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Biotech / Medical : ICN Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Tom Barnum who wrote (804)	4/1/1998 1:53:00 PM
From: L.A.	Respond to of 1029

THE DEVALUE OF THE DINAR WILL BE A NON CASH CHARGE TO THE SECOND QUARTER EARNINGS I'M SURE THE COMPANY WILL TAKE ACTION TO REDUCE THE IMPACT, PROBABLY A PRICE INCREASE. L.A.

To: Tom Barnum who wrote (804)	4/1/1998 3:34:00 PM
From: Carl Wysocki	Respond to of 1029

Maybe, someone can explain this "non-cash charge" to me. Sure, all charges are non cash, but I fail to see how this doesn't reduce cash flow. Could be though, that all cash-type assets are fully hedged, and only fixed assets are impacted, which then makes sense. Can't tell from the financial details whether that's the case or not. All I know is that any receivables, for example, are worth a less today than yesterday, and that does affect future cash flows, unless there are offsetting liabilities. I seem to recall that ICN weathered the last devaluation pretty sucessfully, but I also seem to recall the stock got clobbered. I think they were able to recover all effects via pricing, which is probably the case this time, so the earnings impact should only last one or 2 quarters, or so, we hope. Carl