EXHIBIT 99.2
SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED INCOME
(DOLLARS IN MILLIONS, EXCEPT EPS)
2004 2003
---- ----
2nd 6
Qtr. Mos.
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th vs vs
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year 2nd 6
$ $ $ $ $ $ $ $ $ $ $ $ $ $ Qtr. Mos.
- - - - - - - - - - - - - - ---- ----
Net Sales 1,963 2,147 4,110 2,082 2,308 4,389 1,998 6,386 1,948 8,334 (7%) (6%)
Cost of Sales 740 790 1,530 658 784 1,442 652 2,094 739 2,833 1% 6%
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ----
Gross Margin 1,223 1,357 2,580 1,424 1,524 2,947 1,346 4,292 1,209 5,501 (11%) (12%)
Total SG&A 914 979 1,893 843 938 1,780 873 2,653 821 3,474 4% 6%
Research &
Development 1/ 372 451 824 322 369 691 382 1,074 395 1,469 22% 19%
Other, Net 36 43 78 13 (4) 8 41 49 10 59 N/M N/M
Special
Charges 2/ 70 42 112 - 20 20 350 370 229 599 N/M N/M
Equity
(Income)
/Loss
from
Cholesterol
Joint
Venture (78) (77) (154) 30 (26) 4 (24) (21) (33) (54) N/M N/M
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ----
(Loss)/Income
before
Income Taxes (91) (81) (173) 216 227 444 (276) 167 (213) (46) N/M N/M
Income Tax
(Benefit)
/Expense (18) (16) (35) 43 45 89 (11) 77 (32) 46 N/M N/M
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---- ----
Net (Loss)/
Income (73) (65) (138) 173 182 355 (265) 90 (181) (92) N/M N/M
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== ====
Diluted (Loss)
/Earnings
per Common
Share (0.05) (0.04) (0.09) 0.12 0.12 0.24 (0.18) 0.06 (0.12) (0.06) N/M N/M
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== ====
Avg. Shares
Outstanding-
Diluted 1,471 1,472 1,471 1,470 1,471 1,471 1,469 1,470 1,470 1,469
Actual Shares
Outstanding 1,472 1,472 1,472 1,469 1,469 1,469 1,469 1,469 1,471 1,471
Ratios To
Net Sales
Net Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales 37.7% 36.8% 37.2% 31.6% 34.0% 32.9% 32.6% 32.8% 37.9% 34.0%
Gross Margin 62.3% 63.2% 62.8% 68.4% 66.0% 67.1% 67.4% 67.2% 62.1% 66.0%
Total SG&A 46.6% 45.6% 46.1% 40.5% 40.6% 40.6% 43.7% 41.5% 42.1% 41.7%
Research &
Development 19.0% 21.0% 20.0% 15.5% 16.0% 15.8% 19.1% 16.8% 20.3% 17.6%
(Loss)/Income
Before
Income Taxes (4.6%) (3.8%) (4.2%) 10.4% 9.8% 10.1% (13.8%) 2.6% (11.0%) (0.6%)
Income Taxes
(Benefit)/
Expense (0.9%) (0.8%) (0.8%) 2.1% 2.0% 2.0% (0.6%) 1.2% (1.6%) 0.5%
Net (Loss)/
Income (3.7%) (3.0%) (3.4%) 8.3% 7.9% 8.1% (13.3%) 1.4% (9.3%) (1.1%)
1/ Research and development in the second quarter 2004 and first six months of
2004 includes an $80 million upfront payment in conjunction with the licensing
from Toyama Chemical Company LTD. of garenoxacin, a quinolone antibiotic in
development.
2/ Special Charges for the second quarter ended June 30, 2004 included $42
million of employee termination costs. Special charges for the six months ended
June 30, 2004 included $86 million of employee termination costs and $26 million
of asset impairment charges primarily related to the company's anticipated exit
from a small European research-and-development facility. Special Charges for
2003 included $20 million of asset impairment charges related to manufacturing
facility assets recorded in the second quarter, the $350 million provision to
increase litigation reserves recorded in the third quarter and $179 million of
employee termination costs, primarily related to the VERP in the United States,
as well as $50 million of asset impairment charges related to certain fixed and
intangible assets recorded in the fourth quarter.
Note: The Company noted that it incurs substantial costs, such as selling,
general and administrative costs, that are not reflected in the "Equity income
from cholesterol joint venture" and are borne by the overall cost structure of
Schering-Plough.
All figures rounded. Totals may not add due to rounding. N/M - not a meaningful
percentage.
1
SCHERING-PLOUGH CORPORATION
CONSOLIDATED SALES
(Dollars in Millions)
2004 2003
---- ----
2nd 6
Qtr. Mos.
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th vs vs
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year 2nd 6
$ $ $ $ $ $ $ $ $ $ $ $ $ $ Qtr. Mos.
- - - - - - - - - - - - - - ---- ----
PRESCRIPTION
PHARM: 1,481 1,644 3,125 1,646 1,871 3,517 1,585 5,101 1,509 6,611 (12%) (11%)
U.S. 411 495 906 643 757 1,401 549 1,950 426 2,376 (35%) (35%)
International 1,070 1,150 2,220 1,003 1,113 2,116 1,035 3,151 1,083 4,235 3% 5%
CONSUMER HEALTH
CARE: 312 317 629 293 266 559 243 802 225 1,026 19% 12%
OTC: 157 150 306 157 135 291 149 441 147 588 11% 5%
OTC Claritin* 117 117 234 129 97 225 111 336 97 432 22% 4%
Other OTC 40 32 72 28 38 66 38 105 50 156 (15%) 8%
FOOT CARE: 76 89 166 62 83 145 80 224 68 292 7% 14%
Sun Care: 79 78 157 74 48 123 14 137 10 146 60% 28%
Animal Health: 170 186 356 143 171 313 170 483 214 697 9% 14%
U.S. 41 36 77 45 49 94 57 150 68 218 (27%) (18%)
International 129 150 279 98 122 220 113 333 146 479 23% 27%
TOTAL
CONSOLIDATED: 1,963 2,147 4,110 2,082 2,308 4,389 1,998 6,386 1,948 8,334 (7%) (6%)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
U.S. 738 827 1,565 965 1,047 2,012 836 2,848 712 3,559 (21%) (22%)
International 1,225 1,320 2,545 1,116 1,261 2,378 1,162 3,539 1,236 4,775 5% 7%
* Includes sales of Claritin in Canada.
Notes: Certain prior period amounts have been reclassified to conform to the
current year presentation.
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
2
SCHERING-PLOUGH CORPORATION
PRESCRIPTION PHARMACEUTICAL SALES - KEY PRODUCT SALES
(Dollars in Millions)
GLOBAL PRESCRIPTION PHARM U.S. INTERNATIONAL
------------------------- ------------------------ -------------------------------
2004 2003 2004 2003 2004 2003
2nd 2nd 2nd Qtr. 2nd 2nd 2nd Qtr. 2nd 2nd 2nd Qtr.
Qtr. Qtr. vs Qtr. Qtr. vs Qtr. Qtr. vs
$ $ 2nd Qtr. $ $ 2nd Qtr. $ $ 2nd Qtr.
- - -------- - - -------- - - --------
PRESCRIPTION PHARM: 1,644 1,871 (12%) 495 757 (35%) 1,150 1,113 3%
Clarinex / Aerius 226 219 3% 126 144 (13%) 100 75 34%
Remicade 182 126 44% -- -- -- 182 126 44%
Nasonex 156 175 (11%) 85 115 (26%) 71 60 18%
PEG-Intron 144 247 (42%) 50 146 (66%) 94 101 (7%)
Temodar 102 87 17% 45 48 (6%) 57 40 44%
Intron A 89 125 (29%) 33 54 (39%) 56 71 (21%)
Rebetol 88 196 (55%) 23 102 (78%) 65 94 (31%)
Claritin Rx * 82 90 (9%) -- -- -- 82 90 (9%)
Integrilin 78 92 (15%) 72 87 (17%) 6 5 26%
Subutex 47 36 31% -- -- -- 47 36 31%
Elocon 46 41 13% 12 11 5% 34 30 16%
Caelyx 35 26 34% -- -- -- 35 26 34%
* Includes international sales of Claritin Rx only. Canadian sales of Claritin
are now reported in the OTC Claritin line within Consumer Health Care. Prior
periods have been reclassified accordingly.
Notes: Global cholesterol franchise sales, which include Zetia and Vytorin,
totaled $247 million in the 2004 second quarter compared with sales of
$123 million in 2003. U.S. sales of Zetia were $212 million in the 2004
second quarter.
Certain prior period amounts have been reclassified to conform to the
current year presentation.
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
3
SCHERING-PLOUGH CORPORATION
GLOBAL PRESCRIPTION PHARMACEUTICAL SALES - KEY PRODUCT SALES
(Dollars in Millions)
2004 2003
---- ----
2nd 6
Qtr. Mos.
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th vs vs
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year 2nd 6
$ $ $ $ $ $ $ $ $ $ $ $ $ $ Qtr. Mos.
- - - - - - - - - - - - - - ---- ----
GLOBAL PRESCRIPTION
PHARM: 1,481 1,644 3,125 1,646 1,871 3,517 1,585 5,101 1,509 6,611 (12%) (11%)
Clarinex / Aerius 130 226 356 173 219 392 169 561 133 694 3% (9%)
Remicade 165 182 347 114 126 240 142 382 159 540 44% 45%
Nasonex 140 156 296 79 175 254 114 368 132 500 (11%) 17%
PEG-Intron 148 144 293 221 247 469 172 641 162 802 (42%) (38%)
Temodar 86 102 188 59 87 146 90 237 87 324 17% 28%
Intron A 69 89 158 74 125 199 103 302 107 409 (29%) (21%)
Rebetol 99 88 187 219 196 415 125 540 100 639 (55%) (55%)
Claritin Rx * 91 82 173 89 90 179 68 247 81 328 (9%) (3%)
Integrilin 73 78 151 89 92 181 79 260 46 306 (15%) (16%)
Subutex 44 47 91 31 36 66 37 103 41 144 31% 37%
Elocon 38 46 84 39 41 80 41 121 33 154 13% 6%
Caelyx 34 35 70 22 26 49 30 78 32 111 34% 43%
* Includes international sales of Claritin Rx only. Canadian sales of Claritin
are now reported in the OTC Claritin line within Consumer Health Care. Prior
periods have been reclassified accordingly.
Notes: Global cholesterol franchise sales, which include Zetia and Vytorin,
totaled $247 million in the 2004 second quarter and $436 million
year-to-date compared with sales of $123 million and $170 million,
respectively, in 2003. U.S. sales of Zetia were $212 million in the 2004
second quarter.
Certain prior period amounts have been reclassified to conform to the
current year presentation.
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
4
SCHERING-PLOUGH CORPORATION
U.S. PHARMACEUTICAL SALES - KEY PRODUCT SALES
(Dollars in Millions)
2004 2003
---- ----
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 2nd Qtr. 6 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 2nd Qtr. 6 Mos.
- - - - - - - - - - - - - - -------- ------
TOTAL U.S. PHARM: 411 495 906 643 757 1,401 549 1,950 426 2,376 (35%) (35%)
Clarinex / Aerius 69 126 195 133 144 277 128 405 93 498 (13%) (30%)
Nasonex 82 85 167 34 115 149 74 223 78 301 (26%) 12%
PEG-Intron 63 50 113 126 146 272 85 358 76 434 (66%) (58%)
Temodar 37 45 82 26 48 73 47 120 39 159 (6%) 12%
Intron A 18 33 51 15 54 69 38 107 37 144 (39%) (27%)
Rebetol 31 23 53 136 102 238 50 288 18 306 (78%) (78%)
Integrilin 68 72 139 84 87 171 73 244 40 284 (17%) (18%)
Elocon 7 12 19 10 11 21 12 33 3 37 5% (11%)
Notes: U.S. sales of Zetia were $212 million in the 2004 second quarter and $381
million year-to-date.
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
5
SCHERING-PLOUGH CORPORATION
INTERNATIONAL PHARMACEUTICAL SALES - KEY PRODUCT SALES
(Dollars in Millions)
2004 2003
---- ----
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 2nd Qtr. 6 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 2nd Qtr. 6 Mos.
- - - - - - - - - - - - - - -------- ------
TOTAL INTERNATIONAL
PHARM: 1,070 1,150 2,220 1,003 1,113 2,116 1,035 3,151 1,083 4,235 3% 5%
Clarinex / Aerius 61 100 161 41 75 116 41 157 40 196 34% 39%
Remicade 165 182 347 114 126 240 142 382 159 540 44% 45%
Nasonex 58 71 129 44 60 105 39 144 55 199 18% 23%
PEG-Intron 85 94 179 95 101 196 87 283 85 368 (7%) (9%)
Temodar 49 57 106 34 40 73 44 117 48 165 44% 45%
Intron A 51 56 107 59 71 130 65 195 70 265 (21%) (18%)
Rebetol 68 65 133 83 94 177 75 252 81 333 (31%) (25%)
Claritin Rx 91 82 173 89 90 179 68 247 81 328 (9%) (3%)
Integrilin 5 6 12 5 5 10 6 16 6 22 26% 18%
Subutex 44 47 91 31 36 66 37 103 41 144 31% 37%
Elocon 31 34 65 29 30 58 29 88 30 117 16% 12%
Caelyx 34 35 70 22 26 49 30 78 32 111 34% 43%
Notes: International cholesterol franchise sales, which include Zetia and
Vytorin, totaled $35 million in the 2004 second quarter and $55 million
year-to-date.
Certain prior period amounts have been reclassified to conform to the
current year presentation.
All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
6
MISCELLANEOUS DATA
(Dollars in Millions)
2004 2003
---- ----
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $ $ $ $ $ $ $ $
- - - - - - - - - - - - - -
GEOGRAPHIC SALES
U.S. 738 827 1,565 965 1,047 2,012 836 2,848 712 3,559
EUROPE AND CANADA 874 972 1,846 777 935 1,711 849 2,560 849 3,410
LATIN AMERICA 174 182 356 171 163 334 184 517 199 716
PACIFIC AREA AND ASIA 177 166 343 169 163 332 129 461 188 649
CONSOLIDATED SALES 1,963 2,147 4,110 2,082 2,308 4,389 1,998 6,386 1,948 8,334
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
2004 2003
---- ----
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $ $ $ $ $ $ $ $
- - - - - - - - - - - - - -
CONSOLIDATED SALES
GROWTH RATES:
As Reported (6%) (7%) (6%) (19%) (19%) (19%) (17%) (18%) (18%) (18%)
Excluding Exchange (12%) (10%) (11%) (23%) (24%) (24%) (21%) (23%) (24%) (23%)
OTHER, NET
Interest Income $14 $15 $29 $13 $15 $28 $9 $37 $20 $57
Interest Expense (48) (43) (91) (13) (12) (25) (24) (49) (32) (81)
FX Gains/(Losses) (1) (4) (4) (1) - (1) 1 (1) - (1)
Other Income/(Expense) (1) (11) (12) (12) 1 (10) (27) (36) 2 (34)
--- ---- ---- ---- --- ---- ---- ---- ---- ----
Total - Other, Net ($36) ($43) ($78) ($13) $4 ($8) ($41) ($49) ($10) ($59)
EFFECTIVE TAX RATE 20% 20% 20% 20% 20% 20% ** ** 15% **
** In the 2003 third quarter, the company reduced its estimate of the 2003
annual effective tax rate to 15% from 20% on income, excluding the $350 million
non-tax deductible provision to increase litigation reserves.
Note: All figures rounded. Totals may not add due to rounding. N/M - not a
meaningful percentage.
Alex Kelly 908-298-7450
Lisa W. DeBerardine 908-298-7437
Janet M. Barth 908-298-7417
7