Mallinckrodt to sell industrial unit

February 4, 1998

Mallinckrodt executives are looking to reposition the firm to focus solely on its healthcare business, according to an announcement made in late January by the St. Louis-based company. The firm is exploring the divestiture of its industrial specialty

Mallinckrodt executives are looking to reposition the firm to focus solely on its healthcare business, according to an announcement made in late January by the St. Louis-based company. The firm is exploring the divestiture of its industrial specialty chemicals business, and is also actively looking to sell a Nellcor Puritan Bennett business that manufactures oxygen equipment, passenger service units, and video systems for the aerospace industry. Mallinckrodt bought Nellcor last year (SCAN 10/1/97).

In other news, for its 1998 fiscal second quarter (end-December), Mallinckrodt had net sales of $656.2 million, up 45% from the $453.1 million reported a year ago, thanks to the Nellcor acquisition. Earnings from continuing operations before charges related to the Nellcor buy were $24.4 million. The company had posted earnings from continuing operations of $39.1 million in its 1997 fiscal second quarter.

After acquisition- and divestiture-related items were included, Mallinckrodt realized a net loss of $4.7 million. Net income for the same period last year was $43.5 million. Operating earnings in the firm's healthcare segment dipped 5% from the same period last year, a decline attributed primarily to pricing drops in imaging agents.

Finally, Raymond Larkin has resigned from his position as executive vice president of Mallinckrodt and president and CEO of Nellcor Puritan Bennett to pursue other interests. Larkin's last day with Mallinckrodt will be March 31.