Upjohn Will Close Plant, Take $200-Million Charge
Upjohn Co. said Wednesday that it will take an after-tax charge of about $200 million, or $1.08 a share, against its fourth-quarter earnings to close down a chemical plant and cover other expenses.
The pharmaceutical company said it will scale back production at its North Haven, Conn., Fine Chemical plant early next year as the first stage in a three-year phase-out of the operation.
It also will record a number of other non-recurring charges, including the estimated cost of a previously announced early retirement plan for U.S. employees.
“These charges primarily reflect steps we are taking to become more competitive in our core pharmaceutical business,” Chairman Theodore Cooper said in a statement. “They will make us a stronger company in 1990 and beyond.”
Upjohn’s stock shed 25 cents to close at $36.625 on the New York Stock Exchange Wednesday.
Closing the facility will also improve the company’s gross margins going into 1990, said analyst Ron Nordmann at Paine Webber.
The total charge “seems timely and necessary . . . and gives more confidence to following years,” said Richard Vietor, a pharmaceutical analyst at Merrill Lynch Research.
Upjohn said the fourth-quarter charge related to the plant is about 65% of the total charge and will be accounted for as discontinued operations.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
