Beckman’s Net Earnings Fall 6% in Quarter

Beckman Instruments Inc. reported second-quarter net earnings of $11.4 million, down 6% from net earnings of $12.1 million for the same period a year ago. Sales for the second quarter ended June 30 were $200.5 million, up 3% from $194.7 million for the second quarter of 1988.

For the first six months of 1989, Beckman posted net earnings of $22.1 million, little changed from $22 million for the same period a year ago; sales were $399.5 million, up 5% from $381 million.

The company attributed the decline in second-quarter earnings primarily to the addition of corporate debt in the wake of Beckman becoming financially independent in November, 1988, when SmithKline Beckman Corp. spun off 16% of Beckman’s stock.

“In operating income for the quarter we are up 10%, but the earnings for the quarter were down 6% because of the interest expense on the debt and also the strength of the dollar, which depressed earnings from business overseas,” said George Kilmain, Beckman’s vice president of finance.

Kilmain said that because Beckman already is operating independently, its earnings will not be adversely affected by the completion of its spinoff from SmithKline Beckman. The spinoff is part of SmithKline’s merger with Beecham Group PLC, which is expected to be approved Wednesday at the SmithKline shareholders annual meeting in Philadelphia.

Besides being burdened with extra interest payments, Kilmain said, Beckman in the first half of the year experienced a softening of its market for biological research instruments as several national governments, including Japan, the United Kingdom and the United States, reduced financial support of research programs.