SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
June 25, 1998
Mallinckrodt Inc.
(Exact name of registrant as specified in its charter)
New York 1-483 36-1263901
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
675 McDonnell Boulevard, St. Louis, MO 63134
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, (314) 654-2000
including area code
<PAGE>
Item 5. Other Events
A press release was issued June 24, 1998. The relevant portion of
the text of that release was as follows.
(*) Indicates registered trademark
MALLINCKRODT COMMENTS ON EXPECTATIONS
FOR CURRENT FISCAL YEAR, OUTLOOK FOR FISCAL 1999
St. Louis, Mo., June 24, 1998 Mallinckrodt Inc. (NYSE:MKG) Chairman
and Chief Executive Officer C. Ray Holman commented today on the
company's near term outlook.
"We want our investors to understand our prospects and
commitments in plans to deliver value to them," Holman said. "We are
comfortable with the range of analyst expectations for fiscal 1998,
which closes June 30. Looking to fiscal 1999, earnings per share are
expected to be in the $2.25 to $2.35 range."
The outlook is based on recent reviews of strategic plans and
long-range forecasts conducted as part of the company's normal
planning cycle.
Holman said that sales growth next year is projected to be 8
percent to 9 percent. He added that market growth, geographic growth
and new products will drive top line improvements. "Projected market
growth is significant in our key businesses - respiratory care,
imaging and pharmaceuticals - and will provide a good basis for new
growth going forward. We expect geographic growth in Asia and Latin
America as well as in other areas of the world where we have gained
leverage as a result of our combination with Nellcor Puritan Bennett.
"We also expect solid growth from new products, such as
OPTISON(*), our ultrasound cardiac imaging agent, and from
respiratory products, such as several new ventilators," Holman noted.
"These gains will be only partially offset by continued pricing
pressures in certain product lines."
In addition to increased sales volume, synergies from the
integration of Nellcor Puritan Bennett, acquired in August 1997, will
also contribute to strong earnings in fiscal 1999. Additional cost
reductions, including selected workforce and other resource
reductions, also will result in earnings growth in excess of sales
growth.
Additionally, Holman said that the company has decided to retain
Mallinckrodt Baker and operate it on an ongoing basis as a unit of
the Pharmaceutical Group, continuing to take advantage of operational
and commercial efficiencies that exist.
"This business is a good one with inherent value and solid
growth potential in laboratory and microelectronic products," Holman
said. "Mallinckrodt shareholders are best served by having it remain
with us and realizing the value of future earnings growth. We are
committed to increasing the company's value for shareholders and we
believe the contributions from this business will help to meet that
objective."
Based in St. Louis, Missouri, Mallinckrodt Inc. has three
healthcare product groups - Imaging, Pharmaceutical and Respiratory.
The company operates in more than 100 countries and had fiscal 1997
net sales of $1.9 billion. The Mallinckrodt web site address is
(www.mallinckrodt.com).
# # #
This news release contains forward-looking statements that involve
risks and uncertainties. These statements are based on current
expectations; actual results may differ materially. Among the factors
that could cause actual results to differ materially are the
following: the effect of business and economic conditions; the
impact of competitive products and continued pressure on prices
realized by the company for its products; constraints on supplies of
raw materials used in manufacturing certain of the company's
products; capacity constraints limiting the production of certain
products; difficulties or delays in the development, production,
testing, and marketing of products; difficulties or delays in
receiving required governmental or regulatory approvals; market
acceptance issues, including the failure of products to generate
anticipated sales levels; difficulties in rationalizing acquired
businesses and in realizing related cost savings and other benefits;
the effects of and changes in trade, monetary, and fiscal policies,
laws, and regulations; foreign exchange rates and fluctuations in
those rates; the costs and effects of legal and administrative
proceedings, including environmental proceedings and patent disputes
involving the company; and the risk factors reported from time to
time in the company's SEC reports
Mallinckrodt Inc.
ROGER A. KELLER
Vice President, Secretary
and General Counsel
DATE: June 24, 1998
