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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
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JANUARY 26, 1995
(Date of Report)
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JANUARY 18, 1995
(Date of Earliest Event Reported)
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PFIZER INC.
(Exact name of registrant as specified in its Charter)
DELAWARE 1-3619 13-531570
(State or other jurisdiction (Commission File Number) (I.R.S. Identification
of incorporation) No.)
235 EAST 42ND STREET, NEW YORK, NEW YORK 10017
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING
AREA CODE (212) 573-2323
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ITEM 5. OTHER EVENTS
On January 18, 1995, Pfizer Inc. announced its preliminary financial results
for the fourth quarter and the full year 1994. The press release is attached
hereto as Exhibit 99 and is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit 99. Press Release of the Company dated January 18, 1995.
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 thereunto duly authorized.
PFIZER INC.
(Registrant)
By: /s/ Terence J. Gallagher
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Terence J. Gallagher
VICE PRESIDENT-CORPORATE GOVERNANCE
Date: January 26, 1995
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EXHIBIT 99
For immediate release :
January 18, 1995
PFIZER INC SALES, NET INCOME AND EPS INCREASE
TO RECORD LEVELS FOR QUARTER, YEAR
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COMPANY REPORTS FOURTH-QUARTER SALES UP BY 16 PERCENT;
EPS INCREASED BY 20 PERCENT
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NET INCOME REPORTED OVER $1 BILLION FOR FIRST TIME
NEW YORK, Jan. 18 -- Pfizer Inc today reported fourth-quarter net income of $334
million ($1.08 per share) on sales of $2,300 million. For the year, Pfizer
reported net income of $1,298 million ($4.19 per share) on sales of $8,281
million. Fourth-quarter and full-year sales increased by 16 percent and 11
percent, respectively.
On an ongoing business basis, fourth-quarter net income was up 16 percent and
earnings per share (eps) rose 17 percent. For the year, net income increased 10
percent, and eps was up 13 percent. These comparisons exclude the effect of pre-
tax charges taken in 1993 for restructuring, divestitures and unusual items.
Including the impact of the pre-tax charges, reported net income for the quarter
increased by 16 percent and eps increased by 20
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2
percent. For the full year, net income rose by 97 percent and eps increased by
104 percent. Foreign exchange favorably impacted sales by 3 percent in the
quarter, partially offset by a 2-percent decline resulting from price decreases.
Currency and pricing had no effect on full-year sales.
"We are proud of this performance," said William C. Steere, Jr., chairman and
chief executive officer, "particularly because the sales increases were driven
entirely by volume. Our new products continue to be very well received by the
health-care community."
He noted that the combined worldwide sales of the six pharmaceuticals introduced
in the 1990s -- Zoloft, our antidepressant; Norvasc, for treatment of angina and
hypertension; our azalide antibiotic Zithromax; Cardura, for the treatment of
hypertension; Diflucan, our revolutionary anti-fungal; and Glucotrol XL, the
once-daily version of our popular diabetes drug -- topped $2.7-billion for the
year.
"The sales of these products grew by an aggregate 44 percent for both the
quarter and the year," Mr. Steere said. "The contribution of these six and of
other new products across all our businesses as well as the depth and breadth of
our research and development portfolio support the strength of our innovation-
based strategy and commitment to R&D excellence."
SEGMENT SALES
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3
Each of the Pfizer business segments contributed sales growth in the fourth
quarter, and all but Food Science showed sales increases for the full year.
Sales of the Health Care segment increased by 17 percent for the quarter and by
12 percent for the year. Pfizer worldwide sales of pharmaceuticals increased by
18 percent for the quarter and 13 percent for the year, driven by strong new
product performance in the U.S. and abroad.
Sales of Procardia XL, the company's largest-selling product, increased by 10
percent for the quarter reflecting normal variations in trade stocking patterns.
Sales for the year were comparable to 1993.
Hospital Products sales increased by 12 percent for the quarter and by 6 percent
for the year. This business benefited from product launches and increased sales
in 1994 both of coronary catheters used in angioplasty and of stents used to
keep peripheral blood vessels and bile ducts open after blockages are cleared.
Foreign exchange also contributed to the increase for the quarter.
Consumer Health Care sales increased by 16 percent for the quarter (10 percent
for the year). Several small international
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acquisitions and line extensions in the U.S. contributed to the increase.
Sales of the Animal Health business increased by 9 percent for the quarter (5
percent for the year) as a result both of the increasing strong performance of
Dectomax, an innovative anti-parasitic used in cattle, and of foreign exchange.
In Food Science, sales increased by 8 percent for the quarter (a 4-percent
decline for the year) as specialty products gained 16 percent and 13 percent,
respectively, for the quarter and the year.
OPERATING INCOME
Excluding the 1993 pre-tax charge, operating income growth (24 percent for the
quarter and 18 percent for the year) outpaced sales growth. The company
achieved its goal of a 1.5-percentage-point improvement in operating margin,
which contributed about $125 million in incremental operating income. This
improved performance stems from a favorable business mix, moderation in expense
growth and the initial benefits of restructuring.
"We have an ongoing commitment to operating margin improvement," said Mr.
Steere. "We continue to make strides in our corporate re-engineering program
and we will continue to seek innovative new products as well as new uses for
existing products through
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5
our long-standing commitment to R&D. Our strategy of sharpening our focus on
our core businesses has served the company and our shareholders well, and we
expect it will continue to do so for the foreseeable future."
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6
ATTACHMENT 1
AS REPORTED
PFIZER INC AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(millions of dollars except per share data)
<TABLE>
<CAPTION>
Fourth Quarter Full Year
------------------------- % ------------------------- %
1994 1993 Growth 1994 1993 Growth
----------- ----------- ------ ----------- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Net sales $ 2,300.2 $ 1,989.2 16 $ 8,281.3 $ 7,477.7 11
Operating costs and expenses
Cost of sales 546.3 475.1 15 1,918.6 1,772.0 8
Selling, informational and
administrative expenses 923.7 822.1 12 3,250.8 3,066.0 6
Research and development expenses 327.3 285.6 15 1,139.4 974.4 17
Divestitures, restructuring and
unusual items-net - - * - 752.0 *
----------- ----------- ----------- -----------
Income from operations 502.9 406.4 24 1,972.5 913.3 116
----------- ----------- ----------- -----------
Interest income 37.8 42.4 (11) 123.0 163.5 (25)
Interest expense (30.8) (25.2) 22 (126.9) (106.5) 19
Other income 4.2 2.9 45 20.0 34.6 (42)
Other deductions (35.2) (35.0) 1 (127.1) (153.5) (17)
----------- ----------- ----------- -----------
Non-operating income/(deductions)-net (24.0) (14.9) 61 (111.0) (61.9) 79
----------- ----------- ----------- -----------
Income before provision for taxes on
income and minority interests 478.9 391.5 22 1,861.5 851.4 119
Provision for taxes on income 143.7 101.7 41 558.5 191.3 192
Minority interests 1.2 0.9 33 4.6 2.6 77
----------- ----------- ----------- -----------
Net income $ 334.0 $ 288.9 16 $ 1,298.4 $ 657.5 97
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Earnings per common share $ 1.08 $ 0.90 20 $ 4.19 $ 2.05 104
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
* Calculation not meaningful
1) Subsidiaries operating outside the United States generally are included
on a fiscal year basis ended November 30.
2) Divestitures, restructuring and unusual items-net for the full year of
1993 includes a pre-tax charge of $750 million for certain restructuring
and unusual items including personnel reductions and the writedown of
certain tangible assets as well as intangible assets whose carrying
value will not be recovered through future cash flows. Also included in
the full year of 1993 are a pre-tax gain of approximately $60 million
resulting from the sale of the Company's interest in Minerals
Technologies Inc., offset by charges of $62 million for restructuring,
consolidation and streamlining of certain of the Company's businesses.
Excluding these amounts, 1994 full year growth in income from
operations, net income and earnings per share would have been 18%, 10%
and 13%, respectively.
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7
ATTACHMENT 2
ONGOING OPERATIONS
PFIZER INC AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(millions of dollars except per share data)
<TABLE>
<CAPTION>
Fourth Quarter Full Year
------------------------- % ------------------------- %
1994 1993 Growth 1994 1993 Growth
----------- ----------- ------ ----------- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Net sales $ 2,300.2 $ 1,986.7 16 $ 8,281.3 $ 7,465.6 11
Operating costs and expenses
Cost of sales 546.3 472.6 16 1,918.6 1,759.9 9
Selling, informational and
administrative expenses 923.7 822.1 12 3,250.8 3,066.0 6
Research and development expenses 327.3 285.6 15 1,139.4 974.4 17
----------- ----------- ----------- -----------
Income from operations 502.9 406.4 24 1,972.5 1,665.3 18
----------- ----------- ----------- -----------
Interest income 37.8 42.4 (11) 123.0 163.5 (25)
Interest expense (30.8) (25.2) 22 (126.9) (106.5) 19
Other income 4.2 2.9 45 20.0 34.6 (42)
Other deductions (35.2) (35.0) 1 (127.1) (153.5) (17)
----------- ----------- ----------- -----------
Non-operating income/(deductions)-net (24.0) (14.9) 61 (111.0) (61.9) 79
----------- ----------- ----------- -----------
Income before provision for taxes
on income and minority interests 478.9 391.5 22 1,861.5 1,603.4 16
Provision for taxes on income 143.7 101.7 41 558.5 416.8 34
Minority interests 1.2 1.0 20 4.6 2.7 70
----------- ----------- ----------- -----------
Net income $ 334.0 $ 288.8 16 $ 1,298.4 1,183.9 10
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Earnings per common share $ 1.08 $ 0.92 17 $ 4.19 $ 3.70 13
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
1) Subsidiaries operating outside the United States generally are included
on a fiscal year basis ended November 30.
2) The data presented in the above table exclude restructuring and unusual
items as well as the effects of divested businesses.
