Bay Shore, N.Y. In an attempt to rebound from its current financial woes, Graham-Field plans sweeping changes to the company as it moves through Chapter 11 bankruptcy proceedings.

"Operating under Chapter 11 protection will enable the company to restructure, become more efficient and provide better value to its customers, suppliers and employees," said David Hilton, president and chief executive officer. The company, which has suffered financial downturns and a steady stream of top personnel resignations, filed for bankruptcy protection in late December.

"During the reorganization process, the company will examine its core competencies to ensure that the size of our infrastructure is appropriate for the operating requirements of the organization," Hilton said. "All areas of the company are being evaluated for their contribution toward the company's going-forward strategy."

In addition to restructuring, Hilton said Graham-Field will discontinue manufacturing certain "non-core" products. This, he said, will enable it to strengthen its focus on its stronger brand names.

"It is expected that we will further reduce the company's product line," Hilton said. "By focusing the company on a core product line, we anticipate a reduction in duplication and a significant increase in service throughout our marketing channels." -R.P.

St. Louis Mallinckrodt Inc. recorded net income of $46.8 million, or 67 cents a share, for the second quarter ended Dec. 31, compared with $35.1 million, or 49 cents a share, for the same period the previous year. For the six-month period, the company reported net earnings of $84.5 million, or $1.20 a share, compared with $89.4 million, or $1.23 a share, a year ago.

"Strong double-digit sales growth of pulse oximetry coupled with growth from new products in the alternate care business drove 7 percent top-line growth for the respiratory segment for the quarter," said Ray Holman, Mallinckrodt chairman and chief executive officer. "Sales of the pharmaceuticals segment grew 16 percent in the quarter because of continued strong demand for bulk and dosage narcotics."

In addition to announcing its financial results, Mallinckrodt said it will move its critical care ventilator production facilities from Carlsbad, Calif., to Galway, Ireland, resulting in a loss of 250 jobs. The company will also move production of certain oxygen therapy products from Galway to Indianapolis and will end service on selected older and previously discontinued respiratory products.

"All of these actions, as well as ongoing cost improvement programs, are carefully designed to enhance long-term growth and profitability while ensuring achievement of current operating results," said Holman. "Overall, we are pleased with the results for the first half of fiscal 2000." -R.P.