613 7,508
Less: Accumulated depreciation 3,158 3,079
Net Property, Plant and Equipment 4,455 4,429
Insurance Recoverable 504 523
Excess of cost over net tangible assets received
in business acquisitions 1,590 1,587
Other Assets 1,007 951
Total Assets $16,214 $16,272
<PAGE>
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED BALANCE SHEET -
LIABILITIES AND STOCKHOLDERS' EQUITY
(Unaudited, in millions except share amounts)
June 30, December 31,
1999 1998
Current Liabilities:
Short-term borrowings $546 $482
Accounts payable 1,373 1,380
Accrued expenses 2,160 2,302
Product liability 566 877
U.S. and foreign income taxes payable 722 750
Total Current Liabilities 5,367 5,791
Other Liabilities 1,460 1,541
Long-Term Debt 1,327 1,364
Total Liabilities 8,154 8,696
Stockholders' Equity:
Preferred stock, $2 convertible series:
Authorized 10 million shares; issued and
outstanding 11,284 in 1999 and 11,684 in - -
1998, liquidation value of $50 per share
Common stock, par value of $.10 per share:
Authorized 4.5 billion shares; issued
2,190,336,925 in 1999 and 2,188,316,808 in 219 219
1998
Capital in excess of par value of stock 1,291 1,075
Cumulative translation adjustment (783) (622)
Retained earnings 13,705 12,540
14,432 13,212
Less cost of treasury stock 204,261,823 common
shares in 1999 and 199,550,532 in 1998 6,372 5,636
Total Stockholders' Equity 8,060 7,576
Total Liabilities and Stockholders' Equity $16,214 $16,272
<PAGE>
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS
AND COMPREHENSIVE INCOME
(Unaudited, in millions of dollars except per share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
EARNINGS
Net Sales $4,920 $4,430 $9,774 $8,876
Expenses:
Cost of products sold 1,361 1,206 2,666 2,358
Marketing,selling, 1,122 1,034 2,243 2,082
administrative and other
Advertising and product 666 642 1,195 1,213
promotion
Research and development 453 384 876 767
Provision for restructuring - 76 - 201
Gain on sale of businesses - (76) - (201)
3,602 3,266 6,980 6,420
Earnings Before Income Taxes 1,318 1,164 2,794 2,456
Provision for income taxes 366 329 775 694
Net Earnings $952 $835 $2,019 $1,762
Earnings Per Common Share
Basic $.48 $.42 $1.02 $.89
Diluted $.47 $.41 $1.00 $.87
Average Common Shares
Outstanding (in millions)
Basic 1,984 1,987 1,985 1,987
Diluted 2,027 2,031 2,027 2,033
Dividends Per Common Share $.215 $.195 $.43 $.39
COMPREHENSIVE INCOME
Net Earnings $952 $835 $2,019 $1,762
Other Comprehensive Income:
Foreign currency translation (65) 17 (169) (87)
Tax effect 3 (11) 8 5
Total Other Comprehensive Income (62) 6 (161) (82)
Comprehensive Income $890 $841 $1,858 $1,680
<PAGE>
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions of dollars)
Six Months Ended
June 30,
1999 1998
Cash Flows From Operating Activities:
Net earnings $2,019 $1,762
Depreciation and amortization 331 301
Provision for restructuring - 201
Gain on sale of businesses - (201)
Other operating items (65) 22
Receivables (115) (215)
Inventories (229) (84)
Accounts payable 16 79
Accrued expenses (160) (271)
Product liability (432) (381)
Insurance recoverable 19 25
Income taxes 348 187
Other assets and liabilities (146) (67)
Net Cash Provided by Operating Activities 1,586 1,358
Cash Flows From Investing Activities:
Proceeds from sales of time deposits and 22 167
marketable securities
Purchases of time deposits and marketable (3) (137)
securities
Additions to fixed assets (299) (365)
Proceeds from sale of business - 406
Acquisition of businesses - (67)
Other, net (59) 16
Net Cash (Used in) / Provided by Investing (339) 20
Activities
Cash Flows From Financing Activities:
Short-term borrowings 87 (89)
Long-term debt (34) 70
Issuances of common stock under stock plans (2) 98
Purchases of treasury stock (633) (1,126)
Dividends paid (854) (776)
Net Cash Used in Financing Activities (1,436) (1,823)
Effect of Exchange Rates on Cash 26 (6)
Decrease in Cash and Cash Equivalents (163) (451)
Cash and Cash Equivalents at Beginning of 2,244 1,456
Period
Cash and Cash Equivalents at End of Period $2,081 $1,005
<PAGE>
BRISTOL-MYERS SQUIBB COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(UNAUDITED)
Basis of Presentation
- ---------------------
In the opinion of management, the accompanying unaudited
consolidated financial statements include all adjustments
(consisting only of normal adjustments) necessary for a fair
presentation of the financial position of Bristol-Myers Squibb
Company (the "Company") at June 30, 1999 and December 31, 1998,
the results of operations for the three and six months ended
June 30, 1999 and 1998, and cash flows for the six months ended
June 30, 1999 and 1998. These consolidated financial statements
should be read in conjunction with the consolidated financial
statements and the related notes included in the Company's 1998
Annual Report on Form 10-K.
Second Quarter Results of Operations
- ------------------------------------
Worldwide sales for the second quarter of 1999 increased 11%
over the prior year to $4,920 million. The consolidated sales
growth resulted from a 10% increase due to volume, a 2% increase
due to changes in selling prices and a 1% decrease due to
foreign exchange rate fluctuations. U.S. sales increased 19%
and international sales remained at prior year levels (an
increase of 3% excluding the effect of foreign exchange).
Sales in the medicines products segment, which is the largest
segment at 70% of total Company sales, increased 15% over the
second quarter of 1998 to $3,435 million. Worldwide
pharmaceutical sales increased 17% with U.S. pharmaceutical
sales up 29% over the prior year. Sales growth in the second
quarter resulted from a 14% increase in volume, a 2% increase in
selling prices and a 1% decrease due to foreign exchange rate
fluctuations.
Sales of cardiovascular drugs, the largest product group in the
segment, increased 20% to $881 million (22% excluding foreign
exchange). Sales of PRAVACHOL*, the Company's largest selling
product, increased 5% to $380 million. Sales of the anti-
hypertensive MONOPRIL*, a second generation angiotensin
converting enzyme (ACE) inhibitor, increased 9% to $116 million.
PLAVIX, a platelet aggregation inhibitor for the reduction of
stroke, heart attack and vascular death in atherosclerotic
patients with recent stroke, recent heart attack or peripheral
arterial disease, had sales of $128 million for the quarter.
AVAPRO, an angiotensin II receptor blocker for the treatment of
hypertension, had sales of $64 million. AVAPRO and PLAVIX are
cardiovascular products that were launched from the Bristol-
Myers Squibb and Sanofi S.A. joint venture. In May 1999, the
Company and Sanofi S.A. announced the availability in the U.S.
of the anti-hypertensive AVALIDE, an angiotensin II receptor
blocker combined with a thiazide diuretic. Sales growth for
these cardiovascular products was partially offset by an 18%
decline in CAPOTEN* sales due to the loss of patent exclusivity
in international markets.
* Indicates brand names of products which are registered
trademarks owned by the Company.
<PAGE>
Sales of anti-cancer drugs increased 19% to $852 million. Sales
of TAXOL* (paclitaxel), the Company's leading anti-cancer
agent, increased 19% to $362 million as the product continues to
benefit from increased use in ovarian, breast and non-small cell
lung cancer. In April 1999, the Company applied for regulatory
approval to extend the use of TAXOL* to treat breast cancer
patients following surgery. In June 1999, the Company submitted
a regulatory application to the Food and Drug Administration
(FDA) to gain marketing approval for TAXOL* injection in
combination with Genentech, Inc's Herceptin r as first-line
therapy for women with metastatic breast cancer. Also in June,
the Company filed for European marketing authorization to the
Dutch Health Authorities for the use of TAXOL* for the adjuvant
treatment of node-positive breast cancer. Sales of PARAPLATIN*,
an anti-cancer agent used in combination with other chemotherapy
agents, increased 11% to $138 million. Sales from Oncology
Therapeutics Network (OTN), a specialty distributor of anti-
cancer medicines and related products, increased 41% to $219
million.
Anti-infective drug sales of $584 million increased 2% over the
prior year. ZERIT* and VIDEX*, the Company's two anti-
retroviral agents, increased 19% to $151 million and 41% to $55
million, respectively. ZERIT* is one of the most commonly
prescribed thymidine nucleoside reverse transcriptase inhibitor
in HIV therapy in most major markets in the world. During the
quarter, the European Union gave a mutual recognition agreement
on the once-daily dosing of VIDEX* for the treatment of HIV.
International sales of MAXIPIME*, a fourth generation injectable
cephalosporin, increased 19% to $32 million in the quarter.
Effective January 1, 1999, Dura Pharmaceuticals, Inc. was
appointed the exclusive distributor for MAXIPIME* in the United
States.
The Company is committing $100 million over the next five years
in connection with the Secure the Future program, whose goals
are to speed research, train doctors and enhance community
outreach to fight HIV/AIDS in Southern Africa.
Central nervous system drug sales of $306 million increased 26%
with sales of BUSPAR*, an anti-anxiety agent, and SERZONE*, an
anti-depressant, increasing 57% to $132 million, and 18% to $84
million, respectively.
GLUCOPHAGE, the leading branded oral medication for the
treatment of non-insulin dependent (type 2) diabetes, continued
its strong growth rate with sales increasing 47% to $350
million. In May 1999, the FDA approved AVANDIA in combination
with GLUCOPHAGE for the treatment of type 2 diabetes. AVANDIA
is a product of SmithKline Beecham, and is being co-promoted by
Bristol-Myers Squibb Company in the United States.
Analgesic sales decreased 2% to $168 million. EXCEDRIN* sales
increased 6% to $53 million and sales of EFFERALGAN*, an
effervescent analgesic sold primarily in France, decreased 6% to
$34 million.
Earnings before taxes for the medicines products segment
increased 19% to $893 million in 1999. As a percentage of
sales, earnings before taxes for this segment improved to 26.0%
in 1999 from 25.2% in 1998. Advertising and promotion, and
sales force expenses improved, as a percentage of sales,
partially offset by increases in cost of goods sold, as a
percentage of sales.
<PAGE>
Sales in the beauty care products segment increased 4% (5%
excluding the effect of foreign exchange) to $626 million.
Sales growth in the second quarter resulted from a 3% increase
in volume, a 2% increase in selling prices and a 1% decrease due
to foreign exchange rate fluctuations. Clairol continues to be
the number one hair products company in the U.S. The
introduction of a demand management manufacturing system slowed
shipments during the quarter. HERBAL ESSENCES*, the number two
brand in the U.S. shampoo/conditioner category and number three
in the body wash category, continued its strong growth,
increasing 16% to $159 million. HERBAL ESSENCES FACIAL CARE*, a
line of skin care products, was launched in March 1999, and
contributed $6 million in second quarter sales. AUSSIE* products
contributed $33 million to second quarter sales, an increase of
22%. AUSSIE LAND*, hair products for children, was launched in
March 1999 and contributed $7 million to second quarter sales.
Sales of DAILY DEFENSE* increased 100% to $30 million for the
second quarter, following its launch into international markets.
Earnings before taxes for the beauty care segment decreased to
$44 million in 1999 from $89 million in 1998, primarily due to
the introduction of a demand management manufacturing system.
Sales in the nutritional products segment increased 4% to $438
million (6% excluding the effect of foreign exchange). U.S.
sales increased 7% and international sales decreased 1%
primarily due to market conditions in Asia. Sales growth in the
second quarter resulted from a 4% increase in volume, a 2%
increase in selling prices and a 2% decrease due to foreign
exchange rate fluctuations. The Company's Mead Johnson
subsidiary continues to build on its U.S. and worldwide
leadership position in the infant formula market. ENFAMIL*, the
Company's largest-selling infant formula, recorded sales of $163
million, a 5% increase over the prior year. BOOST*, an adult
nutritional supplement, also contributed to sales growth,
increasing 45% to $29 million. In March 1999, Mead Johnson
Nutritionals introduced VIACTIV* Soft Calcium Chews to address
the need for a convenient, great-tasting calcium supplement for
women. Sales of VIACTIV* reached $6 million in the second
quarter. Earnings before taxes for the nutritional segment
decreased to $71 million in 1999 from $74 million in 1998, and
as a percentage of sales, decreased to 16.2% in 1999 from 17.5%
in 1998 primarily due to market conditions in Asia.
Medical device segment sales increased 4% to $421 million,
excluding sales from a 1998 distribution agreement with the
acquirer of Zimmer's divested arthroscopy and powered surgical
instrument business. On this basis, medical device sales
increased 5% due to volume and decreased 1% due to changes in
selling prices. Fluctuations in foreign exchange had no effect
on medical devices sales. Zimmer sales on this same basis
increased 7% to $240 million (6% excluding foreign exchange).
Knee joint replacement sales increased 12% to $95 million and
hip replacement sales increased 9% to $72 million. ConvaTec
sales increased 1% to $180 million (2% excluding foreign
exchange). Sales of ostomy products increased 2% to $116
million partially offset by a decrease in wound care products of
3% to $56 million. Earnings before taxes for the medical device
segment increased 12% to $91 million in 1999 from $81 million in
1998 and, as a percentage of sales, increased to 21.6% in 1999
from 19.4% in 1998, primarily due to improved manufacturing
efficiencies.
<PAGE>
Operating Expenses
- ------------------
Total expenses for the quarter ended June 30, 1999, as a
percentage of sales, decreased to 73.2% from 73.7% in 1998. Cost
of products sold, as a percentage of sales, increased to 27.7% from
27.2% in 1998 due to revenue growth of OTN which carries
significantly lower margins. Expenditures for advertising and
promotion in support of new and existing products increased 4%
to $666 million from $642 million. Marketing, selling,
administrative and other expenses increased 9% to $1,122
million. Research and development expenditures increased 18% to
$453 million from $384 million in 1998. Pharmaceutical research
and development spending increased 19% over the prior year, and
as a percentage of pharmaceutical sales, was 12.7% in the second
quarter of 1999 and 12.6% in the second quarter of 1998. In
research and development highlights this quarter, data on the
Company's new novel cardiovascular agent in Phase II trials,
VANLEV* (omapatrilat), were presented at the American Society
of Hypertension. The Phase II results showed that use of
VANLEV* was effective in reducing both systolic (top number) and
diastolic (bottom number) blood pressure. The Company plans to
file for regulatory approval for VANLEV* with the FDA by the end
of the year with worldwide regulatory filings to follow. The
Company is also awaiting marketing approval from the FDA for
ORZEL* (UFT), an oral therapy for colorectal cancer, and
TEQUIN* (gatifloxacin), a broad-spectrum quinolone antibiotic
for the treatment of multiple common infections, including those
of the respiratory tract.
Earnings
- --------
Earnings before income taxes for the second quarter increased
13% to $1,318 million from $1,164 million in 1998. The effective
tax rate on earnings before income taxes decreased to 27.8% in
1999 from 28.3% in 1998. The decrease in the effective tax rate
is due to increased earnings from lower tax rate jurisdictions.
Net earnings increased 14% to $952 million from $835 million
in 1998. Basic earnings per share increased 14% to $.48 from $.42
in 1998 and diluted earnings per share increased 15% to $.47 from
$.41 in 1998.
Six Months Results of Operations
- --------------------------------
Worldwide sales for the first six months of 1999 increased 10%
(11% excluding the effect of foreign exchange) over the prior
year to $9,774 million. The consolidated sales growth resulted
from a 9% increase due to volume, a 2% increase due to changes
in selling prices and a 1% decrease due to the effect of foreign
exchange. U.S. sales increased 16% and international sales
increased 2% (3% excluding the effect of foreign exchange).
Sales in the medicines products segment increased 14% over the
prior year to $6,865 million. Worldwide pharmaceutical sales
increased 16% with U.S. pharmaceutical sales up 25% over the
prior year. Sales growth for the six months resulted from a 12%
increase in volume, a 2% increase in selling prices and no
effect from foreign exchange rate fluctuations.
<PAGE>
Cardiovascular drug sales of $1,802 million increased 17% from
the prior year. PRAVACHOL* increased 7% to $866 million and
MONOPRIL* increased 10% to $222 million. PLAVIX had sales of
$216 million for the six months and AVAPRO had sales of $114
million. Sales growth for these products was partially offset
by a 22% decline in CAPOTEN* sales, due to the loss of patent
exclusivity in international markets. Sales of anti-cancer
drugs increased 24% to $1,687 million due to strong sales of
TAXOL* and PARAPLATIN* which increased 24% to $692 million and
13% to $287 million, respectively. Sales from OTN increased 42%
to $420 million. Anti-infective drug sales increased 5% to
$1,217 million as ZERIT* and VIDEX* recorded gains of 18% to
$302 million and 34% to $99 million, respectively.
International sales of MAXIPIME* increased 24% to $62 million
for the six months and sales of CEFZIL* increased 12% to $220
million. Sales of central nervous system drugs increased 10% to
$574 million as BUSPAR* and SERZONE* increased 15% to $264
million and 9% to $147 million, respectively. GLUCOPHAGE
continued its strong growth and increased 51% to $631 million.
Analgesic sales of $360 million increased 3% primarily due to
increases in EFFERALGAN* of 11% to $84 million and DAFALGAN* of
16% to $36 million partially offset by decreases in EXCEDRIN* of
3% to $112 million, coming off significant increases in 1998 due
to the launch of EXCEDRIN MIGRAINE*.
Earnings before taxes for the medicines products segment
increased 15% to $1,894 million in 1999. As a percentage of
sales, earnings before taxes for this segment improved to 27.6%
in 1999 from 27.2% in 1998.
Sales in the beauty care products segment increased 5% (6%
excluding the effect of foreign exchange) to $1,198 million.
Sales growth resulted from a 4% increase in volume, a 2%
increase in selling prices and a 1% decrease due to foreign
exchange rate fluctuations. HERBAL ESSENCES* continued its
strong growth, increasing 21% to $323 million. HERBAL ESSENCES
FACIAL CARE* contributed $12 million in six month sales. AUSSIE*
products contributed $61 million, an increase of 22%, and sales
of DAILY DEFENSE* increased 100% to $64 million for the six
months. Earnings before taxes for the beauty care segment
decreased to $109 million in 1999 from $161 million in 1998,
primarily due to the introduction of a demand management
manufacturing system.
Sales in the nutritional products segment increased 2% to $888
million (3% excluding the effect of foreign exchange). Sales
growth for the six months resulted from a 2% increase in volume,
a 1% increase in selling prices and a 1% decrease due to foreign
exchange rate fluctuations. Total infant formula sales increased
2% to $605 million. ENFAMIL* recorded sales of $350 million, a
6% increase over the prior year. BOOST*, an adult nutritional
supplement, increased 30% to $52 million. Six month sales of
VIACTIV* were $9 million. Earnings before taxes for the
nutritional segment were $172 million in 1999 compared to $169
million in 1998 and, as a percentage of sales, were 19.4% in
both 1999 and 1998.
Medical device segment sales increased 4% to $823 million,
excluding sales from a 1998 distribution agreement with the
acquirer of Zimmer's divested arthroscopy and powered surgical
instrument business. On this basis, medical device sales
increased 3% due to volume and 1% due to foreign exchange with
no effect from price changes. Zimmer sales on the same basis
increased 7% to $478 million. Knee joint replacement sales
increased 10% to $189 million and hip replacement sales
increased 8% to $143 million. ConvaTec remained at prior year
levels of $344 million as sales of ostomy products increased 2%
to $224 million and wound care products decreased 2% to $111
million. Earnings before taxes for the medical devices segment
increased 10% to $163 million in 1999 from $148 million in 1998
and, as a percentage of sales, improved to 19.8% in 1999 from
17.9% in 1998, resulting from a decrease, as a percentage of
sales, in cost of products sold.
<PAGE>
Operating Expenses
- ------------------
Total expenses for the six months ended June 30, 1999, as a
percentage of sales, decreased to 71.4% from 72.3% in 1998. Cost
of products sold increased to 27.3% of sales from 26.6% in 1998
primarily due to revenue growth of OTN. Expenditures for
advertising and promotion in support of new and existing
products decreased 1% to $1,195 million from $1,213 million in
1998. Marketing, selling, administrative and other expenses
increased 8% to $2,243 million from $2,082 million in 1998.
Research and development expenditures increased 14% to $876
million from $767 million in 1998. Pharmaceutical research and
development spending increased 15% over the prior year, and as a
percentage of pharmaceutical sales, was 12.4% compared to 12.6%
in the same period of 1998.
Earnings
- --------
Earnings before income taxes for the six months increased 14% to
$2,794 million from $2,456 million in 1998. The effective tax
rate on earnings before income taxes decreased to 27.8% in 1999
from 28.3% in 1998. Net earnings increased 15% to $2,019 million
from $1,762 million in 1998. Basic earnings per share increased
15% to $1.02 from $.89 in 1998 and diluted earnings per share
increased 15% to $1.00 from $.87 in 1998.
Financial Position
- ------------------
The balance sheet at June 30, 1999 and the statement of cash
flows for the six months then ended reflect the Company's strong
financial position. The Company continues to maintain a high
level of working capital, increasing to $3.3 billion at June 30,
1999, from $3.0 billion at December 31, 1998.
Long-Term Debt decreased slightly to $1,327 million from $1,364
million at December 1998.
Internally generated funds continue to be the Company's primary
source for financing expenditures for new plant and equipment.
Net cash provided by Operating Activities increased 17% to
$1,586 million in 1999. Additions to fixed assets for the six
months ended June 30, 1999 were $299 million compared to $365
million during the same period of 1998.
During the six months ended June 30, 1999, the Company purchased
10.2 million shares of its common stock at a total cost of $633
million.
During the first quarter of 1998, the Company divested its BAN
brand of anti-perspirants and deodorants for $165 million,
resulting in a gain of $125 million before taxes. During the
second quarter, the Company divested A/S GEA, a Denmark-based
generic drug business, and Hexachimie, a fine chemical
manufacturer based in France, resulting in a combined gain of
$76 million before taxes. The Company recorded provisions for
restructuring of $125 million before taxes in the first quarter
and $76 million before taxes in the second quarter. The
restructuring charges primarily related to the consolidation and
closure of plants and facilities as part of the Company's on-
going productivity programs.
<PAGE>
Business Segments
- -----------------
Three Months Ended June 30,
Net Sales Earnings Before
Taxes
(in millions) 1999 1998 1999 1998
Medicines Products $3,435 $2,987 $893 $753
Beauty Care Products 626 603 44 89
Nutritional Products 438 423 71 74
Medical Devices 421 417 91 81
Other - - 219 167
Total Company $4,920 $4,430 $1,318 $1,164
Six Months Ended June 30,
Net Sales Earnings Before
Taxes
(in millions) 1999 1998 1999 1998
Medicines Products $6,865 $6,044 $1,894 $1,646
Beauty Care Products 1,198 1,137 109 161
Nutritional Products 888 870 172 169
Medical Devices 823 825 163 148
Other - - 456 332
Total Company $9,774 $8,876 $2,794 $2,456
Included in earnings before taxes of each segment is a cost of
capital charge. The offset to the cost of capital charge is
included in Other. In addition, Other principally consists of
interest income, interest expense, certain administrative
expenses and allocations to the industry segments for certain
corporate programs. In the second quarter of 1998, Other also
includes the gain on sale of a business of $76 million and a
provision for restructuring of $76 million. For the first six
months of 1998, Other also includes the gain on sale of
businesses of $201 million and a provision for restructuring of
$201 million. In addition, the segment information reflects
certain internal organizational changes made in 1999. Prior year
data have been restated accordingly.
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
a) Exhibits (listed by number corresponding to the Exhibit Table
of Item 601 in Regulation S-K).
Exhibit Number and Description Page
------------------------------- -----
27. Bristol-Myers Squibb Company Financial Data ScheduleE-27-1
b) Reports on Form 8-K.
The Registrant did not file any reports on Form 8-K during the
quarter ended June 30, 1999.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
BRISTOL-MYERS SQUIBB COMPANY
(Registrant)
Date: August 13, 1999 /s/ Harrison M. Bains, Jr.
Harrison M. Bains, Jr.
Vice President and Treasurer
Date: August 13, 1999 /s/ Frederick S. Schiff
Frederick S. Schiff
Vice President Financial Operations
and Controller
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27 for Bristol-Myers Squibb Company for the period ended 6/30/99
<MULTIPLIER> 1000000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999 <F1>
<PERIOD-END> JUN-30-1999
<CASH> 2081
<SECURITIES> 267
<RECEIVABLES> 3218 <F2>
<ALLOWANCES> 0
<INVENTORY> 2044
<CURRENT-ASSETS> 8658
<PP&E> 7613
<DEPRECIATION> 3158
<TOTAL-ASSETS> 16214
<CURRENT-LIABILITIES> 5367
<BONDS> 1327
0
0
<COMMON> 219
<OTHER-SE> 7841
<TOTAL-LIABILITY-AND-EQUITY> 16214
<SALES> 9774
<TOTAL-REVENUES> 9774
<CGS> 2666
<TOTAL-COSTS> 2666
<OTHER-EXPENSES> 2071
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 64
<INCOME-PRETAX> 2794
<INCOME-TAX> 775
<INCOME-CONTINUING> 2019
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2019
<EPS-BASIC> 1.02
<EPS-DILUTED> 1.00
<FN>
<F1>
Items reported as "zero" are not applicable or are immaterial to the
consolidated financial position of the Company.
<F2>
Receivables are reported net of allowances for doubtful accounts.
</TABLE>
