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
May 17, 1999
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 May 17, 1999. The relevant portion of the
text of that release was as follows:
MALLINCKRODT PROVIDES OUTLOOK FOR FISCAL 2000
ST. LOUIS, Mo., May 17, 1999 - During a Mallinckrodt Inc. (NYSE:MKG)
investment community meeting held here today, the company's management
said it is comfortable with a FY2000 earnings per share range of $2.50
to $2.60. Sales and operating earnings are estimated to grow in the 4
to 6 percent range after absorbing an estimated 2 to 3 percent price
erosion. C. Ray Holman, chairman and chief executive officer,
said that actual price erosion could turn out to be less severe,
depending on market conditions.
In opening remarks, Holman told investors, analysts and bankers at the
meeting that within the past three years Mallinckrodt has transformed
itself into a "new company, with a new look, a new competitive spirit
and a single new focus-healthcare. We have a billion dollar U.S.
hospital products business, ranking us in the top ten producers of
medical supplies. Overall, our size, breadth and leadership position
us well for the future.
"Not only is the medical supplies market large; it is growing at a
respectable overall annual rate of at least 6 percent," Holman said.
"We believe our product lines for respiratory care, diagnostic imaging
and analgesic pharmaceuticals put us in the right market segment, at
the right time. In fact, the markets we serve are growing faster than
the overall medical supplies market."
In Respiratory, sales growth of 7 to 8 percent will be driven by
market growth and new products such as perinatal oximetry, new product
platforms in the alternate care businesses and the ability to connect
the entire respiratory product line together to provide lower cost for
the hospital and better care for the patient. Operating earnings in
the respiratory group are expected to be up strongly as the business
continues to benefit from the synergies achieved from the Nellcor
Puritan Bennett acquisition as well as ongoing strategic cost
management to improve manufacturing techniques and purchasing.
In Imaging, sales growth in the ultrasound and radiopharmaceuticals
markets and licensing complementary products for distribution may be
offset by continued lower pricing in X-ray contrast media, resulting
in flat sales. Reductions in manufacturing and administrative costs
will partially offset the lower pricing in X-ray contrast media, but
operating earnings will likely be down from fiscal 1999.
Pharmaceuticals will continue to build its position in dosage products
by entering the brand/NDA area. Another high growth focus will be
adding pemoline and dextroamphetamine to Mallinckrodt's product
offering for attention deficit disorder. Biotech custom peptides
offer longer-term opportunities for growth. For FY2000, sales growth
of 7 to 8 percent can be expected, with operating earnings expected to
grow at a similar rate.
Based in St. Louis, Mo., Mallinckrodt Inc. has three healthcare
product groups - Respiratory, Imaging and Pharmaceuticals. The
company operates in more than 100 countries and had fiscal 1998 net
sales of $2.4 billion. The Mallinckrodt web site address is
www.mallinckrodt.com.
This news release contains forward-looking statements that involve
risks and uncertainties. Forward-looking statements may be identified
by their use of words such as "plans," "expects," "will"
"anticipates," "believes" and other words of similar meaning. These
statements are based on current expectations; actual results may
differ materially. Among the factors that could cause actual results
to differ materially from those projected 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; difficulties or delays in
addressing "Year 2000" problems in the company's operations, or the
inability of a major supplier or customer to continue operations due
to such problems; and the risk factors reported from time to time in
the company's SEC reports. The Company undertakes no obligation to
update any forward-looking statements as a result of future events or
developments.
# # #
Mallinckrodt Inc.
/s/ ROGER A. KELLER
- -----------------------
Vice President, Secretary
and General Counsel
DATE: May 17, 1999
