P.M. BRIEFING : SmithKline Profits Drop 65%
SmithKline Beecham PLC reported today that its profits for 1989 declined 65% over a year ago due largely to heavy costs associated with the recent merger that created the world’s second-largest pharmaceuticals company.
The company said its net profit totaled $209 million, compared with $591 million in 1988. Sales, however, rose 14% to $7.9 billion from $6.9 billion.
The full-year results were the first for the company since its merger in July, 1989. Britain’s Beecham Group PLC and Philadelphia-based SmithKline Beckman Corp. merged through an exchange of shares, creating the second-largest pharmaceuticals company after Rahway, N.J.-based Merck & Co.
The 1989 results included an $805-million restructuring charge as a result of the combination for closing some of its facilities, cutting staff and writing down certain assets. SmithKline Beecham said it also took a $124-million extraordinary loss due to merger transaction costs.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
