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
DATE OF REPORT (Date of earliest event reported): June 1, 1999
AMERICAN HOME PRODUCTS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-1225 13-2526821
(State or other (Commission (IRS Employer
jurisdiction of incorporation) File Number) Identification No.)
Five Giralda Farms, Madison, New Jersey 07940
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 973-660-5000
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Item 5. Other Events.
On June 1, 1999, American Home Products Corporation ("AHP") announced that
its expected earnings will be lower than earlier estimates due to shortfalls in
its agricultural products business and the livestock segment of its animal
health business. AHP issued a press release concerning such lower expected
earnings which is attached hereto as Exhibit 99 and is incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
(99) Press Release dated June 1, 1999.
SIGNATURE
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 hereunto duly authorized.
AMERICAN HOME PRODUCTS CORPORATION
By: /s/ Paul J. Jones
Vice President and Comptroller
(Duly Authorized Signatory and
Chief Accounting Officer)
Dated: June 2, 1999
<PAGE>
EXHIBIT INDEX
(99) Press Release dated June 1, 1999.
Exhibit 99
AMERICAN HOME PRODUCTS CORPORATION ANNOUNCES
LOWER EXPECTED EARNINGS FOR THE SECOND QUARTER AND YEAR
DUE TO AGRICULTURAL AND ANIMAL HEALTH SHORTFALLS
Madison, New Jersey, June 1, 1999 - American Home Products Corporation
(NYSE:AHP) announced today that the Company's earnings for the 1999 second
quarter and year will be affected by weaker than expected results in the
agricultural products business and the livestock segment of its animal health
business. As a result, diluted earnings per share for the second quarter and
year 1999 are expected to be approximately $0.07 and $0.11 lower than analyst
consensus estimates of $0.41 and $1.89.
The shortfall in the North American agricultural products business is due
primarily to reduced demand for grain in international markets and reduced U.S.
livestock grain consumption combined with record harvests over the last two
years in the Americas. As a result, commodity prices are at their lowest levels
in more than a decade. In turn, farmers are reducing input cost by lowering
application rates and choosing the lowest cost chemical alternative.
Similarly, in the livestock sector of the animal health business, beef and
swine prices have been at historic lows and producers are reducing consumption
of livestock related animal health products more significantly than we had
recently anticipated.
Unsatisfactory conditions prevailing in these businesses are expected to
continue into next year.
"We are obviously disappointed with the performance of our agricultural and
livestock animal health businesses and are concerned about their outlook for the
near future," said Mr. John R. Stafford, Chairman, CEO and President of AHP. "We
are reviewing strategic alternatives with respect to the agricultural product
and livestock businesses."
Mr. Stafford went on to say that "sales of Premarin, Effexor and recently
launched Enbrel are growing and most importantly the pharmaceutical pipeline is
the strongest in the company's history. Anticipated results for the
pharmaceutical, consumer health driven by the Centrum family of products, and
companion animal businesses remain strong."
American Home Products Corporation is one of the world's largest
research-based pharmaceutical and health care products companies. It is a leader
in the discovery, development, manufacturing and marketing of prescription drugs
and over-the-counter medications. It is also a global leader in vaccines,
biotechnology, agricultural products, and animal health care.
The statements in this press release that are not historical facts are
forward-looking statements that involve risks and uncertainties including,
without limitation, risks associated with the inherent uncertainty of
pharmaceutical research, product development and commercialization, the impact
of competitive products, and patent, and other risks and uncertainties,
including those detailed from time to time in AHP's periodic reports, including
quarterly reports on Form 10-Q and the annual report on Form 10-K, filed with
the Securities and Exchange Commission. Actual results may differ from
forward-looking statements.
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