SmithKline Beckman President Quits as Sales Sag, Profits Fall 60%

SmithKline Beckman Corp. said today its president has resigned amid differences over the direction of the giant health-care company at a time when it is faced with sagging sales of its blockbuster ulcer drug and takeover rumors.

George W. Ebright’s resignation coincided with the release of SmithKline’s earnings, which showed a 60% drop in the company’s 1988 profit.

Ebright’s resignation is effective immediately, the company said. His duties will be assumed by Henry Wendt, SmithKline’s chairman and chief executive officer.

“George and I have had differences on matters of corporate policy. Nevertheless, I accept his resignation with deep regret,” Wendt said in a prepared statement. He added that Ebright “has played a major role in the diversification of SmithKline Beckman and the building of our businesses.”

SmithKline said its fourth-quarter net income rose 12% to $159.4 million, or $1.28 a share, from $141.9 million, or $1.14 a share in the year-earlier quarter. Revenue rose to $1.3 billion from $1.2 billion in the 1987 period.

The fourth-quarter figures were bolstered by income from the partial spin-off of Beckman Instruments, which brought in $46.1 million, the company said.

Future Direction

Analysts said Ebright’s abrupt resignation probably stemmed from differences with Wendt over the future direction of the company.

“Mr. Ebright was probably in favor of retaining control at the top and Mr. Wendt was probably in favor of more independence of the units,” said Ronald M. Nordmann, a stock analyst with PaineWebber.

Ebright, who also was chief operating officer, stood to lose responsibility with any independence given to the individual units, Nordmann said.

Ebright, 51, who became president in April, 1987, joined the company in 1963 in the accounting department. Wendt, 55, became chairman the same month, 32 years after joining SmithKline’s international marketing division.