BINDLEY-WESTERN DOES $481 MIL. SALES IN 1983

Executive Summary

BINDLEY-WESTERN DOES $481 MIL. SALES IN 1983, up 11% from $433 mil. in 1982, the company reported in an interim year-end statement released Feb. 27. The chain whslr. said profit gains outpaced sales despite substantial inventory purchases at the end of 1983 and an unfavorable comparison to a reduced tax rate in 1982. Chairman William Bindley pointed out "that due to substantial investment tax credits in December, 1982, the company's fourth quarter 1982 effective tax rate was 31% compared to 47% in the 1983 quarter." Inventory purchases at the end of the year "had the effect of reducing 1983 fourth quarter income by 8› per share" or approximately $255,000. Bindley maintained that "the additional gross profit to be realized in 1984 from the December purchases would more than off-set the LIFO valuation impact on 1983 income." Bindley said that "aggressive sales efforts are producing better than anticipated results." The firm says "two new major customers" are beginning to use the whslr.