FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
(Mark One)
----
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
---- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
----
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
---- SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission File No. 1-2189
ABBOTT LABORATORIES
An Illinois Corporation I.R.S. Employer Identification
No. 36-0698440
100 Abbott Park Road
Abbott Park, Illinois 60064-3500
Telephone: (708) 937-6100
One Abbott Park Road
Abbott Park, Illinois 60064-3500
(Former address, changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section l3 or l5(d) of the Securities Exchange Act of l934 during
the preceding l2 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X . No .
----- -----
As of July 31, 1995, the Corporation had 793,539,326 common shares without par
value outstanding.
PART 1 FINANCIAL INFORMATION
ABBOTT LABORATORIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
ABBOTT LABORATORIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
(Dollars in thousands except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
----------------------- ----------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
Net Sales. . . . . . . . . . . . . . . . $2,500,310 $2,204,030 $5,024,707 $4,419,278
---------- ---------- ---------- ----------
Cost of products sold. . . . . . . . . . 1,086,023 946,816 2,174,934 1,911,088
Research and development . . . . . . . . 287,360 244,989 534,535 471,786
Selling, general and administrative. . . 532,277 468,739 1,131,109 965,923
---------- ---------- ---------- ----------
Total Operating Cost and Expenses. . . 1,905,660 1,660,544 3,840,578 3,348,797
---------- ---------- ---------- ----------
Operating Earnings . . . . . . . . . . . 594,650 543,486 1,184,129 1,070,481
---------- ---------- ---------- ----------
Interest expense . . . . . . . . . . . . 17,852 12,253 31,804 23,749
Interest and dividend income . . . . . . (13,202) (8,296) (24,212) (16,726)
Other (income) expense, net. . . . . . . (11,461) 1,593 (16,774) 2,331
---------- ---------- ---------- ----------
Earnings Before Taxes. . . . . . . . . . 601,461 537,936 1,193,311 1,061,127
Taxes on Earnings. . . . . . . . . . . . 177,431 161,381 352,027 318,338
---------- ---------- ---------- ----------
Net Earnings . . . . . . . . . . . . . . $ 424,030 $ 376,555 $ 841,284 $ 742,789
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net Earnings Per Common Share. . . . . . $.53 $.46 $1.05 $.91
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Cash Dividends Declared
Per Common Share . . . . . . . . . . . $.21 $.19 $.42 $.38
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
The accompanying notes to condensed consolidated financial statements are an
integral part of this statement.
2
ABBOTT LABORATORIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
JUNE 30 DECEMBER 31
------------- -----------
1995 1994
------------- -----------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 254,395 $ 290,272
Investment securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,463 25,056
Trade Receivables, less allowances of $155,059 in 1995
and $128,929 in 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,518,773 1,468,519
Inventories:
Finished products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531,740 514,715
Work in process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239,467 218,643
Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278,557 284,833
---------- -----------
Total Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,049,764 1,018,191
Prepaid income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534,679 549,091
Other prepaid expenses and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626,057 525,199
--------- ---------
Total Current Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,040,131 3,876,328
--------- ---------
Investment Securities Maturing after One Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388,783 316,195
--------- ---------
Property and Equipment, at Cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,544,199 7,053,604
Less: accumulated depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . . . 3,391,117 3,132,754
--------- ---------
Net Property and Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,153,082 3,920,850
Deferred Charges and Other Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408,327 410,351
----------- -----------
$ 8,990,323 $ 8,523,724
----------- -----------
----------- -----------
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
Short-term borrowings and current portion of long-term debt. . . . . . . . . . . . . . . . . . . . $ 829,594 $ 772,503
Trade accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754,266 671,100
Salaries, income taxes, dividends payable, and other accruals. . . . . . . . . . . . . . . . . . . 1,951,201 2,032,263
----------- -----------
Total Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,535,061 3,475,866
----------- -----------
Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435,730 287,091
----------- -----------
Other Liabilities and Deferrals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 776,323 711,367
----------- -----------
Shareholders' Investment:
Preferred shares, $1 par value
Authorized - 1,000,000 shares, none issued -- --
Common shares, without par value
Authorized - 1,200,000,000 shares
Issued at stated capital amount -
1995: 804,785,789 shares; 1994: 813,046,602 shares. . . . . . . . . . . . . . . . . . . . . . 546,974 505,170
Earnings employed in the business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,762,687 3,652,434
Cumulative translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,574) (51,124)
----------- -----------
4,300,087 4,106,480
Less:
Common shares held in treasury, at cost -
1995: 9,732,259 shares; 1994: 9,766,880 shares . . . . . . . . . . . . . . . . . . . . . . . . . . 51,363 51,545
Unearned compensation - restricted stock awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,515 5,535
----------- -----------
Total Shareholders' Investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,243,209 4,049,400
----------- -----------
$ 8,990,323 $ 8,523,724
----------- -----------
----------- -----------
The accompanying notes to condensed consolidated financial statements are an
integral part of this statement.
3
ABBOTT LABORATORIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
(Dollars in thousands)
SIX MONTHS ENDED JUNE 30
-------------------------------
1995 1994
--------- ---------
Cash Flow From (Used in) Operating Activities:
Net earnings . . . . . . . . . . . . . . . . . . $ 841,284 $ 742,789
Adjustments to reconcile net earnings to
net cash from operating activities -
Depreciation and amortization. . . . . . . . . . 260,286 260,450
Trade receivables. . . . . . . . . . . . . . . . 3,604 (92,565)
Inventories. . . . . . . . . . . . . . . . . . . (8,656) (99,720)
Other, net . . . . . . . . . . . . . . . . . . . (61,303) 209,034
--------- ---------
Net Cash From Operating Activities. . . . . 1,035,215 1,019,988
--------- ---------
Cash Flow From (Used in) Investing Activities:
Acquisitions of property and equipment . . . . . (485,627) (436,959)
Investment securities transactions . . . . . . . (104,105) (41,123)
Other. . . . . . . . . . . . . . . . . . . . . . 11,092 16,553
--------- ---------
Net Cash (Used in) Investing Activities . . (578,640) (461,529)
--------- ---------
Cash Flow From (Used in) Financing Activities:
Borrowing transactions . . . . . . . . . . . . . 184,038 (100,106)
Common share transactions. . . . . . . . . . . . (355,741) (284,281)
Dividends paid . . . . . . . . . . . . . . . . . (320,432) (294,663)
--------- ---------
Net Cash (Used in) Financing Activities . . (492,135) (679,050)
--------- ---------
Effect of exchange rate changes on cash and
cash equivalents . . . . . . . . . . . . . . . . (317) 511
--------- ---------
Net (Decrease) in Cash and Cash Equivalents. . . . . (35,877) (120,080)
Cash and Cash Equivalents, Beginning of Year . . . . 290,272 300,676
--------- ---------
Cash and Cash Equivalents, End of Period . . . . . . $ 254,395 $ 180,596
--------- ---------
--------- ---------
The accompanying notes to condensed consolidated financial statements are an
integral part of this statement.
4
ABBOTT LABORATORIES AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
(UNAUDITED)
NOTE 1 - BASIS OF PREPARATION:
The accompanying unaudited, condensed consolidated financial
statements have been prepared pursuant to rules and regulations
of the Securities and Exchange Commission and, therefore, do not
include all information and footnote disclosures normally
included in audited financial statements. However, in the
opinion of management, all adjustments (which include only
normal adjustments) necessary to present fairly the financial
position, cash flows, and results of operations have been made.
It is suggested that these statements be read in conjunction
with the financial statements included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1994.
NOTE 2 - EARNINGS PER COMMON SHARE:
Earnings per common share amounts are computed by using the
weighted average number of common shares outstanding. These
shares averaged 799,246,000 for the six months ended June 30,
1995 and 816,763,000 for the same period in 1994.
NOTE 3 - TAXES ON EARNINGS:
Taxes on earnings reflect the estimated annual effective tax
rates. The effective tax rates are less than the statutory U.S.
Federal income tax rate principally due to tax incentive grants
related to subsidiaries operating in Puerto Rico, the Dominican
Republic, Italy, the Netherlands, and Ireland.
5
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
(Unaudited), Continued
NOTE 4 - LITIGATION AND ENVIRONMENTAL MATTERS:
The Company is involved in various claims and legal proceedings
including numerous antitrust suits and investigations in
connection with the sale and marketing of infant formula
products and the pricing of prescription pharmaceuticals.
In addition, the Company has been identified as a potentially
responsible party for investigation and cleanup costs at a
number of locations in the United States and Puerto Rico under
Federal remediation laws and is voluntarily investigating
potential contamination at a number of Company-owned locations.
The matters above are discussed more fully in Item 1, Business -
Environmental Matters, and Item 3, Legal Proceedings, in the
Annual Report on Form 10-K, which is available upon request, and
in Part II, Item 1, Legal Proceedings, in this Form.
While it is not feasible to predict the outcome of such pending
claims, proceedings, investigations and remediation activities
with certainty, management is of the opinion that their ultimate
disposition should not have a material adverse effect on the
Company's financial position, cash flows, or results of
operations.
6
FINANCIAL REVIEW
RESULTS OF OPERATIONS - SECOND QUARTER AND FIRST SIX MONTHS 1995
COMPARED WITH SAME PERIODS IN 1994
Worldwide sales for the second quarter and first six months
increased 13.4 percent and 13.7 percent, respectively, over the
comparable 1994 periods. Net earnings increased 12.6 percent
and 13.3 percent, respectively, in the second quarter and first
six months 1995. Earnings per share increased 15.2 percent and
15.4 percent, respectively, in the second quarter and first six
months 1995.
Gross profit margin (sales less cost of products sold, including freight and
distribution expenses) was 56.6 percent for the 1995 second quarter, compared
to 57.0 percent for the 1994 second quarter. First half gross margin was
56.7 percent, compared to 56.8 percent a year earlier. The lower gross
profit margins are due to higher project expenses for new products, higher
manufacturing capacity costs for anticipated unit growth, and the effects of
inflation; partially offset by favorable product mix, especially higher sales
of pharmaceuticals, and productivity improvements.
Research and development expenses were $287.4 million and $534.5
million for the second quarter and first six months 1995,
respectively. This represented 11.5 percent and 10.6 percent of
net sales, compared to 11.1 percent and 10.7 percent in 1994.
The majority of research and development expenditures continues
to be concentrated on pharmaceutical and diagnostic products.
Selling, general and administrative expenses for the second quarter and
first six months 1995 increased 13.6 percent and 17.1 percent, respectively,
over the comparable prior year periods, including the adverse effects of the
relatively weaker dollar of 3.7 percent and 2.7 percent, respectively.
Selling, general and administrative expenses also increased as a result of
additional selling and marketing support for new and existing products,
primarily in the pharmaceutical and nutritional segment, and reflect
contributions to the Company's charitable foundation. The six month results
reflect charges against earnings for certain settled and pending litigation.
Other (income) expense, net, includes net foreign exchange
losses of $7.1 million and $15.5 million, respectively, for the
second quarter and first six months 1995 compared with net
foreign exchange losses of $15.3 million and $27.5 million for
the corresponding prior year periods.
7
FINANCIAL REVIEW
(Continued)
INDUSTRY SEGMENTS
Industry segment sales for the second quarter and first six
months 1995 and the related change from the comparable 1994
periods are shown in the table below. The Pharmaceutical and
Nutritional Products segment includes a broad line of adult and
pediatric pharmaceuticals and nutritionals, which are sold
primarily on the prescription or recommendation of physicians or
other health care professionals; consumer products; agricultural
and chemical products; and bulk pharmaceuticals. The Hospital
and Laboratory Products segment includes diagnostic systems for
blood banks, hospitals, commercial laboratories and
alternate-care testing sites; intravenous and irrigation fluids
and related administration equipment; drugs and drug delivery
systems; anesthetics; critical care products; and other medical
specialty products for hospitals and alternate-care sites.
Domestic and international sales for the second quarter and
first six months 1995 primarily reflect unit growth.
International sales were favorably affected 7.8 percent by the
relatively weaker dollar in the second quarter. On a year-to-
date basis, international sales were favorably affected 6.4
percent by the relatively weaker U.S. dollar.
Second Quarter Six Months
--------------------------------------------------------------------------------
SEGMENT SALES 1995 Percent 1995 Percent
(in millions of dollars) Sales Increase Sales Increase
-------------------------------------------------------------------------------
Pharmaceutical and Nutritional
Products:
Domestic $ 895.5 13.9 $1,875.2 15.0
-------------------------------------------------------------------------------
International 498.1 30.1 993.8 30.4
-------------------------------------------------------------------------------
1,393.6 19.2 2,869.0 19.9
Hospital and Laboratory Products:
Domestic 589.2 2.5 1,163.7 2.3
-------------------------------------------------------------------------------
International 517.5 12.4 992.0 11.7
-------------------------------------------------------------------------------
1,106.7 6.9 2,155.7 6.4
Total All Segments:
Domestic 1,484.7 9.1 3,038.9 9.7
-------------------------------------------------------------------------------
International 1,015.6 20.4 1,985.8 20.3
-------------------------------------------------------------------------------
$2,500.3 13.4 $5,024.7 13.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
8
FINANCIAL REVIEW
(continued)
LIQUIDITY AND CAPITAL RESOURCES AT JUNE 30, 1995
COMPARED WITH DECEMBER 31, 1994
------------------------------------------------
Net cash from operating activities for the first six months 1995
totaled $1.035 billion. The Company expects annual cash flow
from operating activities to continue to approximate or exceed
the Company's capital expenditures and cash dividends.
The Company has maintained its favorable bond ratings (AAA by
Standard & Poor's Corporation and Aa1 by Moody's Investors
Service) and continues to have readily available financial
resources, including unused domestic lines of credit of $400
million at June 30, 1995. These lines of credit support
domestic commercial paper borrowing arrangements.
During the first six months 1995, the Company continued its
program to purchase its common shares. The Company purchased
and retired 10,710,000 shares during this period at a cost of
$396 million. As of June 30, 1995, an additional 2,660,000
shares may be purchased in future periods under authorization
granted by the Board of Directors in September 1994.
In May 1995, the Company issued $150 million in senior debt securities under
a registration statement filed with the Securities and Exchange Commission in
1993. Net proceeds were used to retire short-term borrowings and for the
purchase of the Company's common shares. The Company may issue up to an
additional $150 million of debt securities in the future under this
registration statement.
LEGISLATIVE ISSUES
------------------
The Company's primary markets are highly competitive and subject
to substantial government regulation, and the trend is toward
more stringent regulation. The Company expects debate to
continue during 1995 at both the federal and the state levels
over the availability, method of delivery, and payment for
health care products and services. The Company believes that if
legislation is enacted, it could have the effect of reducing
prices, or reducing the rate of price increases, for health and
medical insurance and medical products and services.
International operations are also subject to a significant
degree of government regulation. It is not possible to predict
the extent to which the Company or the health care industry in
general might be adversely affected by these factors in the
future. A more complete discussion of these factors is
contained in Item 1, Business, in the Annual Report on Form
10-K, which is available upon request.
9
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company's 10-Q for the fiscal quarter ended March 31, 1995
reported 23 antitrust suits, one shareholder derivative suit, and seven
investigations in connection with the Company's marketing of infant formula
products. During the second quarter, the trial court dismissed the cases that
were pending in the state courts of Colorado, Florida, Kentucky, Nevada, and
Tennessee. The Colorado, Florida, and Nevada cases are now on appeal. On May
22, 1995, the court denied class certification with respect to the case pending
in state court in Michigan. On May 30, 1995, the court denied class
certification with respect to the case pending in state court in Minnesota. On
June 19, 1995, a jury in federal court in Los Angeles, California found in favor
of the Company and the American Academy of Pediatrics in the anti-trust case
brought by Nestle Food Company. Nestle Food Company has appealed this verdict.
On June 29, 1995, the Supreme Court of the State of Texas dismissed SEGURA V.
ABBOTT LABORATORIES, ET. AL. As of June 30, 1995, 20 antitrust suits, one
shareholder derivative suit, and seven investigations are pending in
connection with the Company's marketing of infant formula products.
The Company's 10-Q for the fiscal quarter ended March 31, 1995
reported 107 antitrust suits in connection with the Company's pricing of
prescription pharmaceuticals. During the second quarter, the Company was
served with 15 new antitrust suits regarding the Company's pricing of
prescription pharmaceuticals. Thirteen of these cases were consolidated in
the litigation that is pending in federal court in Chicago, Illinois and is
known as IN RE: BRAND NAME PRESCRIPTION DRUG ANTITRUST LITIGATION, MDL 997.
The two other cases, both of which purport to be class actions, were filed in
state court. One was filed on May 24, 1995 in San Francisco County,
California on behalf of California consumers. The other was filed on June 6,
1995 in Denver County, Colorado on behalf of Colorado consumers. Each of
these cases alleges that various pharmaceutical manufacturers have conspired
to fix prices for prescription pharmaceuticals and/or to discriminate in
pricing to retail pharmacies by providing discounts to mail-order pharmacies,
institutional pharmacies and HMOs in violation of state and federal antitrust
laws. The suits have been brought on behalf of individuals and retail
pharmacies and name both the Company and other pharmaceutical manufacturers
as well as pharmaceutical wholesalers and at least one mail-order pharmacy
company as defendants. The plaintiffs in these cases seek treble damages in
an unspecified amount, civil penalties and other relief. The Company has
filed or intends to file a response to each of the complaints denying all
substantive allegations. As of June 30, 1995, a total of 122 antitrust suits
are pending in state and federal courts in connection with the Company's
pricing of prescription pharmaceuticals.
While it is not feasible to predict the outcome of such pending
claims, proceedings, and investigations with certainty, management is of the
opinion that their ultimate disposition should not have a material adverse
effect on the Company's financial position, cash flows, or results of
operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11. Statement re: computation of per share earnings -
attached hereto.
12. Statement re: computation of ratio of earnings to fixed
charges - attached hereto.
27. Financial Data Schedule - attached hereto.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter
ended June 30, 1995.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
ABBOTT LABORATORIES
/s/ THEODORE A. OLSON
----------------------------------------
Date August 10, 1995 Theodore A. Olson, Vice President and
Controller (Principal Accounting Officer)
EXHIBIT 11
ABBOTT LABORATORIES AND SUBSIDIARIES
CALCULATION OF FULLY DILUTED EARNINGS PER SHARE
(Dollars and Shares in Millions Except Per Share Amounts)
SIX MONTHS ENDED JUNE 30
----------------------------
1995 1994
--------- ---------
1. Net earnings $ 841.3 $ 742.8
--------- ---------
2. Average number of shares outstanding 799.2 816.8
--------- ---------
3. Earnings per share based upon average
outstanding shares (1 divided by 2) $ 1.05 $ .91
--------- ---------
--------- ---------
4. Fully diluted earnings per share:
a. Stock options granted and outstanding for
which the market price at quarter-end
exceeds the option price 31.1 18.4
--------- ---------
--------- ---------
b. Aggregate proceeds to the Company from
the exercise of options in 4.a. $ 847.9 $ 321.9
--------- ---------
--------- ---------
c. Market price of the Company's common
stock at quarter-end $ 40.50 $ 29.00
--------- ---------
--------- ---------
d. Shares which could be repurchased
under the treasury stock
method (4.b. divided by 4.c.) 20.9 11.1
--------- ---------
--------- ---------
e. Addition to average outstanding shares
(4.a. - 4.d.) 10.2 7.3
--------- ---------
--------- ---------
f. Shares for fully diluted earnings per
share calculation (2. + 4.e.) 809.4 824.1
--------- ---------
--------- ---------
g. Fully diluted earnings per share
(1. divided by 4.f.) $ 1.04 $ .90
--------- ---------
--------- ---------
EXHIBIT 12
ABBOTT LABORATORIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
(Millions of Dollars)
SIX MONTHS ENDED
JUNE 30, 1995
----------------
Net Earnings $ 841
Add (deduct):
Income taxes 352
Capitalized interest cost, net
of amortization (4)
Minority interest 9
--------
Net earnings as adjusted $ 1,198
--------
Fixed Charges:
Interest on long-term and
short-term debt 32
Capitalized interest cost 9
Rental expense representative
of an interest factor 12
--------
Total Fixed Charges 53
--------
Total adjusted earnings available for
payment of fixed charges $ 1,251
--------
--------
Ratio of earnings to fixed charges 23.6
--------
--------
NOTE: For the purpose of calculating this ratio, (i) earnings
have been calculated by adjusting net earnings for taxes on
earnings; interest expense; capitalized interest cost, net of
amortization; minority interest; and the portion of rentals
representative of the interest factor, (ii) the Company
considers one-third of rental expense to be the amount
representing return on capital, and (iii) fixed charges comprise
total interest expense, including capitalized interest and such
portion of rentals.
5
1,000
6-MOS
DEC-31-1995
JAN-01-1995
JUN-30-1995
254,395
56,463
1,673,832
155,059
1,094,764
4,040,131
7,544,199
3,391,117
8,990,323
3,535,061
435,730
546,974
0
0
3,696,235
8,990,323
5,024,707
5,024,707
2,174,934
2,174,934
534,535
41,871
31,804
1,193,311
352,027
841,284
0
0
0
841,284
1.05
1.04
OTHER EXPENSES CONSIST OF RESEARCH AND DEVELOPMENT EXPENSES
