SCHWEIZERHALLE FIRE HIT SANDOZ 1986 PROFITS

  Sandoz AG &lt;SANZ.Z> would
  have reported a percentage rise in net profits "close to double
  figures" rather than the actual two pct had it not been for
  November's warehouse fire, a senior company official said.
      The official, who declined to be identified, told Reuters
  Sandoz had made a substantial addition to reserves to cope with
  the consequences of the accident at Schweizerhalle, which
  caused severe pollution of the Rhine.
      Sandoz today reported without comment a rise in net profits
  to 541 mln francs from the previous 529 mln and a five pct
  increase in dividend to 105 francs per 250 franc nominal share.
      This year began well, with the performance in January and
  February at least equal to the same period last year, the
  official said.
      The company is expected to give fuller details of its
  results at a news conference on April 22.
      Sandoz has insisted that it is adequately insured to cover
  any liability arising from the accident.
      The official said the addition to reserves was to cover the
  "one pct" of claims somehow not covered and any voluntary
  gestures it wanted to compensate for the effects of pollution
  from the fire.
      Sandoz has not given any figure for claims, which have been
  flowing in from Switzerland and other countries bordering the
  Rhine since the accident.
      However, the official said the final figure would be "much
  less than that cited in earlier comments." He gave no further
  details.
      In line with fellow chemical giant Ciba-Geigy &lt;CIGZ.Z>,
  which reported last month, Sandoz profit and turnover were also
  hit by the falling dollar, the official said.
      Sales in local currency terms were up by 14 pct, with
  market share increases in the United States and Japan. But this
  was more than offset by a 15 pct negative foreign exchange
  effect, which produced the reported one pct drop in turnover to
  8.36 billion francs,the Sandoz official said.
      Net profit at Ciba-Geigy dropped by 21 pct to 1.16 billion
  francs, while sales fell by 12 pct to 15.95 billion francs.
      The third major Swiss chemical company, F. Hoffmann-La
  Roche and Co &lt;HOFZ.Z> has not yet reported its results.
  

