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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
FORM 10-Q/A No. 1
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
--- THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
--- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-483
______________________________
MALLINCKRODT GROUP INC.
(Exact name of registrant as specified in its charter)
New York 36-1263901
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7733 Forsyth Boulevard
St. Louis, Missouri 63105-1820
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 314-854-5200
______________________________
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 .
Applicable Only To Issuers Involved In Bankruptcy
Proceedings During The Preceding Five Years:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or 15(d)
of the Securities Exchange Act of 1934 subsequent to the distribution
of securities under a plan confirmed by a court. Yes . No .
Applicable Only To Corporate Issuers:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date.
76,529,742 shares excluding 10,586,547 treasury shares as of September
30, 1995.
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The purpose of this amendment is to amend in its entirety Part 1,
Item 2 to the Registrant's Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 1995.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
General
- -------
Earnings from continuing operations for the first quarter ended
September 30, 1995 were $36 million, or 46 cents per share. This
represents a 15 percent increase in per-share earnings from continuing
operations compared with $31 million, or 40 cents per share, during
the same period a year ago. Net sales for the quarter were up 10
percent to $492 million, compared to $449 million a year earlier. Net
earnings for the first quarter were $39 million, or 50 cents per
share, compared with $34 million, or 44 cents per share, during the
same period a year ago. Both fiscal 1996 and fiscal 1995 first
quarter results reflect reporting of the animal feed ingredients
business as a discontinued operation, fiscal 1995 having been
restated.
A comparison of sales and operating earnings follows:
(In millions)
Three Months Ended
September 30,
------------------
1995 1994
------ ------
Sales
- -----
Mallinckrodt Chemical $ 153 $ 111
Mallinckrodt Medical 238 230
Mallinckrodt Veterinary 101 108
------ ------
$ 492 $ 449
====== ======
Operating earnings
- ------------------
Mallinckrodt Chemical $ 8 $ 7
Mallinckrodt Medical 58 51
Mallinckrodt Veterinary 5 4
Corporate (7) (6)
------ ------
$ 64 $ 56
====== ======
Business Segments
- -----------------
MALLINCKRODT CHEMICAL
Net Sales Three Months Ended
(In millions) September 30,
------------------
1995 1994
------ ------
Catalyst, Performance & Lab Chemicals $ 96 $ 55
Pharmaceutical Specialties 57 56
------ ------
$ 153 $ 111
====== ======
Mallinckrodt Chemical, including its $7.3 million equity-investment
share of earnings from the flavors joint venture, Tastemaker, achieved
earnings of $15.5 million for the first quarter, up 22 percent over
the prior year's $12.7 million. Net sales increased 38 percent
compared to the corresponding prior year quarter. Catalyst,
performance and lab chemicals sales increased 75 percent for the
quarter. Results benefited from the acquisition of J.T. Baker
Inc. and the reclassification of a small specialty chemical business
to continuing operations, both occurring in 1995. Pharmaceutical
specialties sales improved by 2 percent for the quarter. Continued
strength in worldwide sales volume for medicinal narcotics was the
main contributor to the increase.
MALLINCKRODT MEDICAL
Net Sales Three Months Ended
(In millions) September 30,
------------------
1995 1994
------ ------
Imaging $ 161 $ 160
Anesthesiology & Critical Care 77 70
------ ------
$ 238 $ 230
====== ======
Mallinckrodt Medical's operating earnings for the quarter increased
to $57.8 million, up 14 percent compared to the first quarter
of last year. Net sales for the first quarter improved 4 percent
over the prior year first quarter. Imaging sales for the quarter were
1 percent higher than the corresponding prior year quarter. Improved
nuclear medicine sales volumes were partially offset by lower growth
in X-ray contrast media sales, principally from timing of orders and
distributor inventory adjustments. Anesthesiology and critical care
sales were up 10 percent largely from improved sales volumes of
respiratory therapy products.
MALLINCKRODT VETERINARY
Net Sales Three Months Ended
(In millions) September 30,
------------------
1995 1994
------ ------
Animal Health $ 101 $ 108
====== ======
Mallinckrodt Veterinary's first quarter operating earnings were $5.0
million, up 19 percent compared to the same period last year,
excluding feed ingredients for both current and prior year. Net sales
on the same basis decreased 7 percent compared to the corresponding
prior year quarter. Lower first quarter sales resulted from the exit
of certain Latin American distributorships last fiscal year and lower
animal productivity sales attributable to weather conditions in North
America. Lower operating expenses contributed to the improvement in
operating earniangs.
Corporate Matters
- -----------------
Corporate expense increased $.7 million for the first quarter compared
to last year. The Company's effective tax rate for the first three
months was 37.5 percent, compared to last year's 38.0 percent. This
decrease reflects an earnings mix toward lower statutory tax rate
jurisdictions and the utilization of certain operating losses.
FINANCIAL CONDITION
The Company's financial resources are expected to continue to be
adequate to support existing businesses and fund new opportunities.
Since June 30, 1995, cash and cash equivalents increased $28 million.
Operations provided $23 million of cash, while acquisition and
capital spending totaled $39 million. The Company's current ratio at
September 30, 1995, was 1.3:1. Debt as a percentage of invested
capital was 39 percent.
The Company's Board of Directors previously authorized repurchase of a
total of 42 million shares of its common stock. Thirty million shares
have been repurchased under this authorization, .5 million during the
quarter ended September 30, 1995.
On April 8, 1992, a shelf registration statement was filed with the
Securities and Exchange Commission (SEC) for $250 million of debt
securities. As of September 30, 1995, $50 million of securities under
the shelf remain unissued. On February 15, 1995, a shelf registration
statement was filed with the SEC for $250 million of debt securities.
On September 15, 1995, the Company issued $100 million of 6.75% notes
due September 15, 2005, from this shelf registration. As of September
30, 1995, $150 million of securities under the shelf remain unissued.
The Company has a $450 million private-placement commercial paper
program. This program is backed by $650 million of U.S. lines of
credit, $100 million available until March 1996 and $550 million
available until November 1999. At September 30, 1995, commercial
paper borrowings and borrowings under the U.S. credit lines amounted
to $126 million and $90 million, respectively. At September 30, 1995,
non-U.S. lines of credit totaling $280 million were also available and
borrowings under these lines amounted to $38 million. The non-
U.S. lines are cancelable at any time.
Estimated capital spending for the year ending June 30, 1996, is
approximately $200 million.
* * * * * * * * * * * * * *
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Mallinckrodt Group Inc.
- ------------------------------
Registrant
By: MICHAEL A. ROCCA By: WILLIAM B. STONE
--------------------------- ------------------------
Michael A. Rocca William B. Stone
Senior Vice President Vice President and
and Chief Financial Officer Controller
Date: November 15, 1995
