Bergen Registers Record Revenue for 1st Quarter : Earnings: In announcing the $1.6-billion figure, the Orange drug wholesaler says it will keep Durr-Fillauer’s medical-supply business, having received unacceptable offers for the subsidiary.
Bergen Brunswig Corp. announced record first-quarter revenue on Wednesday and said it will stop looking for a buyer for a portion of subsidiary Durr-Fillauer Medical Inc.
Bergen, the nation’s second-largest drug wholesaler, said it has resolved to keep and develop Durr-Fillauer’s medical-supply business because the offers it received were unacceptable.
The company said its first-quarter revenue increased 39% to a record $1.6 billion from $1.15 billion. The company attributed an undefined portion of the increase to the acquisitions of Alabama competitor Durr-Fillauer in September and substantially all of the drug-distribution business of Owens & Minor Inc. in February.
Earnings for the quarter, which ended Nov. 30, were $11.9 million, or 32 cents a share, an increase of 34% over the same period a year earlier, when earnings were $8.9 million, or 22 cents a share. Profit for the quarter a year earlier, however, included a $5.1-million after-tax charge for probable losses incurred in connection with credit extended to some customers.
Comparing continuing operations, profit for the year-earlier quarter was $6.6 million. That does not include earnings of $2.3 million from Commtron Corp., a video distribution subsidiary that was sold last June.
Commenting on the first-quarter report, Robert E. Martini, chairman and chief executive officer of Bergen Brunswig, said he is pleased with gains in market share and that the company will work to increase its earnings.
“A continuing decline in pharmaceutical gross profit margins due to reduced opportunities for investment buying and accelerated price competition has impacted earnings,” Martini said in a statement.
“We will work to offset some of the margin pressure by a reduction in the distribution, selling and administrative costs as a percent of net sales. We also are seeking to balance competitive pressures by signing long-term contracts with key customer groups.”
