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Bergen Brunswig Expects 11% Decline for Year

September 24, 1986

Bergen Brunswig Corp. said it expects to report net income of about $20.5 million for its fiscal year ended Aug. 31, a 11% decline from the net income of $23.3 million the Orange-based company reported a year earlier.

The company attributed the reduction to expenses incurred in expansion, increased interest charges due to additional borrowing and charges for additions to inventory and year-end adjustments.

"The majority of the company's acquisition growth objectives have been accomplished," said Emil P. Martini Jr., chairman and chief executive officer. "Operating earnings are expected to improve during fiscal 1987 as these new operations come on stream and are consolidated."

The company said the most recent results will include a gain of about $9 million from the initial public offering of its Commtron Corp. unit.

Sales for fiscal 1986 are expected to be about $3.1 billion contrasted with sales of about $2.4 billion the prior year.

For the fourth quarter, net income is expected to be about $5.7 million on sales of about $800 million compared to net income of $5.9 million on sales of $680 million for the comparable period a year earlier.

The company said it expects to report its earnings in early October.

In addition to distributing pharmaceuticals and medical supplies, Bergen Brunswig also distributes prerecorded videocassettes.

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