<BREAKFAST WITH THE FOOL>

Wednesday, July 21, 1999

"Before everything else, getting ready is the secret to success." -- Henry Ford

Latest Market Numbers

J&J to Acquire Centocor

Healthcare products company Johnson & Johnson (NYSE: JNJ) this morning announced it will acquire biotech firm Centocor (Nasdaq: CNTO) in an all-stock deal valued at $4.9 billion. Centocor will keep its name and management, and it will be a free-standing Johnson & Johnson company. The deal comes more than two months after earlier talks stalled when the two sides couldn't agree on key terms such as price.

Centocor shareholders will get $61 in J&J shares for each Centocor share, provided that J&J's average trading price remains between $85.71 and $104.76. J&J closed at $96 7/16 yesterday. The actual ratio of the share swap will be adjusted based on J&J's stock price, though Centocor shareholders can basically expect to get at the very least $52 a share and at the most $69.18. Centocor closed at $49 1/2 yesterday.

Johnson & Johnson, known for products such as Tylenol, Band Aid, Neutrogena, and baby oil, is trying to focus more on drugs to boost revenue growth and earnings. By buying Centocor, J&J gets its hands on Centocor's drug Remicade, which is approved for treating Crohn's disease but is expected also to be approved for rheumatoid arthritis, and its top seller, ReoPro, an anti-clotting drug Centocor co-markets with Eli Lilly (NYSE: LLY).

For Centocor, becoming part of the much-larger J&J empire would give it greater marketing muscle, not to mention deeper pockets for research and development (R&D) efforts. Last year, Centocor's revenues totaled $338.1 million compared with J&J's $23.66 billion.
Separately, Centocor reported second-quarter earnings of $0.13 a share, up from $0.03 a year ago and right in line with estimates.

Earnings Galore

(Quarterly earnings per share versus that of the same year-earlier quarter and compared with analysts' mean estimate. Earnings exclude one-time charges and gains.)

Allstate (NYSE: ALL) -- Q2 EPS: $0.75 (operating income) vs. $0.74 last year; estimate: $0.79

Amresco
(Nasdaq: AMMB) -- Q2 EPS: $0.20 vs. $0.45 last year; estimate: $0.28

Bell Atlantic
(NYSE: BEL) -- Q2 EPS: $0.75 vs. $0.68 last year; estimate: $0.75

Boston Scientific
(NYSE: BSX) -- Q2 EPS: $0.27 vs. $0.17 last year; estimate: $0.26

Colgate-Palmolive
(NYSE: CL) -- Q2 EPS: $0.36 vs. $0.31 last year; estimate: $0.34

Eastman Kodak
(NYSE: EK) -- Q2 EPS: $1.52 vs. $1.38 last year; estimate: $1.51

Eli Lilly & Co. (NYSE: LLY) -- Q2 EPS: $0.52 vs. $0.44 last year; estimate: $0.51

EMC Corp.
(NYSE: EMC) -- Q2 EPS: $0.27 vs. $0.18 last year (split-adjusted); estimate: $0.24

Exxon
(NYSE: XON) -- Q2 EPS: $0.49 vs. $0.65 last year; estimate: $0.49

Fort James
(NYSE: FJ) -- Q2 EPS: $0.62 (before unusual items) vs. $0.63 last year; estimate: $0.63

Georgia-Pacific (NYSE: GP) -- Q2 EPS: $1.20 vs. $0.16 last year; estimate: $1.06

Honeywell
(NYSE: HON) -- Q2 EPS: $1.09 vs. $0.95 last year; estimate: $1.07

ITT Industries
(NYSE: IIN) -- Q2 EPS: $$0.70 (continuing operations) vs. $0.30 last year; estimate: $0.67

Jostens
(NYSE: JOS) -- Q2 EPS: $1.14 vs. $1.01 last year; estimate: $1.11

Knight/Trimark Group
(Nasdaq: NITE) -- Q2 EPS: $0.43 vs. $0.14 (pro forma) last year; estimate: $0.35

LSI Logic
(NYSE: LSI) -- Q2 EPS: $0.21 (before charges) vs. $0.23 last year; estimate: $0.18

M.A. Hanna
(NYSE: MAH) -- Q2 EPS: $0.23 vs. $0.29 last year; estimate: $0.22

Micromuse
(Nasdaq: MUSE) -- fiscal Q3 EPS: $0.10 (before tax credit) vs. $0.01 last year; estimate: $0.08

PepsiCo
(NYSE: PEP) -- Q2 EPS: $0.31 (before gain) vs. $0.28 last year; estimate: $0.29

UAL Corp. (NYSE: UAL) -- Q2 EPS: $2.86 (before one-time items) vs. $3.24 last year; estimate: $2.66

uBid
(Nasdaq: UBID) -- Q2 EPS: $0.46 loss (before charges) vs. $0.14 loss last year; estimate: $0.49 loss

More Foolishness

Check out the one millionth post on the Fool's message boards... The Rule Breaker Portfolio continues its contemplation of the possibility of an AOL-Excite@Home merger... Meanwhile, the Rule Maker Portfolio marvels at Microsoft's results.

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Yi-Hsin Chang (TMF Puck), Writer
Jennifer Silber (TMF Amused), Editor