Exhibit 99.2
SCHERING-PLOUGH CORPORATION
STATEMENTS OF CONSOLIDATED INCOME
(DOLLARS IN MILLIONS, EXCEPT EPS)
2004
----------------------------------------------------------
1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $
----- ----- ----- ----- ----- ---- ----
Net Sales 1,963 2,147 4,110 1,978 6,088
Cost of Sales 740 790 1,530 711 2,241
----- ----- ----- ----- -----
Gross Margin 1,223 1,357 2,580 1,267 3,847
Total SG&A 914 979 1,893 892 2,785
Research & Development 1/ 372 451 824 378 1,201
Other, Net 36 43 78 34 112
Special Charges 2/ 70 42 112 26 138
Equity (Income)/Loss from Cholesterol Joint Venture (78) (77) (154) (95) (249)
----- ----- ----- ----- -----
(Loss)/Income before Income Taxes (91) (81) (173) 32 (140)
Income Tax (Benefit)/Expense (18) (16) (35) 6 (28)
----- ----- ----- ----- -----
Net (Loss)/Income (73) (65) (138) 26 (112)
===== ===== ===== ===== =====
Dividends on Preferred Shares - - - 12 12
Net (Loss)/Income Available to Common Shareholders (73) (65) (138) 14 (124)
===== ===== ===== ===== =====
Diluted (Loss)/Earnings per Common Share (0.05) (0.04) (0.09) 0.01 (0.08)
===== ===== ===== ===== =====
Avg. Shares Outstanding- Diluted 1,471 1,472 1,471 1,475 1,472
Actual Shares Outstanding 1,472 1,472 1,472 1,472 1,472
Ratios To Net Sales
Net Sales 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales 37.7% 36.8% 37.2% 35.9% 36.8%
Gross Margin 62.3% 63.2% 62.8% 64.1% 63.2%
Total SG&A 46.6% 45.6% 46.1% 45.1% 45.7%
Research & Development 19.0% 21.0% 20.0% 19.1% 19.7%
(Loss)/Income Before Income Taxes (4.6%) (3.8%) (4.2%) 1.6% (2.3%)
Income Taxes (Benefit)/Expense (0.9%) (0.8%) (0.8%) 0.3% (0.5%)
Net (Loss)/Income (3.7%) (3.0%) (3.4%) 1.3% (1.8%)
2003
----------------------------------------------------
1st 2nd 6 3rd 9 4th 3rd Qtr. 9 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ 3rd Qtr. 9 Mos.
----- ----- ----- ----- ----- ----- ----- -------- ------
Net Sales 2,082 2,308 4,389 1,998 6,386 1,948 8,334 (1%) (5%)
Cost of Sales 658 784 1,442 652 2,094 739 2,833 9% 7%
----- ----- ----- ----- ----- ----- ----- --- ---
Gross Margin 1,424 1,524 2,947 1,346 4,292 1,209 5,501 (6%) (10%)
Total SG&A 843 938 1,780 873 2,653 821 3,474 2% 5%
Research & Development 1/ 322 369 691 382 1,074 395 1,469 (1%) 12%
Other, Net 13 (4) 8 41 49 10 59 (16%) N/M
Special Charges 2/ - 20 20 350 370 229 599 (93%) (63%)
Equity (Income)/Loss from Cholesterol Joint Venture 30 (26) 4 (24) (21) (33) (54) N/M N/M
----- ----- ----- ----- ----- ----- ----- --- ---
(Loss)/Income before Income Taxes 216 227 444 (276) 167 (213) (46) N/M N/M
Income Tax (Benefit)/Expense 43 45 89 (11) 77 (32) 46 N/M N/M
----- ----- ----- ----- ----- ----- ----- --- ---
Net (Loss)/Income 173 182 355 (265) 90 (181) (92) N/M N/M
===== ===== ===== ===== ===== ===== ===== === ===
Dividends on Preferred Shares - - - - - - - N/M N/M
Net (Loss)/Income Available to Common Shareholders 173 182 355 (265) 90 (181) (92) N/M N/M
===== ===== ===== ===== ===== ===== =====
Diluted (Loss)/Earnings per Common Share 0.12 0.12 0.24 (0.18) 0.06 (0.12) (0.06) N/M N/M
===== ===== ===== ===== ===== ===== ===== === ===
Avg. Shares Outstanding- Diluted 1,470 1,471 1,471 1,469 1,470 1,470 1,469
Actual Shares Outstanding 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%
Cost of Sales 31.6% 34.0% 32.9% 32.6% 32.8% 37.9% 34.0%
Gross Margin 68.4% 66.0% 67.1% 67.4% 67.2% 62.1% 66.0%
Total SG&A 40.5% 40.6% 40.6% 43.7% 41.5% 42.1% 41.7%
Research & Development 15.5% 16.0% 15.8% 19.1% 16.8% 20.3% 17.6%
(Loss)/Income Before Income Taxes 10.4% 9.8% 10.1% (13.8%) 2.6% (11.0%) (0.6%)
Income Taxes (Benefit)/Expense 2.1% 2.0% 2.0% (0.6%) 1.2% (1.6%) 0.5%
Net (Loss)/Income 8.3% 7.9% 8.1% (13.3%) 1.4% (9.3%) (1.1%)
1/ Research and development in the first nine 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 third quarter ended September 30, 2004 consisted
primarily of employee termination costs. Special charges for the nine months
ended September 30, 2004 included $111 million of employee termination costs and
$27 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
---------------------------------------------------
1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $
----- ----- ----- ----- ----- ---- ----
PRESCRIPTION PHARM: 1,481 1,644 3,125 1,556 4,681
U.S. 411 495 906 518 1,424
International 1,070 1,150 2,220 1,037 3,257
CONSUMER HEALTH CARE: 312 317 629 239 868
OTC: 157 150 306 150 456
OTC Claritin * 117 117 234 110 344
Other OTC 40 32 72 41 112
FOOT CARE: 76 89 166 86 252
SUN CARE: 79 78 157 3 160
ANIMAL HEALTH: 170 186 356 183 539
U.S. 41 36 77 56 133
International 129 150 279 127 406
TOTAL CONSOLIDATED: 1,963 2,147 4,110 1,978 6,088
----- ----- ----- ----- -----
U.S. 738 827 1,565 800 2,365
International 1,225 1,320 2,545 1,178 3,723
2003
-----------------------------------------------------
1st 2nd 6 3rd 9 4th 3rd Qtr. 9 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ 3rd Qtr. 9 Mos.
---- ----- ----- ----- ----- ----- ----- -------- ------
PRESCRIPTION PHARM: 1,646 1,871 3,517 1,585 5,101 1,509 6,611 (2%) (8%)
U.S. 643 757 1,401 549 1,950 426 2,376 (6%) (27%)
International 1,003 1,113 2,116 1,035 3,151 1,083 4,235 0% 3%
CONSUMER HEALTH CARE: 293 266 559 243 802 225 1,026 (1%) 8%
OTC: 157 135 291 149 441 147 588 1% 3%
OTC Claritin * 129 97 225 111 336 97 432 (1%) 2%
Other OTC 28 38 66 38 105 50 156 5% 7%
FOOT CARE: 62 83 145 80 224 68 292 9% 12%
SUN CARE: 74 48 123 14 137 10 146 (79%) 17%
ANIMAL HEALTH: 143 171 313 170 483 214 697 8% 12%
U.S. 45 49 94 57 150 68 218 0% (11%)
International 98 122 220 113 333 146 479 12% 22%
TOTAL CONSOLIDATED: 2,082 2,308 4,389 1,998 6,386 1,948 8,334 (1%) (5%)
----- ----- ----- ----- ----- ----- -----
U.S. 965 1,047 2,012 836 2,848 712 3,559 (4%) (17%)
International 1,116 1,261 2,378 1,162 3,539 1,236 4,775 1% 5%
* 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
---- ---- ---- ---- ---- ----
3rd 3rd 3rd Qtr. 3rd 3rd 3rd Qtr. 3rd 3rd 3rd Qtr.
Qtr. Qtr. vs Qtr. Qtr. vs Qtr. Qtr. vs
$ $ 3rd Qtr. $ $ 3rd Qtr. $ $ 3rd Qtr.
---- ---- -------- ---- ---- -------- ---- ---- --------
PRESCRIPTION PHARM: 1,556 1,585 (2%) 518 549 (6%) 1,037 1,035 0%
Remicade 188 142 33% -- -- -- 188 142 33%
Clarinex / Aerius 175 169 3% 118 128 (8%) 57 41 39%
Nasonex 153 114 34% 104 74 40% 48 39 23%
PEG-Intron 132 172 (23%) 49 85 (42%) 83 87 (5%)
Temodar 121 90 35% 60 47 29% 61 44 40%
Integrilin 94 79 18% 88 73 20% 5 6 (5%)
Intron A 81 103 (21%) 30 38 (20%) 51 65 (22%)
Claritin Rx * 67 68 (1%) -- -- -- 67 68 (1%)
Rebetol 52 125 (58%) -- 50 (99%) 52 75 (31%)
Subutex 45 37 22% -- -- -- 45 37 22%
Elocon 42 41 2% 12 12 (3%) 31 29 5%
Caelyx 39 30 32% -- -- -- 39 30 32%
* 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 $344 million in the 2004 third quarter compared with sales of
$137 million in 2003. U.S. sales of Zetia/Vytorin were $298 million in
the 2004 third 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
---------------------------------------- ------------------------------------------
1st 2nd 6 3rd 9 4th 1st 2nd 6 3rd 9 4th 3rd Qtr. 9 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 3rd Qtr. 9 Mos.
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- ------
GLOBAL PRESCRIPTION PHARM: 1,481 1,644 3,125 1,556 4,681 1,646 1,871 3,517 1,585 5,101 1,509 6,611 (2%) (8%)
Remicade 165 182 347 188 535 114 126 240 142 382 159 540 33% 40%
Clarinex / Aerius 130 226 356 175 530 173 219 392 169 561 133 694 3% (6%)
Nasonex 140 156 296 153 449 79 175 254 114 368 132 500 34% 22%
PEG-Intron 148 144 293 132 425 221 247 469 172 641 162 802 (23%) (34%)
Temodar 86 102 188 121 309 59 87 146 90 237 87 324 35% 31%
Integrilin 73 78 151 94 245 89 92 181 79 260 46 306 18% (6%)
Intron A 69 89 158 81 239 74 125 199 103 302 107 409 (21%) (21%)
Claritin Rx * 91 82 173 67 240 89 90 179 68 247 81 328 (1%) (3%)
Rebetol 99 88 187 52 239 219 196 415 125 540 100 639 (58%) (56%)
Subutex 44 47 91 45 136 31 36 66 37 103 41 144 22% 32%
Elocon 38 46 84 42 127 39 41 80 41 121 33 154 2% 5%
Caelyx 34 35 70 39 109 22 26 49 30 78 32 111 32% 39%
* 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 $344 million in the 2004 third quarter and $780 million
year-to-date compared with sales of $137 million and $306 million,
respectively, in 2003.
U.S. sales of Zetia/Vytorin were $298 million in the 2004 third 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 3rd Qtr. 9 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 3rd Qtr. 9 Mos.
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- ------
TOTAL U.S. PHARM: 411 495 906 518 1,424 643 757 1,401 549 1,950 426 2,376 (6%) (27%)
Clarinex / Aerius 69 126 195 118 313 133 144 277 128 405 93 498 (8%) (23%)
Nasonex 82 85 167 104 271 34 115 149 74 223 78 301 40% 21%
PEG-Intron 63 50 113 49 163 126 146 272 85 358 76 434 (42%) (54%)
Temodar 37 45 82 60 142 26 48 73 47 120 39 159 29% 18%
Integrilin 68 72 139 88 228 84 87 171 73 244 40 284 20% (7%)
Intron A 18 33 51 30 81 15 54 69 38 107 37 144 (20%) (24%)
Rebetol 31 23 53 - 54 136 102 238 50 288 18 306 (99%) (81%)
Elocon 7 12 19 12 31 10 11 21 12 33 3 37 (3%) (8%)
Notes: U.S. sales of Zetia/Vytorin were $298 million in the 2004 third quarter
and $679 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 3rd Qtr. 9 Mos.
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year vs vs
$ $ $ $ $ $ $ $ $ $ $ $ $ $ 3rd Qtr. 9 Mos.
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------- ------
TOTAL INTERNATIONAL PHARM: 1,070 1,150 2,220 1,037 3,257 1,003 1,113 2,116 1,035 3,151 1,083 4,235 0% 3%
Remicade 165 182 347 188 535 114 126 240 142 382 159 540 33% 40%
Clarinex / Aerius 61 100 161 57 218 41 75 116 41 157 40 196 39% 39%
Nasonex 58 71 129 48 178 44 60 105 39 144 55 199 23% 23%
PEG-Intron 85 94 179 83 262 95 101 196 87 283 85 368 (5%) (7%)
Temodar 49 57 106 61 168 34 40 73 44 117 48 165 40% 43%
Integrilin 5 6 12 5 17 5 5 10 6 16 6 22 (5%) 9%
Intron A 51 56 107 51 158 59 71 130 65 195 70 265 (22%) (19%)
Claritin Rx 91 82 173 67 240 89 90 179 68 247 81 328 (1%) (3%)
Rebetol 68 65 133 52 185 83 94 177 75 252 81 333 (31%) (27%)
Subutex 44 47 91 45 136 31 36 66 37 103 41 144 22% 32%
Elocon 31 34 65 31 96 29 30 58 29 88 30 117 5% 10%
Caelyx 34 35 70 39 109 22 26 49 30 78 32 111 32% 39%
Notes: International cholesterol franchise sales, which include Zetia and
Vytorin, totaled $46 million in the 2004 third quarter and $101 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
-----------------------------------------------------------------
1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $
---- ---- ---- ---- ---- ---- ----
GEOGRAPHIC SALES
U.S. 738 827 1,565 800 2,365
EUROPE AND CANADA 874 972 1,846 820 2,666
LATIN AMERICA 174 182 356 204 560
PACIFIC AREA AND ASIA 177 166 343 154 497
CONSOLIDATED SALES 1,963 2,147 4,110 1,978 6,088
----- ----- ----- ----- -----
2003
---------------------------------------------------------------
1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $
---- ---- ---- ---- ---- ---- ----
GEOGRAPHIC SALES
U.S. 965 1,047 2,012 836 2,848 712 3,559
EUROPE AND CANADA 777 935 1,711 849 2,560 849 3,410
LATIN AMERICA 171 163 334 184 517 199 716
PACIFIC AREA AND ASIA 169 163 332 129 461 188 649
CONSOLIDATED SALES 2,082 2,308 4,389 1,998 6,386 1,948 8,334
----- ----- ----- ----- ----- ----- -----
2004
----------------------------------------------------------------
1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $
---- ---- ---- ---- ---- ---- ----
CONSOLIDATED SALES
GROWTH RATES:
As Reported (6%) (7%) (6%) (1%) (5%)
Excluding Exchange (12%) (10%) (11%) (4%) (9%)
OTHER, NET
Interest Income $ 14 $ 15 $ 29 $ 20 $ 50
Interest Expense (48) (43) (91) (39) (130)
FX Gains/(Losses) (1) (4) (4) 0 (4)
Other Income/(Expense) (1) (11) (12) (15) (28)
------- ------- ------- ------- -------
Total Other, Net ($ 36) ($ 43) ($ 78) ($ 34) ($ 112)
EFFECTIVE TAX RATE 20% 20% 20% 20% 20%
2003
-------------------------------------------------------------------
1st 2nd 6 3rd 9 4th
Qtr. Qtr. Mos. Qtr. Mos. Qtr. Year
$ $ $ $ $ $ $
---- ---- ---- ---- ---- ---- ----
CONSOLIDATED SALES
GROWTH RATES:
As Reported (19%) (19%) (19%) (17%) (18%) (18%) (18%)
Excluding Exchange (23%) (24%) (24%) (21%) (23%) (24%) (23%)
OTHER, NET
Interest Income $ 13 $ 15 $ 28 $ 9 $ 37 $ 20 $ 57
Interest Expense (13) (12) (25) (24) (49) (32) (81)
FX Gains/(Losses) (1) - (1) 1 (1) - (1)
Other Income/(Expense) (12) 1 (10) (27) (36) 2 (34)
------- ------- ------- ------- ------- ------- -------
Total Other, Net ($ 13) $ 4 ($ 8) ($ 41) ($ 49) ($ 10) ($ 59)
EFFECTIVE TAX RATE 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
Janet M. Barth 908-298-7417
7