ICN Turns Losses Around, Reports $5.3-Million Gain

ICN Pharmaceuticals Inc. on Tuesday reported earning $5.3 million on sales of $81 million for the second quarter, contrasted with a loss of $1.5 million on sales of $67 million in the corresponding period last year.

Each of the company’s three Costa Mesa-based subsidiaries--SPI Pharmaceuticals Inc., ICN Biomedicals Inc. and Viratek Inc.--operated profitably during the quarter ended May 31. SPI Pharmaceuticals, buoyed by its merger with Yugoslavia’s largest drug manufacturer, took the lead, posting net income of $5.7 million on sales of $54.6 million.

The parent company said it reduced its current liabilities and long-term debt by $25.6 million during the quarter, thanks to a strong U.S. dollar. It reported a pretax income of $7.3 million, which included a non-cash gain of $6.1 million in foreign currency adjustments to its current and long-term debt of about $222 million.

“A large portion of our company’s debt is (owed) in foreign denomination, such as Swiss francs and Dutch guilders,” said ICN spokesman Jack Sholl.

“As these debts appear on our company’s books, they are converted to U.S. dollars, which have strengthened against most major currencies during the second quarter,” he said.

For the first six months, ICN net income was $5.8 million on sales of $141 million, contrasted with a loss of $8 million on sales of $134 million a year earlier.