J&J Sales, Profit Climb in Year
on & Johnson here announced 1994 sales of $15.73 billion, up 11.3% over 1993. The company also said its earnings per share rose 13.9% to $3.12 for the year, compared with $2.74 for 1993.
Consolidated net earnings for the year were $2.01 billion, an increase of 12.3% over $1.79 billion in 1993. Ralph S. Larsen, chairman and chief executive officer, said in a release that 1994 marked the first year J&J's earnings reached the $2 billion mark. He said nearly all the company's sales increase came from "strong unit volume growth." Fourth-quarter sales were $4.09 billion, up 15.8% over the fourth-quarter 1993 sales of $3.53 billion, J&J reported. Earnings per share for the fourth quarter rose 13.5% to 59 cents, from 52 cents in the fourth quarter of 1993.
Also during the fourth quarter, J&J said its consolidated earnings rose 23.7% to a pretax figure of $470 million, from $380 million in the fourth quarter of 1993. Net earnings, although unfavorably affected by a higher effective tax rate when compared with the same period in 1993, still rose 12.8%, J&J reported.
Glaxo Offers to Buy Wellcome
LONDON -- In a move that would make it the world's largest drug manufacturer, Glaxo PLC here began an effort to purchase Wellcome PLC for $14 billion late last month.
According to press reports, Glaxo's bid has centered on purchasing shares held by the Wellcome Trust, a charity which owns 39.5% of the company. Wellcome executives reportedly are trying to convince the trust not to commit to Glaxo's bid, in hopes of receiving a better offer.
Glaxo said that if completed, the two merged companies, which would be called Glaxo Wellcome PLC, would have a combined worldwide market share of 5.3%.
Glaxo cited rapid change in the pharmaceuticals industry as a major reason for making the offer and added the combined companies would have a "strong position in a consolidating global industry."
"Wellcome shareholders are being offered full value as well as the opportunity to participate in a world-leading pharmaceutical group," said Sir Richard Sykes, deputy chairman and chief executive of Glaxo, in a release.
Wellcome responded in a release that its board "is evaluating all available options for the company" before recommending a course of action for its shareholders.