SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Se ction 13 or 15(d) of the
Securities Exc hange Act of 1934
August 25, 199 4
Mallinckrodt G roup Inc.
(Exact name of registrant as specified in its charter)
New York 1-483
36-1263901
(State or other jurisdiction (Commission (IRS
Employer
of incorporation) File Number)
Identification No.)
7733 Forsyth Boulevard, St. Louis, MO 63105-1820
(Address of principal executive offices) (Zip
Code)
Registrant's telephone number, (314)
854-5200
including area code
MALLINCKRODT GROUP ANNOUNCES PLANS TO REPURCHASE STOCK
Item 5
ST. LOUIS, August 25, 1994 -- Mallinckrodt Group Inc.
(NYSE:MKG) today announced it will purchase up to two million
shares of the company's common stock over an unspecified period
of time as market conditions warrant. The shares will be
bought on the open market.
C. Ray Holman, president and chief executive officer, said
"Our Board of Directors and management have tremendous
confidence in the future of this company. A share repurchase
program reinforces that confidence and confirms our belief that
our stock is a good investment opportunity."
The current share repurchase plan falls under an October
1988 authorization for the purchase of up to 42 million shares
of the company's common stock. Since that time, about 29
million shares have been purchased by the company, leaving
approximately 13 million shares in the 1988 purchase
authorization.
Commenting on the fiscal year ended June 30, Holman said,
"We were pleased with the 24 percent increase in earnings over
the previous year to $287 million, prior to the previously
announced restructuring charge, and net sales of $1.94 billion,
which was an 8 percent increase over 1993."
"We also were encouraged by a number of positive events
that occurred during fiscal 1994. The company made two
important acquisitions -- DAR, a leading Italian manufacturer
of anesthesiology and respiratory products, and Catalyst
Resources, Inc., purchased from Phillips Petroleum. Catalyst
Resources is expected to double Mallinckrodt Chemical's
catalyst business, and DAR gives Mallinckrodt Medical an
expanded international presence and a platform for further
growth in an area where many of our products already are market
leaders," Holman said.
"The U.S. Food and Drug Administration's mid-June approval
of OctreoScan, a radiopharmaceutical for diagnosing certain
cancer tumors, and early August authorization of Albunex, the
first contrast media for use with ultrasound, were also good
news in terms of outlook for the future. Both products have
the potential to generate significant revenues," he added. "In
addition, our recently signed agreement with Boehringer
Ingelheim Animal Health, Inc., under which Mallinckrodt
Veterinary will begin private-label marketing and distribution
of certain Boehringer Ingelheim cattle respiratory vaccines in
the United States immediately, marks the second notable step in
our strategy to develop global leadership in biologicals, the
fastest growing segment of the animal health industry. During
fiscal 1994, we broke ground for a new world-class biological
facility in Raleigh, North Carolina."
"With these, and other major events anticipated in fiscal
1995, we are confident about our commitment to the aggressive
growth and profit targets we have set." Holman said the
company is committed to achieving compounded annual sales
growth of 10 to 12 percent and earnings growth of at least 15
percent through 1999.
Mallinckrodt Group Inc., a Fortune 250 company, had net
sales of $1.94 billion in fiscal 1994. Headquartered in St.
Louis, Missouri, the company provides human and animal health
products and specialty chemicals through its three
international technology-based businesses -- Mallinckrodt
Chemical and Mallinckrodt Medical, both headquartered in St.
Louis, Missouri and Mallinckrodt Veterinary, headquartered in
Mundelein, Illinois. Mallinckrodt Group and its subsidiaries
have approximately 10,000 employees worldwide.
