UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                                  
                                  
                                  
                      Washington, D.C.  20549
                                  
                                  
                                  
                              FORM 8-K
                                  
                                  
                           CURRENT REPORT
                                  
                                  
                                  
               Pursuant to Section 13 or 15(d) of the
                  Securities Exchange Act of 1934
                                  
                                  
                                  
                         September 8, 1995
                                  
                                  
                                  
                                  
                      Mallinckrodt Group Inc.
       (Exact name of registrant as specified in its charter)
                                  
                                  
                                  

           New York                  1-483            36-1263901
(State or other jurisdiction      (Commission      (I.R.S. Employer
of incorporation or organization)  File Number)   Identification No.)
   


 7733 Forsyth Boulevard, St. Louis, MO                63105-1820
(Address of principal executive offices)              (ZIP Code)


Registrant's telephone number,                      (314) 854-5200
   including area code

















<PAGE>
Item 5.  Other Events

Management's Discussion and Analysis and financial information for the
fiscal year ended June 30, 1995 follows:

MALLINCKRODT MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.

OVERVIEW

1995 vs. 1994
-------------


Mallinckrodt's 1995 earnings from continuing operations were $184
million, or $2.37 per share.  These results, compared with 1994
earnings from continuing operations, excluding a restructuring charge
and minor non-recurring adjustments, were up 13 percent.

Net earnings for 1995 were $180 million, or $2.32 per share, compared
with $104 million, or $1.33 per share, in 1994.  Included in the prior
year results was an after-tax restructuring charge totaling $59
million, or $.76 per share.

Net sales increased 14 percent to $2.2 billion, compared to $1.9
billion last year.  Operating earnings for 1995 were $329 million, up
15 percent over comparable 1994 results excluding the restructuring
charge.  Each of Mallinckrodt's three businesses contributed to sales
and earnings growth in 1995.  

Restructuring charges are discussed in the business sections which
follow, and in Note 1 of Notes to Consolidated Financial Statements
(Notes). Charges for discontinued operations are discussed in Note 1
of the Notes.

1994 vs. 1993
-------------

Before a restructuring charge Mallinckrodt's 1994 earnings from
continuing operations were $166 million, or $2.14 per share.
Comparable 1993 earnings from continuing operations were $128 million,
or $1.65 per share. After further excluding favorable 1994 tax
adjustments totaling $3 million, or $.04 per share, from tax law
changes and a 1993 non-recurring corporate expense charge of $3
million after taxes, or $.04 per share, 1994 results were 24 percent
higher than those of 1993.

Net earnings for 1994 were $104 million, or $1.33 per share, compared
with a net loss of $200 million, or $2.60 per share, in 1993. Included
in these results were after-tax restructuring charges totaling
$59 million, or $.76 per share, and $242 million, or $3.13 per share,
for 1994 and 1993, respectively. The loss in 1993 also included a
noncash cumulative charge of $81 million, or $1.04 per share, for
adoption of new standards of accounting for income taxes and certain
postretirement/postemployment benefits.

Net sales for 1994 were $1.9 billion, compared with $1.8 billion in
1993. This 8 percent increase was achieved despite slower volume
growth and pricing pressures. Each of Mallinckrodt's three businesses
reported improved operating results for 1994. Operating earnings
before the restructuring charges were $287 million in 1994, compared
with $225 million in 1993.  Excluding the 1993 non-recurring corporate
expense charge, operating earnings were up 24 percent.


<PAGE>
<TABLE>
MALLINCKRODT CHEMICAL
<CAPTION>
                                             Years ended June 30,
                                             --------------------
                                             1995    1994    1993
                                             ----    ----    ----
                                                 (in millions)
<S>                                          <C>     <C>     <C>
Net sales:
  Catalysts, Performance & Lab Chemicals     $318    $212    $183
  Pharmaceutical Specialties                  259     225     212
                                             ----    ----    ----
                                             $577    $437    $395

Operating earnings (loss):
  Ongoing operations                         $ 69    $ 62    $ 46
  Restructuring charge                                        (51)
                                             ----    ----    -----
                                               69      62      (5)
Pre-tax equity in joint venture                25      18      10
                                             ----    ----    -----
Earnings                                     $ 94    $ 80    $  5
                                             ====    ====    ====

Ongoing operating earnings as a 
  percent of sales                           11.9%   14.1%   11.6%
(/TABLE>

1995 vs. 1994
-------------

Mallinckrodt Chemical achieved earnings of $94 million, including a
$25 million pre-tax equity-investment share of earnings from
Tastemaker, the flavors joint venture.  This represented a 17 percent
earnings improvement over the prior year.  Net sales increased 32
percent to $577 million.  The 1993 restructuring program was
substantially completed during 1995, with the exit of the
photochemicals business.

Catalysts, performance and lab chemicals made a significant
contribution to 1995 results with a 50 percent increase in sales. 
Results benefited from the acquisition of Catalyst Resources, Inc. in
March 1994 and the reclassification of a small specialty chemical
business to continuing operations.  The acquisition of J.T. Baker in
February 1995 enhanced sales performance, but modestly impaired
operating earnings through normal acquisition accounting adjustments. 
Management expects J.T. Baker to contribute to sales and earnings
growth in 1996.  Worldwide strength in the existing catalysts business
also contributed favorably to the sales and earnings improvements in
1995.

Pharmaceutical specialties sales improved 15 percent.  Continued
strength in sales volume for medicinal narcotics was the main
contributor to the increase.  Higher worldwide acetaminophen (APAP)
sales volume, improved plant performance in Raleigh, North Carolina,
and higher sales in peptides also provided favorable benefits in 1995.

Earnings results for Tastemaker increased 37 percent to $25 million
due to strong worldwide sales growth and continued manufacturing cost
improvements.

1994 vs. 1993
-------------

Mallinckrodt Chemical's 1994 operating earnings of $62 million and an
$18 million pre-tax equity-investment share of earnings from its
Tastemaker flavors joint venture totaled $80 million. Excluding the
1993 restructuring charge, this represented a 42 percent earnings
improvement over 1993. Net sales increased 11 percent to $437 million.
The 1993 restructuring program is producing anticipated results with
the exit of the aromatic flourine intermediates business substantially
completed in 1994.

Catalysts, performance and lab chemicals sales increased 15 percent,
principally from higher sales volume in catalysts and performance
chemicals. Improved plant operations in performance chemicals and
favorable comparisons in restructured businesses also contributed to
higher operating earnings in 1994. 

Pharmaceutical specialties sales increased 6 percent. Contributing
significantly to improved operating results were higher worldwide
medicinal narcotics sales primarily due to increased sales volume and
improved medicinal narcotics plant operations. Results for 1994 were
negatively affected by a scheduled Raleigh, North Carolina, plant
maintenance shutdown in the first quarter, additional investment in
the peptides business and flat APAP worldwide sales compared with
1993.

The Tastemaker flavors joint venture made a significant contribution
to the 1994 results with a 75 percent increase in earnings due to
strong worldwide growth and efficiencies from manufacturing
consolidation programs completed in 1993.


</TABLE>
<TABLE>
MALLINCKRODT MEDICAL
<CAPTION>
                                          Years ended June 30,
                                          --------------------
                                          1995    1994    1993
                                          ----    ----    ----
                                              (in millions)
<S>                                       <C>     <C>     <C>
Net sales:
  Imaging                                 $  688  $622    $564
  Anesthesiology & Critical Care             324   290     219
                                          ------  ----    ----
                                          $1,012  $912    $783
                                          ======  ====    ====
Operating earnings (loss):
  Ongoing operations                      $  228  $203    $174
  Restructuring charge                             (74)
                                          ------  -----   ----
                                          $  228  $129    $174
                                          ======  =====   ====
Ongoing operating earnings as a
  percent of sales                         22.6%  22.2%   22.3%

</TABLE>
1995 vs. 1994
-------------

Mallinckrodt Medical's operating earnings were $228 million, up 13
percent, excluding the prior year restructuring charge.  Net sales
reached $1.0 billion, an increase of 11 percent from $912 million the
year before.  

Contributing to the improved operating earnings were results of
actions related to the restructuring program begun last year.  Such
actions included reorganization of the U.S. sales structure and non-
sales related functions and management processes, relocation costs for
manufacturing operations and a workforce reduction of approximately
600 positions, of which 500 was contemplated in the 1994 restructure
plan.  The restructuring program is on track and is producing
anticipated results.  Annual pre-tax savings from the restructuring
will be approximately $40 million, with about $11 million achieved in
1995 and the rest to be achieved in 1996.  Pre-tax cash expenditures
should approximate the original estimate of $65 million.

Imaging sales increased 11 percent, benefiting principally from higher
worldwide sales volume of the X-ray contrast medium Optiray*,
partially offset by pricing pressures in the U.S.  Increased U.S.
sales volume of TechneScan MAG3*, the introduction of OctreoScan* and
higher sales of nuclear medicine products in Europe due to growth in
existing markets, also contributed to the improved results.  Albunex*
was introduced through a controlled launch in 1995 giving Medical the
first ultrasound contrast media product in the U.S. market.  Market
penetration has been slower than initial expectations; however,
management expects ultrasound contrast media to be a very significant
growth opportunity for the company.

Anesthesiology and critical care sales were up 11 percent for the
year, boosted by the September 1994 acquisition of DAR S.p.A., higher
anesthesia product sales in Europe and Japan and increased sales
volume of hemoglobin testing products in the U.S. and Europe. 
Management expects the June 1995 acquisition of Alton Dean, Inc., a
manufacturer of products that warm sterile intravenous and irrigation
solutions used during and after surgery, to contribute to future
results.

1994 vs. 1993
-------------

Mallinckrodt Medical's 1994 net sales were $912 million and operating
earnings before a restructuring charge were $203 million, both up 16
percent from 1993.

The 1994 pre-tax restructuring charge of $74 million resulted from
fourth quarter decisions made pursuant to efforts conducted to develop
strategies to effectively respond to customer needs and compete in a
market that is changing rapidly as the result of health care reform.
The key components of the charge were reorganization of the current
medical specialty oriented U.S. sales structure into a unified sales
organization divided into geographical districts; reorganization to
reduce, centralize and standardize certain non-sales related functions
and management processes; relocation of the Argyle, New York,
endotracheal tube manufacturing operations to existing plants in
Athlone, Ireland, and Irvine, California, and a new facility under
construction in Juarez, Mexico; and severance costs related to an
associated workforce reduction of approximately 500 employees at
various locations around the world. 

Imaging sales increased 10 percent.  Higher Optiray sales volume in
the U.S., Japan and Europe and increased catheter sales volume were
the primary contributors to the improvement. The earnings effect of
the higher sales was partially offset by higher standard product costs
associated with the new Ireland Ioversol production facility and
pricing pressures related to Optiray.  The Optiray production capacity
expansions underway in 1993 were essentially complete.  Higher sales
volume in the U.S. and Europe associated with thallium and TechneScan
MAG3 were partially offset by unfavorable foreign exchange rates and
price pressures. In June 1994, OctreoScan, a radiopharmaceutical used
to aid diagnosis of certain cancer tumors, received FDA approval. 
Management received approval of Albunex, its ultrasound contrast agent
in August 1994.

Strong results for the anesthesiology and critical care business were
a significant factor in the overall year-to-year comparison. Sales
increased 32 percent. Newly acquired businesses and improved U.S.
sales associated with HemoCue as a result of hemoglobin products
receiving waiver status contributed to the improvement. Operating
earnings increases were partially offset by unfavorable year-to-year
foreign currency effects and amortization of intangibles related to
acquisitions.

<TABLE>
MALLINCKRODT VETERINARY
<CAPTION>
                                             Years ended June 30,
                                             --------------------
                                             1995    1994    1993
                                                 (in millions)
<S>                                          <C>     <C>    <C>
Net sales:
  Animal Health                              $455    $430   $449
  Feed Ingredients                            169     162    169
                                             ----    ----    ----
                                             $624    $592   $618
                                             ====    ====   ====

Operating earnings (loss):
  Ongoing operations                         $ 61    $ 53   $ 40
  Restructuring charge                                (20)  (283)
                                             ----    -----  -----
                                             $ 61    $ 33   $(243)
                                             ====    =====  ======
Ongoing operating earnings as a 
  percent of sales                           9.8%     8.9%   6.5%
</TABLE>

1995 vs. 1994
-------------

Mallinckrodt Veterinary's operating earnings were $61 million, up 16
percent, excluding the prior year restructuring charge.  Net sales
were $624 million, up 5 percent compared to $592 million the prior
year.  Contributing to the improved operating earnings were improved
sales volumes in Europe, favorable currency effects, principally in
Europe and Latin America, and the favorable impacts of actions related
to the restructuring program begun in 1993, which included various
cost control measures, plant closures and a workforce reduction of
approximately 1,000 employees.

Animal health sales increased 6 percent for the year.  Sales volume
growth was highest in Europe due to increases across all major product
lines.  Sales in Asia improved primarily from higher volumes of
biological products.

Feed ingredients sales were up 4 percent compared to the prior year,
due to strong volume gains and favorable price variances in the fourth
quarter.

Veterinary will build on the strength of its recently completed
management team to focus on future growth and earnings improvement.

1994 vs. 1993
-------------

Mallinckrodt Veterinary's 1994 operating earnings of $33 million
included a pre-tax restructuring charge of $20 million to adjust a
1993 provision associated with the decision to discontinue development
of porcine somatotropin (PST) in May 1993. This adjustment effectively
removed all remaining PST valuation risk.

Excluding restructuring charges in both years, Mallinckrodt
Veterinary's 1994 operating earnings increased 31 percent compared to
1993 on a sales decline of 4 percent. Improved operating earnings
resulted from actions related to the restructuring program begun in
1993, which included various cost control measures, plant closures and
a workforce reduction of approximately 1,000 employees.  Lower sales
resulted primarily from global product rationalization programs
designed to eliminate low margin products and from unfavorable
currency translation effects.

Animal health sales for 1994 decreased 4 percent.  Product
rationalization programs, biological supply and production problems,
lower volumes of companion animal vaccine sales in North America and
unfavorable currency translation effects were the primary reasons for
the decrease.  Partially offsetting the decrease were strong sales of
parasiticides in Europe, higher sales volume in Brazil resulting from
expanded distribution rights and improved foot and mouth disease
vaccine sales, increased sales volumes in Latin America and increased
sales of growth promotants in North America. 

Feed ingredients sales declined 4 percent from 1993 due to price
deterioration on lower U.S. sales volume.


CORPORATE MATTERS

Corporate expense decreased $1 million to $29 million in 1995.  This
favorable variance reflected last year's corporate headquarters
reorganization and relocation.

Interest and other nonoperating income (expense), net declined $4
million in 1995 from 1994.  This decrease related primarily to the
write-down of an investment and hedging losses.

Interest expense increased $16 million in 1995 from increased
borrowings and higher interest rates.

Mallinckrodt's effective tax rate for continuing operations was 37.5
percent in 1995, compared with 38.5 percent in 1994, excluding the
impact of the restructuring charge and statutory rate changes.  See
Note 9 of the Notes for further discussion of income taxes.
 
FINANCIAL CONDITION

Financial resources available to the Company are expected to continue
to be adequate to support existing businesses, fund the remaining cash
expenditures of approximately $139 million for the restructuring
programs and fund new opportunities. Since June 30, 1994, cash and
cash equivalents decreased $26 million. Operations provided
$285 million of cash, while acquisition and capital spending totaled
$272 million, $91 million of which related to the acquisition of J.T.
Baker Inc. and $8 million related to the acquisition of Alton Dean,
Inc.  The Company's current ratio at June 30, 1995, was 1.4:1. Total
debt as a percentage of invested capital was 37 percent.

The Company's Board of Directors previously authorized repurchase of a
total of 42 million shares of its common stock. Twenty-nine million
shares have been purchased under this authorization, .5 million during
the year ended June 30, 1995.

On April 8, 1992, a shelf registration statement was filed with the
Securities and Exchange Commission (SEC) for $250 million of debt
securities.  As of June 30, 1995, $50 million of securities under the
shelf remain unissued.  On February 15, 1995, a shelf registration
statement was filed with the SEC for $250 million of debt securities,
all on terms to be determined at the time of the actual offerings for
sale.  No offerings have occurred.  Net proceeds from the sale of any
debt securities would be used for general corporate purposes, except
as noted in any prospectus supplement.

The Company has a $450 million private-placement commercial paper
program.  This program is backed by $650 million of U.S. lines of
credit, $100 million available until March 1996 and $550 million
available until November 1999.   At June 30, 1995, commercial paper
borrowings and borrowings under the U.S. credit lines amounted to $153
million and $90 million, respectively.  At June 30, 1995, non-U.S.
lines of credit totaling $263 million were also available and
borrowings under these lines were $36 million. The non-U.S. lines can
be cancelled at any time.

Estimated capital spending for the fiscal year ending June 30, 1996,
is approximately $200 million.


OTHER MATTERS

The Company does not consider the present rate of inflation to have a
significant impact on the businesses in which it operates except for
the hyperinflationary effects on the Latin American businesses of
Mallinckrodt Veterinary which are reported in Note 17 of the Notes.

See Note 20 of the Notes for a discussion of environmental matters.

         THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

<PAGE>
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



Report of Independent Auditors . . . . . . . . . . . . . . . 9
Information by Business Segment. . . . . . . . . . . . . . .10
Consolidated Statement of Operations . . . . . . . . . . . .11
Consolidated Balance Sheet . . . . . . . . . . . . . . . . .12
Consolidated Statement of Cash Flows . . . . . . . . . . . .13
Consolidated Statement of Changes in Shareholders' Equity. .14
Notes to Consolidated Financial Statements . . . . . . . . .15
Quarterly Results. . . . . . . . . . . . . . . . . . . . . .29

<PAGE>
REPORT OF INDEPENDENT AUDITORS

To the Shareholders and Board of Directors of Mallinckrodt Group Inc.

We have audited the accompanying consolidated balance sheet of
Mallinckrodt Group Inc. as of June 30, 1995 and 1994, and the related
consolidated statements of operations, changes in shareholders' equity
and cash flows for each of the three years in the period ended
June 30, 1995, appearing on pages 10 through 28. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position
of Mallinckrodt Group Inc. at June 30, 1995 and 1994, and the
consolidated results of its operations and its cash flows for each of
the three years in the period ended June 30, 1995, in conformity with
generally accepted accounting principles. 

As discussed in Significant Accounting Policies to the consolidated
financial statements, in 1993 the Company changed its method of
accounting for income taxes and employee benefits.

Ernst & Young LLP
St. Louis, Missouri
August 8, 1995

<PAGE>
<TABLE>
INFORMATION BY BUSINESS SEGMENT

NET SALES
(In millions)



<CAPTION>
                                                 1995       1994      1993
<S>                                              <C>        <C>       <C>
Mallinckrodt Chemical. . . . . . . . . . . . . . $  576.8   $  436.9  $  395.3
Mallinckrodt Medical . . . . . . . . . . . . . .  1,011.8      912.3     783.1
Mallinckrodt Veterinary. . . . . . . . . . . . .    623.8      591.7     618.1
Intersegment sales . . . . . . . . . . . . . . .      (.3)       (.8)      (.2)
                                                 ---------  --------- ---------
  Consolidated . . . . . . . . . . . . . . . . . $2,212.1    $1,940.1 $1,796.3
</TABLE>

<TABLE>
EARNINGS AND ASSETS
(In millions)
<CAPTION>
                         Earnings (Loss) from
                         Continuing Operations
                          Before Income Taxes            Identifiable Assets
                       ------------------------- --------------------------------
                        1995     1994     1993       1995       1994       1993
                        ----     ----     ----       ----       ----       ----
<S>                    <C>      <C>      <C>       <C>        <C>        <C>
Mallinckrodt Chemical..$ 68.5   $ 61.7   $ (5.4)   $  800.4   $  595.1   $  468.2
Mallinckrodt Medical... 228.2    128.9    174.4     1,185.0    1,102.4      906.5
Mallinckrodt Veterinary  61.0     32.6   (242.5)      745.5      709.5      698.0
Corporate.............. (28.8)   (30.2)   (35.5)      113.3      143.4      188.3
Eliminations...........             .1               (123.6)    (116.9)     (83.4)
                       -------  -------  -------   ---------  ---------  ---------
Operating earnings
  (loss)............... 328.9    193.1   (109.0)
Equity in pre-tax
  earnings of joint
  venture..............  25.3     18.5     10.6
Interest and other
  nonoperating income
  (expense), net.......  (4.2)     (.4)     2.6
Interest expense....... (55.4)   (39.8)   (37.3)
                       -------  -------  -------   ---------  ---------  ---------
Consolidated...........$294.6   $171.4   $(133.1)  $2,720.6   $2,433.5   $2,177.6
                       ======   ======   ========  ========   ========   ========
</TABLE>

<TABLE>
PROPERTY, PLANT AND EQUIPMENT
(In millions)
<CAPTION>

                         Capital Expenditures       Depreciation and Amortization
                       ------------------------    -------------------------------
                       1995      1994      1993      1995      1994        1993
<S>                    <C>      <C>      <C>       <C>        <C>        <C>
Mallinckrodt Chemical..$ 41.8   $ 41.6   $ 46.2    $ 36.7     $ 26.4     $ 28.0
Mallinckrodt Medical...  85.2     99.4     95.0      58.7       47.8       37.1
Mallinckrodt Veterinary  31.2     28.1     45.9      28.0       27.9       28.8
Corporate..............   2.6      3.2      1.2       1.6        2.5        2.2
                       ------   ------   ------    ------     ------     ------
  Consolidated.........$160.8   $172.3   $188.3    $125.0     $104.6     $ 96.1
                       ======   ======   ======    ======     ======
</TABLE>
(See Note 18 of the Notes to Consolidated Financial Statements.)

<PAGE>
<TABLE>
CONSOLIDATED STATEMENT OF OPERATIONS
(In millions except per share amounts)
<CAPTION>
                                                      Years Ended June 30,
                                                  ----------------------------
                                                    1995      1994      1993
                                                  --------  --------  --------
<S>                                               <C>       <C>       <C>
Net sales.........................................$2,212.1  $1,940.1  $1,796.3
Operating costs and expenses:
  Cost of goods sold.............................. 1,215.2   1,037.3     970.6
  Selling, administrative and general expenses....   577.3     522.0     511.2
  Research and development expenses...............    97.8      95.3      95.3
  Restructuring charge............................              93.9     334.1
  Other operating income, net.....................    (7.1)     (1.5)     (5.9)
                                                  --------- --------- ---------
Total operating costs and expenses................ 1,883.2   1,747.0   1,905.3
                                                  --------- --------- ---------
  Operating earnings (loss).......................   328.9     193.1    (109.0)
Equity in pre-tax earnings of joint venture.......    25.3      18.5      10.6
Interest and other nonoperating income (expense),
  net.............................................    (4.2)      (.4)      2.6
Interest expense..................................   (55.4)    (39.8)    (37.3)
                                                  --------- --------- ---------
  Earnings (loss) from continuing operations
    before income taxes...........................   294.6     171.4    (133.1)
Income tax provision (benefit)....................   110.5      64.0     (19.3)
                                                  --------- --------- ---------
  Earnings (loss) from continuing operations......   184.1     107.4    (113.8)
Loss from discontinued operations.................    (3.8)     (3.6)     (6.0)
                                                  --------- --------- ---------
  Earnings (loss) before cumulative effect
    of accounting change..........................   180.3     103.8    (119.8)
Cumulative effect of accounting changes...........                       (80.6)
                                                  --------- --------- ---------
  Net earnings (loss).............................   180.3     103.8    (200.4)
Preferred stock dividends.........................     (.4)      (.4)      (.4)
                                                  --------- --------- ---------
  Available for common shareholders...............$  179.9  $  103.4  $ (200.8)
                                                  ========= ========= =========
(/TABLE)


</TABLE>
<TABLE>
<CAPTION>
EARNINGS (LOSS) PER COMMON SHARE
<S>                                                <C>        <C        <C>
Continuing operations............................. $2.37      $1.38     $(1.48)
Discontinued operations...........................  (.05)      (.05)      (.08)
                                                   ------     ------    -------
Earnings (loss) before cumulative effect of
  accounting changes..............................  2.32       1.33      (1.56)
Cumulative effect of accounting changes...........                       (1.04)
                                                   ------     ------    -------
Net earnings (loss)............................... $2.32      $1.33     $(2.60)
                                                   ======     ======    =======
</TABLE>
(The accompanying Notes are an integral part of the Consolidated Financial
Statements.)
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEET
(In millions except share and per share amounts)
<CAPTION>
                                                                At June 30,
                                                            ------------------
                                                              1995      1994
                                                            --------  --------
<S>                                                         <C>       <C>
ASSETS
Current assets:
  Cash and cash equivalents.................................$   61.7  $   87.9
  Trade receivables, less allowances of $13.5 in 1995 and
    $11.1 in 1994...........................................   414.5     343.6

  Inventories...............................................   433.8     376.9
  Deferred income taxes.....................................    53.1      77.6
  Other current assets......................................    57.0      46.0
                                                            --------  --------
Total current assets........................................ 1,020.1     932.0
Investments and long-term receivables, less allowances
  of $17.0 in 1995 and $13.1 in 1994........................   165.5     147.0
Property, plant and equipment, net.......................... 1,005.6     863.2
Intangible assets...........................................   528.7     489.3
Deferred income taxes.......................................      .7       2.0
                                                            --------  --------
Total assets................................................$2,720.6  $2,433.5
                                                            ========  =========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Short-term debt...........................................$  197.5  $  147.8
  Accounts payable..........................................   191.0     139.4
  Accrued liabilities.......................................   349.4     356.0
  Income taxes payable......................................     7.7      25.4
  Deferred income taxes.....................................     2.7       2.1
                                                            --------  --------
Total current liabilities...................................   748.3     670.7
Long-term debt, less current maturities.....................   501.5     522.0
Deferred income taxes.......................................    76.8      36.6
Postretirement benefits.....................................   142.7     124.7
Other noncurrent liabilities and deferred credits...........    79.8      63.6
                                                            --------  --------
Total liabilities........................................... 1,549.1   1,417.6
                                                            --------  --------
Shareholders' equity:
  4 Percent cumulative preferred stock......................    11.0      11.0
  Common stock, par value $1, authorized 300,000,000
    shares; issued 87,116,289 shares in 1995 and 1994.......    87.1      87.1
  Capital in excess of par value............................   274.1     268.2
  Reinvested earnings.......................................   984.5     846.4
  Foreign currency translation..............................    (9.3)    (34.2)
  Treasury stock, at cost...................................  (175.9)   (162.6)
                                                             -------- ---------
Total shareholders' equity..................................  1,171.5  1,015.9
                                                             -------- ---------
Total liabilities and shareholders' equity.................. $2,720.6 $2,433.5
                                                             ======== ========
</TABLE>

(The accompanying Notes are an integral part of the Consolidated Financial
Statements.)
<PAGE>
<TABLE>
CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
<CAPTION>
                                                       Years ended June 30,
                                                   ---------------------------
                                                     1995      1994     1993
                                                   -------   -------  --------
<S>                                                <C>       <C>      <C>
CASH FLOWS - OPERATING ACTIVITIES
Net earnings (loss)............................... $180.3   $103.8   $(200.4)
Adjustments to reconcile net earnings (loss)
  to net cash provided by operating activities:
  Depreciation and amortization...................  125.0    104.6      96.1
  Restructuring charge............................            93.0     312.6
  Cumulative effect of accounting changes.........                      80.6
  Postretirement benefits.........................   12.1      8.3       7.1
  Undistributed equity in earnings of joint venture (19.1)   (14.4)     (7.7)
  Deferred income taxes...........................   66.6     (5.2)    (60.6)
  Other, net......................................   (4.0)    (7.6)    (53.1)
                                                   -------  -------  --------
                                                    360.9    282.5     174.6
  Changes in noncash operating working capital:
    Accounts receivable...........................  (44.1)   (12.6)      9.7
    Inventories...................................  (16.3)   (11.4)    (11.1)
    Accounts payable, accrued liabilities and
      income taxes, net...........................  (12.8)   (32.1)    (37.6)
    Other, net....................................   (3.2)      .9       1.0
                                                   -------  -------  --------
Net cash provided by operating activities.........  284.5    227.3     136.6
                                                   -------  -------  --------
CASH FLOWS - INVESTING ACTIVITIES
Capital expenditures.............................. (160.8)  (172.3)   (188.3)
Acquisition spending.............................. (111.5)   (95.5)   (201.2)
IFL dividend receivable...........................            51.9
Proceeds from asset disposals.....................   21.2      8.6      19.9
Other, net........................................  (22.8)     7.2     (15.6)
                                                   -------  -------  --------
Net cash used by investing activities............. (273.9)  (200.1)   (385.2)
                                                   -------  -------  --------

CASH FLOWS - FINANCING ACTIVITIES
Increase (decrease) in short-term debt............   19.9    (58.6)     71.4
Proceeds from long-term debt......................    3.2    196.4     193.3
Payments on long-term debt........................  (10.3)  (101.6)    (11.1)
Issuance of Mallinckrodt common stock.............    8.0     10.9      17.9
Acquisition of treasury stock.....................  (15.4)              (6.5)
Dividends paid....................................  (42.2)   (37.7)    (33.2)
                                                   -------  -------  --------
Net cash provided (used) by financing activities..  (36.8)     9.4      231.8
                                                   -------  -------  --------
Increase (decrease) in cash and cash equivalents..  (26.2)    36.6      (16.8)
Cash and cash equivalents at beginning of period..   87.9     51.3       68.1
                                                   -------  -------  ---------
Cash and cash equivalents at end of period........ $ 61.7   $ 87.9   $   51.3
                                                   =======  =======  =========
</TABLE>

(The accompanying Notes are an integral part of the Consolidated Financial
Statements.)
<PAGE>
<TABLE>
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(In millions except per share amounts)
<CAPTION>
                                          Capital in
                       Preferred  Common  Excess of  Reinvested         Treasury
                         Stock    Stock   Par Value   Earnings  Other    Stock
                        --------- ------- ---------- ---------- ------ ---------
<S>                      <C>      <C>       <C>        <C>       <C>     <C>
BALANCE, JUNE 30, 1992.. $ 11.0   $ 87.1    $ 253.1    $1,013.9  $ 37.3  $(178.2)
Net loss................                                 (200.4)
Dividends:
  4 Percent cumulative
    preferred stock
    ($4.00 a share).....                                    (.4)
  Common stock ($.43 a
  share)................                                  (32.8)
Stock option exercises..                        7.1                        10.8
Acquisition of treasury
  stock.................                                                   (6.5)
Translation adjustment..                                          (95.9)
Other...................                        2.2                         2.2
                         ------   ------    -------    --------  -------  -------
BALANCE, JUNE 30, 1993..   11.0     87.1      262.4       780.3   (58.6)  (171.7)
Net earnings............                                  103.8
Dividends:
  4 Percent cumulative
    preferred stock
    ($4.00 a share).....                                    (.4)
  Common stock ($.485 a
    share)..............                                  (37.3)
Stock option exercises..                        4.0                          6.9
Translation adjustment..                                           24.4
Other...................                        1.8                          2.2
                         ------   ------    -------    --------  -------  -------
BALANCE, JUNE 30, 1994..   11.0     87.1      268.2       846.4   (34.2)  (162.6)
Net earnings............                                  180.3
Dividends:
  4 Percent cumulative
    preferred stock
    ($4.00 a share)....                                     (.4)
Common stock ($.545 a
  share)...............                                   (41.8)
Stock option exercises.                         2.0                          6.2
Acquisition of treasury
  stock................                                                    (15.4)
Translation adjustment.                                            24.9
Other.............                              3.9                         (4.1)
                         ------   ------    -------    --------  -------  -------
BALANCE, JUNE 30, 1995.  $ 11.0   $ 87.1    $ 274.1    $  984.5  $ (9.3)  $(175.9)
                         ======   ======    =======    ========  =======  ========
</TABLE>
(The accompanying Notes are an integral part of the Consolidated Financial
Statements.)
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In millions except per share amounts)

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Financial statements of all majority owned subsidiaries are
consolidated.  Investments in 20 to 50 percent owned affiliates are
reported on the equity method.

Accounting Changes

In the fourth quarter of 1993, Mallinckrodt adopted Statements of
Financial Accounting Standards (FAS) No. 106 "Employers' Accounting
for Postretirement Benefits Other Than Pensions,"  FAS No. 109
"Accounting for Income Taxes" and FAS No. 112 "Employers' Accounting
for Postemployment Benefits," all retroactive to July 1, 1992.  The
cumulative effects of these accounting changes at July 1, 1992
pertaining to years prior to 1993 follow:

                          Amount    Per Share
                          ------    ---------
          FAS No. 106     $63.0      $ .81
          FAS No. 109      16.5        .21
          FAS No. 112       1.1        .02
                          -----      ------
          Total           $80.6      $1.04
                          =====      ======

Foreign Currency Translation

The financial statements of most of the Company's international
affiliates are translated into U.S. dollars using current exchange
rates for balance sheets and weighted average rates for income
statements.   Unrealized translation adjustments are included in
shareholders' equity in the Consolidated Balance Sheet.  

The financial statements of international affiliates that operate in
hyperinflationary economies, principally Brazil, are translated at
either current or historical exchange rates, as appropriate. 
Unrealized translation adjustments are included in operating results
for these affiliates.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of certificates of
deposit, time deposits and other short-term securities with maturities
of three months or less from the date of purchase.

Inventories

Inventories are valued at the lower of cost or market. Cost for
inventories is determined on either an average or first-in, first-out
basis.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation is
based upon estimated useful lives of 15 to 45 years for buildings and
4 to 15 years for machinery and equipment, using principally the
straight-line method. 

Derivative Financial Instruments

The Company hedges a significant portion of its foreign exchange
exposure using certain derivative financial instruments, primarily
forward contracts, currency swaps and purchased options.  Forward
contracts and currency swaps are carried off-balance-sheet with gains
and losses included in the measurement and recording of the
hedged transactions.  Premiums on purchased options are recorded as
assets and amortized to match the anticipated cash flows being hedged. 
See also Note 8.

Advertising Costs

All advertising costs are expensed as incurred and included in
selling, general and administrative expenses.  Advertising expense was
$41.2 million, $35.1 million and $41.7 million in 1995, 1994 and 1993,
respectively.

Reclassifications

Certain amounts in prior years have been reclassified to conform to
the current year presentation.

NOTE 1:  CHANGES IN BUSINESS

RESTRUCTURING PROGRAMS

In the fourth quarter of 1994, the Company recorded a restructuring
charge of $93.9 million, $58.8 million after taxes, or $.76 per share,
relating to Mallinckrodt Medical and Mallinckrodt Veterinary.
Restructuring actions related to the program are on track and
achieving anticipated results at June 30, 1995.  The Mallinckrodt
Medical pre-tax restructuring charge of $73.9 million included the
reorganization of the current medical specialty oriented U.S. sales
structure into a unified organization divided into geographical
districts; reorganization to reduce, centralize and standardize
certain non-sales related functions and management processes;
rationalization of manufacturing operations for substantial worldwide
cost and sourcing improvements; and severance costs related to an
associated workforce reduction. Pre-tax cash expenditures for this
restructuring are expected to approximate the original estimate of $65
million, consisting of $28 million for severance costs for about 500
people at various locations around the world, $15 million for
consulting, $13 million for manufacturing rationalization and $9
million for other items. The $9 million noncash pre-tax portion of the
charge primarily related to manufacturing rationalization. 
Approximately $26 million of cash expenditures were incurred through
June 30, 1995, the majority of which related to severance associated
with a workforce reduction of approximately 500 people and consulting
costs.  The majority of the remaining cash expenditures of $39 million
will be paid in 1996 and relate to severance for terminated employees
and consulting costs.  Based on the expenditures to date and those
anticipated by the original plan, no significant adjustment to the
reserve balance is expected at this time.  Also included in the
restructuring charge was a $20 million pre-tax charge to adjust
a prior year provision associated with Mallinckrodt Veterinary's
decision to discontinue development of porcine somatotropin (PST) in
May 1993.

In the fourth quarter of 1993, the Company recorded a restructuring
charge of $334.1 million, $242.2 million after taxes, or $3.13 per
share relating to Mallinckrodt Veterinary and Mallinckrodt Chemical.
Restructuring actions related to the program are substantially
complete at June 30, 1995.  Pre-tax cash expenditures for
restructuring charges are expected to approximate the original
estimate of $173 million and are primarily related to severance costs
of $54 million, lease costs related to a closed facility of $55
million, consulting costs of $15 million, and manufacturing
rationalization and other costs of $49 million.  The $161 million
noncash portion of the charges primarily related to the write-off of
plant facilities.  Approximately $73 million of the cash expenditures
were incurred through June 30, 1995, the majority of which related to
severance for a workforce reduction of approximately 1,000 people and
consulting costs.  The majority of the remaining cash expenditures of
approximately $100 million relate to manufacturing rationalization to
be paid in 1996 and the present value of long-term lease payments. 
Based on the expenditures to date and those anticipated by the
original plan, no significant adjustment to the reserve balance is
expected at this time.

The Mallinckrodt Veterinary 1993 pre-tax restructuring charge of
$282.8 million included the discontinuance of the development of PST,
including manufacturing and support facilities; closure and
consolidation of manufacturing and other distribution and support
facilities; redefinition and reorganization of research and
development, commercial and administrative functions; exit of certain
animal health businesses; and severance costs related to a workforce
reduction of approximately 1,000 employees.

As part of the 1993 program, Mallinckrodt Chemical also recorded a
pre-tax charge of $51.3 million, primarily to close its aromatic
fluorine intermediates business and to sell its photochemical
business.  The restructuring charge included approximately
$40 million for write-down of carrying value of plant facilities and
$11 million of cash expenditures.

ACQUISITIONS

In June 1995, Mallinckrodt Medical acquired Alton Dean, Inc., a
manufacturer of products that warm sterile intravenous and irrigation
solutions used during and after surgery for $8.5 million.

In February 1995, Mallinckrodt Chemical acquired J.T. Baker Inc., a
manufacturer of laboratory, process and microelectronic chemicals for
$95.0 million.  

In March 1994, Mallinckrodt Chemical acquired Catalyst Resources,
Inc., a manufacturer of polymerization and chemical catalysts for
$61.2 million, and in September 1993, Mallinckrodt Medical acquired
DAR S.p.A., a manufacturer of anesthesiology and respiratory care
products for $28.0 million. 

In September 1992, Mallinckrodt Medical acquired the businesses of
HemoCue Intressenter, A.B., a manufacturer of point-of-care blood
chemistry systems, and in February 1993, the tracheostomy products
business of Sorin Biomedical, Inc. The cost of these acquisitions,
including acquisition accruals, totaled $198.0 million. 

The above acquisitions were accounted for as purchases and results of
operations were included in the consolidated financial statements from
their respective acquisition dates.  Results of operations for the
periods prior to acquisition were not material to Mallinckrodt.

DISCONTINUED OPERATIONS

The discontinued operations charges for 1995, 1994, and 1993 primarily
included environmental and related litigation costs related to
operations previously disposed.

NOTE 2:  EARNINGS PER COMMON SHARE

Earnings per common share amounts were computed on the basis of the
weighted average number of common and common equivalent shares
outstanding. Such weighted average shares used in the computations
were 77,458,114 in 1995; 77,607,416 in 1994 and 77,408,668 in 1993.

NOTE 3:  SUPPLEMENTAL CASH FLOW INFORMATION

                                            1995    1994    1993
                                           -----   -----   -----
Interest paid..............................$47.9   $33.0   $35.8
Income taxes paid.......................... 42.5    37.8    35.1
Noncash investing and financing activities:
  Assumption of liabilities related to 
    acquisitions........................... 42.4    27.9    25.0
  Issuance of common stock for restricted
    stock awards...........................          4.0     4.4


NOTE 4:  INVENTORIES

AT JUNE 30,                                 1995    1994
                                           ------  ------
Raw materials and supplies.................$132.5  $ 99.5
Work in process............................ 102.5    93.1
Finished goods............................. 198.8   184.3
                                           ------  ------
                                           $433.8  $376.9
                                           ======  ======

NOTE 5: INVESTMENTS AND LONG-TERM RECEIVABLES

AT JUNE 30,                                 1995    1994
                                           ------  ------
Tastemaker joint venture...................$ 92.3  $ 74.9
Other investments..........................  21.6    21.4
Other long-term receivables, net...........  51.6    50.7
                                           ------  ------
                                           $165.5  $147.0
                                           ======  ======

NOTE 6:  PROPERTY, PLANT AND EQUIPMENT

AT JUNE 30,                                  1995       1994
                                           ---------  ---------
Land.......................................$   72.1   $   69.3
Buildings and leasehold improvements.......   387.3      352.9
Machinery and equipment.................... 1,013.2      872.4
Construction in progress...................    67.9      101.4
                                           ---------  ---------
                                            1,540.5    1,396.0
Accumulated depreciation..................   (534.9)    (532.8)
                                           ---------  ---------
                                           $1,005.6   $  863.2
                                           =========  =========

Capitalized interest costs were $1.6 million in 1995, $3.7 million in
1994 and $6.3 million in 1993.

NOTE 7:  INTANGIBLE ASSETS

AT JUNE 30,                                 1995    1994
                                           ------  ------
Goodwill and other intangibles.............$575.0  $518.9
Patents and technology.....................  67.0    63.7
                                           ------  ------
                                            642.0   582.6
Accumulated amortization...................(131.6) (111.0)
                                           ------- -------
                                            510.4   471.6
Deferred charges...........................  18.3    17.7
                                           ------- -------
                                           $528.7  $489.3
                                           ======= =======

Identifiable intangible assets are amortized over estimated useful
lives of 8 to 25 years (weighted average life of 12 years) for patents
and technology. Goodwill and other intangibles are amortized primarily
on a straight-line basis over 10 to 40 years (weighted average life of
28 years).

NOTE 8:  FINANCIAL INSTRUMENTS

Derivative Financial Instruments
--------------------------------
In the ordinary course of business, Mallinckrodt purchases materials
and sells finished products denominated in various currencies.  The
Company uses certain derivative financial instruments to manage its
exposure to foreign currency exchange risk, principally forward
foreign exchange contracts, currency swaps and foreign currency
purchased options.  These contracts reduce the Company's overall
exposure to exchange rate fluctuations by effectively fixing the
transaction cost to the Company.  

Carrying and fair values for derivative financial instruments are
summarized below.

                                               At June 30, 1995
                                            ----------------------
                                            Carrying       Fair
                                              Value        Value
                                            --------     ---------
Forward foreign currency contracts and 
  swaps hedging short-term intercompany
  and third-party financing by inter-
  national operations, notional value
  $151.6 million........................     $---        $ (.4)
Forward foreign currency contracts and 
  swaps hedging anticipated cross 
  currency sales and purchases, notional
  value $70.5 million...................      ---           .5
Forward foreign currency options 
  hedging anticipated cross currency 
  sales and purchases, notional value 
  $97.5 million.........................      ---         (2.0)
Interest rate swap, pay fixed rate, 
  receive floating rate, notional value
  $38.2 million.........................      ---          ---

Anticipated transactions include purchases of raw materials or other
inventory, collection of accounts receivable, settlement of accounts
payable, and periodic debt service by international subsidiaries. 
Purchased options and forward foreign exchange contracts generally
have initial terms of less than two years.  Deferred gains and losses
are recognized in income when the underlying transaction is settled.

Fair Value of Financial Instruments
-----------------------------------
Non-derivative financial instruments included in the Consolidated
Balance Sheet are cash, commercial paper and long-term debt.  These
instruments were carried at amounts approximating fair value at June
30, 1995 and 1994. The fair value of long-term debt was estimated
based on future cash flows discounted at current interest rates
available to the Company for debt with similar maturities and
characteristics.

Concentrations of Credit Risk
-----------------------------
Financial instruments which expose Mallinckrodt to credit risk are
short-term investments (cash equivalents), trade receivables and
derivatives.  The Company mitigates the risk that counterparties to
short-term investments and derivatives will fail to perform by
contracting only with major financial institutions having
high credit ratings, and considers the likelihood of counterparty
failure to be remote.

Trade receivables stem from the Company's worldwide operations and
reflect Mallinckrodt's diverse customer base.  The Company
periodically assesses the financial strength of its customers and
obtains proof of credit worthiness, as necessary, prior to extending
credit.  Consequently, Mallinckrodt does not have a material
concentration of credit risk, either by transaction type, product line
or geographic region.

NOTE 9:  INCOME TAXES

In the first quarter of 1994, the Revenue Reconciliation Act of 1993
was signed.  This Act increased the Federal statutory income tax rate
1 percent, to 35 percent, retroactive to January 1, 1993.
Additionally, in the third quarter of 1994 certain foreign (primarily
German and Swedish) tax rates decreased. The net impact of these
rate changes resulted in a non-recurring benefit of $3.0 million in
1994 related to the revaluation of deferred taxes in accordance with
FAS 109, "Accounting for Income Taxes."

Income taxes included in the Consolidated Statement of Operations
were:

                                             1995    1994    1993
                                            ------- ------- -------
Continuing operations.....................  $110.5  $ 64.0  $(19.3)
Discontinued operations...................    (2.1)   (2.0)   (3.1)
Cumulative effect of accounting changes...                   (19.4)
                                            ------- ------- -------
                                            $108.4  $ 62.0  $(41.8)
                                            ======= ======= =======

The geographical sources of earnings (loss) from continuing operations
before income taxes were:

                                             1995    1994    1993
                                            ------- ------- -------
United States.............................  $155.8  $ 87.1  $(126.2)
Outside United States.....................   138.8    84.3     (6.9)
                                            ------- ------- --------
                                            $294.6  $171.4  $(133.1)
                                            ======= ======= ========

The components of the income tax provision (benefit) charged
(credited) to continuing operations follow.  

                                             1995    1994    1993
                                            ------- ------- -------
Current:
U.S. Federal..............................  $  3.0  $ 37.7  $ 15.0
U.S. State and local......................     4.2     6.5     6.5
Outside United States.....................    36.7    25.0    19.8
                                            ------- ------- -------
                                              43.9    69.2    41.3
Deferred:
U.S. Federal..............................    42.5   (12.7)  (57.3)
U.S. State and local......................     5.2      .8    (2.9)
Outside United States.....................    18.9     6.7     (.4)
                                            ------- ------- -------
                                              66.6    (5.2)  (60.6)
                                            ------- ------- -------
                                            $110.5  $ 64.0  $(19.3)
                                            ======= ======= =======

The Company had the following deferred tax balances at June 30, 1995
and 1994:

                                                     1995     1994
                                                    ------   ------
Deferred tax assets:
  Restructuring accruals........................... $ 51.3   $ 97.9
  Employee benefits................................   71.6     57.6
  Net operating losses.............................   21.8     45.5
  Alternative minimum tax credit...................    8.3     10.9
  Environmental accruals...........................    9.7      5.4
  Other, net.......................................    6.6      4.4
                                                    -------  -------
Gross deferred tax assets..........................  169.3    221.7
  Valuation allowances.............................  (24.7)   (49.8)
                                                    -------  -------
Total deferred tax assets..........................  144.6    171.9

Deferred tax liabilities:
  Property, plant and equipment....................   85.5     86.7
  Receivables......................................   58.2     24.1
  Intangible assets................................   26.6     20.2
                                                    -------  -------
Total deferred tax liabilities.....................  170.3    131.0
                                                    -------  -------
Net deferred tax (assets) liabilities.............. $ 25.7   $(40.9)
                                                    =======  =======

The alternative minimum tax credit of $8.3 million is available to
reduce future Federal taxes payable and has an unlimited carryforward
period.

The tax benefit of the Company's net operating loss carryforwards of
$21.8 million relates to its non-U.S. operations.  Factors causing the
effective tax rate for continuing operations to differ from the
U.S. Federal statutory rate were:

                                              1995    1994    1993
                                             ------  ------  ------
Computed tax at the U.S. Federal statutory 
  rate.....................................  $103.1  $ 60.0  $(45.3)
Statutory rate changes.....................            (3.0)
Adjustments to income tax accruals.........                    (5.0)
State income taxes, net of Federal benefit.     6.1     4.7     5.8
Restructuring..............................                    21.7
Other items................................     1.3     2.3     3.5
                                             ------- ------- -------
Income tax provision (benefit).............  $110.5  $ 64.0  $(19.3)
                                             ======= ======= =======
Effective tax rate.........................   37.5%   37.3%   14.5%

The effective rate for 1994 before the net tax benefit from the
restructuring charge and the previously discussed statutory rate
changes was 38.5 percent. The 1993 effective rate before the net
benefit for restructuring and FAS 109 adoption was 36.8 percent. The
favorable adjustments to income tax accruals included in the preceding
table resulted from the conclusion of income tax audits that spanned a
number of years.

Undistributed earnings of certain subsidiaries outside the United
States are considered to be permanently invested. Accordingly, no
provision for income taxes was made for undistributed earnings of such
subsidiaries which aggregated $188.4 million at June 30, 1995.

NOTE 10:  ACCRUED LIABILITIES

AT JUNE 30,                                   1995    1994
                                            -------  -------
Restructuring accruals.....................  $139.0  $176.1
Other......................................   210.4   179.9
                                             ------  ------
                                             $349.4  $356.0
                                             ======  ======

NOTE 11:  DEBT

The components of short-term debt were:

AT JUNE 30,                                  1995    1994
                                            ------  ------
Commercial paper........................... $ 53.3  $ 72.5
Notes payable..............................  125.7    55.0
Current maturities of long-term debt.......   18.5    20.3
                                            ------  ------
                                            $197.5  $147.8
                                            ======  ======

The components of long-term debt were:
AT JUNE 30,                                  1995    1994
                                            ------  ------
Commercial paper........................... $100.0  $100.0
9.875% debentures due in annual 
  installments of $15.0 million, beginning
  in 2002, with final payment of $12.8
  million in 2011..........................  134.8   134.6
8.75% promissory note due in annual 
  installments of $10.3 million, with final
  payment of $.5 million in 1997...........   10.8    31.3
7% debentures due 2013.....................   98.5    98.5
6% notes due 2003..........................   99.3    99.2
Other......................................   76.6    78.7
                                            ------  ------
                                             520.0   542.3
Less current maturities....................   18.5    20.3
                                            ------  ------
                                            $501.5  $522.0

At June 30, 1995 and 1994, commercial paper totaling $100.0 million,
has been classified as long-term debt as it is backed by irrevocable
long-term lines of credit.

The 9.875% debentures are redeemable at the option of Mallinckrodt at
100 percent in 2001 and thereafter. 

Maturities of long-term debt for the next five years are:  1996-$18.5
million; 1997-$6.6 million; 1998-$4.4 million; 1999-$34.7 million; and
2000-$103.6 million (includes $100.0 million of commercial paper).

The weighted average interest rate on short-term borrowings at June
30, 1995 and 1994 was 6.3% and 4.6%, respectively.

NOTE 12:  LINES OF CREDIT

The Company has a $450 million private-placement commercial paper
program.  This program is backed by $650 million of U.S. lines of
credit, $100 million available until March 1996 and $550 million
available until November 1999.  Under the terms of this agreement,
interest rates are determined at the time of borrowing and are
dependent on the Company's senior debt ratings and usage level of the
facility.  At current usage level and senior debt ratings, the
borrowing cost would be based on London Interbank Offered Rates plus
 .14 percent, or other alternative rates.

Commercial paper and borrowings under the U.S. credit lines of $153.3
million and $90 million, respectively, were outstanding at June 30,
1995.  Non-U.S. lines of credit totaling $262.6 million are also
available and borrowings under these lines were $35.7 million at June
30, 1995.  These non-U.S. lines are cancelable at any time.

NOTE 13:  PENSION AND INVESTMENT PLANS

The Company has pension plans covering substantially all its employees
that provide for retirement benefits based on years of service and the
level of compensation for the highest three to five years occurring
generally within a period of up to 10 years prior to retirement.
Contributions to the U.S. plans meet ERISA minimum funding
requirements.

Pension expense for continuing operations follows:

                                             1995    1994    1993
                                            ------  ------  ------
Service cost............................... $18.9   $18.1   $15.6
Interest cost on projected benefit 
  obligation...............................  31.7    30.8    29.9
Earnings on plan assets.................... (24.0)  (21.2)  (35.0)
Net amortization of initial unrecognized
  asset and deferral of subsequent 
  unrecognized net gains and losses........  (5.7)   (7.5)    9.3
                                            ------  ------  ------
                                            $20.9   $20.2   $19.8
                                            ======  ======  ======

U.S. pension expense in 1995, 1994 and 1993 was $17.9 million, $16.2
million and $15.7 million, respectively.

Assumptions used in determining the actuarial present value of benefit
obligations follow:

                                             1995    1994    1993
                                            ------  ------  ------
Discount rate..............................  8.5%    8.0%    8.5%
Long-term rate of return on plan assets....  9.5%   10.0%   10.0%
Compensation increase rate.................  5.5%    5.5%    6.0% 

The plans' assets mostly relate to U.S. plans and consist primarily of
corporate equities, U.S. government debt securities and units of
participation in a collective short-term investment fund.

The Company also sponsors three defined contribution investment plans. 
Participation in these plans is voluntary, with substantially all
employees eligible to participate.  Expenses related to the plans
consist primarily of Company contributions which are based on
percentages of certain employee contributions, plus discretionary
amounts determined on an annual basis.  Defined contribution expense
for 1995, 1994 and 1993 was $12.4 million, $10.6 million and $7.5
million, respectively.

The funded status of Mallinckrodt's U.S. and non-U.S. pension plans
and amounts recognized in the balance sheet follow:

<TABLE>  
<CAPTION>            
                                     1995                       1994
                            ------------------------  -------------------------
                            Plans With   Plans With    Plans With   Plans With
                            Assets In    Accumulated   Assets In    Accumulated
                            Excess of    Benefits      Excess of    Benefits
                            Accumulated  In Excess     Accumulated  In Excess
                            Benefits     of Assets     Benefits     of Assets
                            -----------  -----------  -----------  -----------
<S>                           <C>           <C>          <C>         <C>
Assets at fair value.......   $307.2        $ 48.8       $292.0      $ 41.2
Actuarial present value of
  benefit obligation:
    Vested benefits........    254.6          61.0        242.8        56.7
    Nonvested benefits.....      4.8           6.7          5.5         6.5
                              ------        ------       ------      ------
    Accumulated benefit
      obligation...........    259.4          67.7        248.3        63.2
    Projected future 
      salary increases.....     69.8          19.4         67.6        23.4
                              ------        ------       ------      ------
    Projected benefit 
      obligation...........    329.2          87.1        315.9        86.6
                              ------        ------       ------      ------
Projected benefit obligation
  in excess of plan assets..   (22.0)        (38.3)       (23.9)      (45.4)
Items not yet recognized in
  earnings:
    Unrecognized net (gain)
      loss..................    23.1          (2.3)        28.2         7.9
    Unamortized transition
      (asset) liability.....    (2.6)         10.8         (2.4)       12.7
                              -------       -------      -------     -------
Prepaid (accrued) pension
  liability.................  $ (1.5)       $(29.8)      $  1.9      $(24.8)
                              =======       =======      =======     =======
</TABLE>

NOTE 14:  POST RETIREMENT AND POSTEMPLOYMENT BENEFITS

Mallinckrodt provides certain health care benefits for U.S. salaried
and hourly retired employees. Employees may become eligible for health
care benefits if they retire after attaining specified age and service
requirements while they worked for the Company. Health care benefits
are paid directly by Mallinckrodt.

Net periodic postretirement benefits expense for 1995, 1994 and 1993
consisted of the following:
    
                                             1995    1994    1993
                                            ------  ------  ------
Service cost for benefits earned during the
  year..................................... $ 4.9   $ 3.6   $ 3.8
Interest cost on benefit obligation........  13.0    10.4    10.7
Amortization of unrecognized net loss......    .6
                                            -----   -----   -----
                                            $18.5   $14.0   $14.5
                                            =====   =====   =====

The following table presents the plan's funded status reconciled with
amounts recognized in the Company's statement of financial position: 


                                                      1995    1994
                                                     ------  ------
Accumulated postretirement benefit obligation (APBO):
  Retirees........................................... $90.3   $91.2
  Active employees...................................  62.8    60.0

Accumulated postretirement benefit obligation in 
  excess of plan assets............................. 153.1   151.2
Unrecognized net loss............................... (10.4)  (26.5)
                                                     ------  ------
Accrued postretirement benefit cost................. $142.7  $124.7
                                                     ======  ======

The discount rate used in determining the APBO at June 30, 1995 and
1994 was 8.5 percent and 8.0 percent, respectively. 

The assumed health care cost trend rate used in measuring the APBO at
June 30, 1995 was 10.0 percent, gradually declining to 5.0 percent in
2006 and thereafter.  At June 30, 1994 the rate was 10.5 percent
gradually declining to 5.0 percent in 2005 and thereafter.  A one
percentage point increase in the health care cost trend rate would
increase the APBO as of June 30, 1995, by $17.8 million and the
aggregate service and interest cost by $2.5 million. 

NOTE 15:  CAPITAL STOCK

The Company has authorized and issued 100,000 shares, 98,330
outstanding at June 30, 1995, par value $100, 4 Percent cumulative
preferred stock. This stock, with voting rights, is redeemable at the
Company's option at $110 a share. During the three years ended June
30, 1995, the number of issued and outstanding shares did not change. 

At June 30, 1995, the Company has authorized 1,400,000 shares, par
value $1, of series preferred stock, none of which is outstanding. 

Each outstanding common share includes a non-voting common stock
purchase right. If a person or group acquires or has the right to
acquire 20 percent or more of the common stock or commences a tender
offer for 30 percent or more of the common stock, the rights become
exercisable by the holder who may then purchase $167 worth of
common stock for $83 unless, in lieu thereof, the Board of Directors
causes the exchange of each outstanding right for one share of common
stock (in either case exclusive of the rights held by the acquiring
person or group which are voided). In the event of a merger or sale of
50 percent or more of the Company's assets, the rights may in certain
circumstances entitle the holder to purchase $167 worth of stock in
the surviving entity for $83. The rights may be redeemed by the Board
at a price of $.017 per right at any time before they become
exercisable, and unless they become exercisable, they will expire
March 31, 1996. 

The Company has a three year incentive award program for executive
officers which expires June 30, 1997. There are 1,000,000 common
shares reserved for issuance under this plan. 

Common shares reserved at June 30, 1995, consisted of the following: 

Exercise of common stock purchase rights................ 87,711,353
Exercise of stock options and granting of stock awards.. 10,960,267
                                                         ----------
                                                         98,671,620

Changes in the number of shares of common stock issued 
  and in treasury were as follows:
                                     1995        1994        1993
                                 -----------  ----------- ----------
Common stock issued.............. 87,116,289  87,116,289  87,116,289
Treasury common stock:
  Balance, beginning of year..... 10,110,056  10,671,514  11,371,742
  Stock options exercised........   (371,913)   (429,645)   (833,560)
  Purchased......................    499,854          19     274,267
  (Awards) cancellations of 
    restricted shares............    127,206    (131,832)   (140,935)
                                  ----------- ----------- -----------
  Balance, end of year........... 10,365,203  10,110,056  10,671,514
                                  ----------- ----------- -----------
Common stock outstanding, end of
  year........................... 76,751,086  77,006,233  76,444,775 
                                  ==========  ==========  ==========

NOTE 16:  STOCK PLANS

Three non-qualified stock option plans provide for granting options to
purchase shares of common stock at prices not less than 100 percent of
market price (as defined) at the date of grant. Options under these
plans are exercisable over nine years beginning one year after the
date of grant and are limited to 50 percent during the first year of
eligibility.  

Information on stock option activity follows: 
 
                                     Price
                                     Range    1 995       1994
                                     ------  ---------  ---------
NUMBER OF OPTIONS
Outstanding, beginning of year...... $10-40  5,351,732  4,883,358
Granted.............................  30-34  1,419,656  1,363,680
Cancelled...........................  16-40   (272,826)  (465,661)
Exercised...........................  10-37   (371,913)  (429,645)
                                             ---------- ----------
Outstanding, end of year............  10-40  6,126,649  5,351,732
                                             =========  =========
AT JUNE 30,
  Exercisable..............................  4,214,583  3,478,030
  Reserved for future option grants........  3,833,618  4,980,448

The average exercise price of outstanding stock options at June 30,
1995, was $30.14 a share, based on an aggregate exercise price of
about $185 million. Outstanding stock options will expire over a
period ending no later than April 17, 2005. 

The 1973 non-qualified stock option and award plan also provides for
the award of restricted shares of Mallinckrodt's common stock to
executive officers. Under provisions of the plan, the grantee makes no
cash payment for the award and the shares are held in escrow until
vested, with the grantee being unable to dispose of the restricted
shares until vested.  Upon forfeiture of any share of restricted stock
in accordance with the stock option and award plan, or the terms and
conditions of the award, the shares would automatically be transferred
to and reacquired by the Company at no cost.  In 1995 and 1994, the
Company issued from its treasury stock 109 and 131,832 restricted
shares, respectively.  In 1995, the Company reacquired 127,315 shares
of unrestricted stock in lieu of payment of withholding taxes on the
424,215 shares of restricted stock previously awarded to executive
officers in connection with a three year incentive award program which
expired and vested on June 30, 1994. An additional award of 5,000
shares of restricted stock will vest on April 3, 1996. 

NOTE 17:  INTERNATIONAL OPERATIONS

Net sales, earnings from continuing operations before income taxes,
and identifiable assets by geographic areas follow:

1995           United              Asia/    Latin
               States    Europe   Pacific  America  Canada    Total
              --------   ------   -------  -------  ------  ---------
Gross Sales   $1,519.1   $588.1   $187.4   $118.1   $101.8   $2,514.5
Intercompany     135.6    111.6      5.2      4.0     46.0      302.4
              --------   ------   ------   ------   ------   --------
Net Sales     $1,383.5   $476.5   $182.2   $114.1   $ 55.8   $2,212.1
              ========   ======   ======   ======   ======   ========


1994           United             Asia/    Latin
               States    Europe   Pacific  America  Canada    Total
              --------   ------   -------  -------  ------   --------
Gross Sales   $1,353.3   $453.7   $163.7   $119.1   $84.3    $2,174.1
Intercompany     130.0     68.9      3.3      2.1    29.7       234.0
              --------   ------   ------   -------  -----    --------
Net Sales     $1,223.3   $384.8   $160.4   $117.0   $54.6    $1,940.1
              ========   ======   ======   =======  =====    ========


1993           United             Asia/    Latin
               States    Europe   Pacific  America  Canada    Total
              --------   ------   -------  -------  ------   --------
Gross Sales   $1,240.9   $395.0   $167.8   $113.0   $72.4    $1,989.1
Intercompany     119.9     41.7      6.4       .6    24.2       192.8
              --------   ------   ------   ------   -----    --------
Net Sales     $1,121.0   $353.3   $161.4   $112.4   $48.2    $1,796.3
              ========   ======   ======   ======   =====    ========


EARNINGS                                     1995    1994    1993
                                            ------  ------  ------
United States.............................  $208.8  $220.0  $ 181.9
Europe....................................   116.2    67.3     56.5
Asia/Pacific..............................    12.0    14.6     16.4
Latin America.............................    23.2    17.8     16.0
Canada....................................     5.0     4.0      (.4)
Restructuring charge......................           (93.9)  (334.1)
Corporate.................................   (28.8)  (30.2)   (35.5)
Eliminations..............................    (7.5)   (6.5)    (9.8)
                                            ------- ------- --------
Operating earnings........................   328.9   193.1   (109.0)
Equity in pre-tax earnings of joint
  venture.................................    25.3    18.5     10.6
Interest expense, net.....................   (59.6)  (40.2)   (34.7)
                                            ------- ------- --------
Consolidated..............................  $294.6  $171.4  $(133.1)
                                            ======= ======= ========


ASSETS                                   1995      1994      1993
                                       --------  --------  --------
United States......................... $1,570.9  $1,385.6  $1,211.5

Europe................................    800.0     736.4     601.5
Asia/Pacific..........................    228.7     171.6     155.3
Latin America.........................     84.3      80.5      78.4
Canada................................     47.0      32.9      26.0
Corporate.............................    113.3     143.4     188.3
Eliminations..........................   (123.6)   (116.9)    (83.4)
                                       ---------  --------  --------
Consolidated.......................... $2,720.6   $2,433.5  $2,177.6
                                       =========  ========  ========

RESTRUCTURING CHARGES BY REGION WERE:              1994     1993
                                                   -----   ------
United States..................................... $93.9   $257.9
Europe............................................           35.4
Asia/Pacific......................................           33.0
Latin America.....................................            7.8
                                                   -----   ------
                                                   $93.9   $334.1
                                                   =====   ======

Transfers of product between geographic areas are at prices
approximating those charged to unaffiliated customers.  All such
transfers are fully eliminated.

Net foreign exchange translation gains (losses) from businesses in
hyperinflationary economies aggregated $.7 million, $(4.2) million and
$(5.8) million in 1995, 1994 and 1993, respectively, and have been
included in "Other operating income (expense), net" in the
Consolidated Statement of Operations. These translation effects were
primarily from Mallinckrodt Veterinary operations in Latin America.
Translation effects for all of Mallinckrodt's businesses were not
material.

NOTE 18:  BUSINESS SEGMENTS

The tables on page 27 show Mallinckrodt's continuing worldwide
operations, which are organized in three industry segments as follows: 

MALLINCKRODT CHEMICAL

Production and sale of analgesics and medicinal narcotics used by
pharmaceutical companies and catalysts, specialty inorganics,
stearates and laboratory chemicals used by industry and research
organizations. Through the Tastemaker joint venture, the company also
participates in the worldwide flavors business. 

MALLINCKRODT MEDICAL

Production and sale of products used primarily in hospitals, including
X-ray contrast media, interventional products, diagnostic and
therapeutic radiopharmaceuticals, airway management products,
temperature monitoring products, and blood gas and vital sign
monitoring systems. 

MALLINCKRODT VETERINARY

Production and sale of pharmaceuticals, biologicals, veterinary
specialties,  other health-related products and mineral feed
supplements for food and companion animals. 

NONRECURRING CHARGES

Restructuring charges recorded in 1994 and 1993 are discussed 
in Note 1. 

In 1993, corporate expense included charges of $5.5 million, $3.4
million after taxes, or $.04 per share, from executive resignations
resulting from the performance of Mallinckrodt Veterinary which were
reported in the Consolidated Statement of Operations under "Selling,
administrative and general expenses." 

NOTE 19:  COMMITMENTS  

The Company leases office space, data processing equipment, buildings,
and machinery and equipment. Rent expense for continuing operations in
1995, 1994 and 1993 related to operating leases was $27.9 million,
$32.1 million and $29.6 million, respectively. 

Minimum rent commitments for continuing operations at June 30, 1995,
under operating leases with a remaining noncancelable period exceeding
one year follow:  


YEARS ENDING JUNE 30,
1996....................................................$ 31.9
1997....................................................  24.0
1998....................................................  18.3
1999....................................................  15.6
2000....................................................  13.6
Later years.............................................  40.5
                                                        ------
                                                        $143.9
                                                        ======

NOTE 20:  CONTINGENCIES

The Company is subject to various investigations, claims and legal
proceedings covering a wide range of matters that arise in the
ordinary course of its business activities. In addition, in connection
with laws and regulations pertaining to the protection of the
environment, the Company is a party to several environmental
remediation investigations and clean-ups and, along with other
companies, has been named a "potentially responsible party" for
certain waste disposal sites. Each of these matters is subject to
various uncertainties, and it is possible that some of these matters
will be decided unfavorably against the Company. The Company has
established accruals for matters that are in its view probable and
reasonably estimable. Based on information presently available,
management believes that existing accruals are sufficient to satisfy
any known environmental liabilities.  Further, any additional
liability that may ultimately result from the resolution of these
matters is not expected to have a material effect on Mallinckrodt's
business or financial condition taken as a whole.

<PAGE>

QUARTERLY RESULTS
(In millions except per share amounts)
<TABLE>
<CAPTION>
Fiscal 1995 (Unaudited)
                                          Quarter
                           -------------------------------------
                           First     Second    Third     Fourth      Year
                           -------   -------   -------   -------   ---------
<S>                        <C>       <C>       <C>       <C>       <C> 
Net sales................  $487.7    $516.3    $569.1    $639.0    $2,212.1
Gross margins............   213.0     236.7     255.9     291.3       996.9
Earnings from continuing
  operations.............    34.7      40.6      48.1      60.7       184.1
Loss from discontinued 
  operations.............     (.8)      (.8)     (1.1)     (1.1)       (3.8)
                           -------   -------   -------   -------   ---------
Net earnings.............    33.9      39.8      47.0      59.6       180.3
Preferred stock dividends     (.1)      (.1)      (.1)      (.1)        (.4)
                           -------   -------   -------   -------   ---------
Available for common 
  shareholders...........  $ 33.8    $ 39.7    $ 46.9    $ 59.5    $  179.9
                           =======   =======   =======   =======   =========
Earnings per common share:
  Continuing operations..  $ .45     $ .52     $ .62     $ .78     $2.37
  Discontinued operations.  (.01)      (.01)    (.01)     (.02)     (.05)
                           ------    -------   ------    ------    ------
Net earnings.............. $ .44     $ .51     $ .61     $ .76     $2.32
                           ======    =======   ======    ======    ======
</TABLE>
<TABLE>
<CAPTION>
Fiscal 1994 (Unaudited)
                                          Quarter
                           -------------------------------------
                           First     Second    Third     Fourth      Year
                           -------   -------   -------   -------   ---------
<S>                        <C>       <C>       <C>       <C>       <C> 
Net sales................. $444.9    $466.3    $486.7    $542.2    $1,940.1
Gross margins.............  202.4     215.3     229.5     255.6       902.8
Earnings (loss) from 
  continuing operations...   35.3      36.7      42.9      (7.5)      107.4
Loss from discontinued 
  operations..............    (.8)      (.7)      (.6)     (1.5)       (3.6)
                           -------   -------   -------   -------   ---------
Net earnings (loss).......   34.5      36.0      42.3      (9.0)      103.8
Preferred stock dividends.    (.1)      (.1)      (.1)      (.1)        (.4)
                           -------   -------   -------   -------   ---------
Available for common 
  shareholders............ $ 34.4    $ 35.9    $ 42.2    $ (9.1)   $  103.4
                           =======   =======   =======   =======   =========
Earnings (loss) per common
  share:
  Continuing operations... $ .45     $ .47     $ .55     $(.10)    $1.38
  Discontinued operations.  (.01)     (.01)     (.01)     (.02)     (.05)
                           ------    ------    ------    ------    ------
  Net earnings (loss)..... $.44      $.46      $.54      $(.12)    $1.33
                           ======    ======    ======    ======    ======
</TABLE>
Fiscal 1994
Earnings from continuing operations included favorable tax adjustments
of $1.4 million, or $.02 per share and $1.6 million, or $.02 per
share, in the first and third quarters, respectively, resulting from
U.S. and foreign tax law changes. 

Fourth quarter earnings from continuing operations included after-tax
restructuring charges of $58.8 million, or $.76 per share. 

Earnings from continuing operations without restructuring charges and
favorable tax adjustments were: 

<TABLE>
<CAPTION>
                                          Quarter
                           -------------------------------------
                           First     Second    Third     Fourth      Year
                           -------   -------   -------   -------   ---------
<S>                        <C>       <C>       <C>       <C>       <C> 
Net of taxes.............. $33.9     $36.7     $41.3     $51.3     $163.2
Per share................. $ .43     $ .47     $ .53     $ .66     $ 2.10
</TABLE>

Earnings per share for the four quarters of 1994 are less than full
year per share results by $.01, due to an increase in common shares
outstanding. 

<PAGE>

                   CONSENT OF ERNST & YOUNG LLP

We consent to the incorporation by reference in the Registration
Statements (Form S-3 No. 33-47081 and Form S-3 No. 33-57821) of
Mallinckrodt Group Inc. and in the related Prospectus of our report
dated August 8, 1995, with respect to the consolidated financial
statements of Mallinckrodt Group Inc. for the year ended June 30, 1995
included in this Current Report (Form 8-K) filed with the Securities
and Exchange Commission on September 8, 1995.

St. Louis, Missouri
September 8, 1995

<PAGE>
Mallinckrodt Group Inc.



ROGER A. KELLER
Vice President, Secretary 
  and General Counsel


DATE:  September 8, 1995
[{"type": "8-K", "sequence": "1", "secsgml_size_bytes": 94864}]
{"company-data": {"conformed-name": "MALLINCKRODT GROUP INC", "cik": "0000051396", "assigned-sic": "2834", "irs-number": "361263901", "state-of-incorporation": "NY", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-00483", "film-number": "95572054"}, "business-address": {"street1": "7733 FORSYTH BLVD", "city": "ST LOUIS", "state": "MO", "zip": "63105", "phone": "3148545299"}, "mail-address": {"street1": "7733 FORSYTH BLVD", "city": "ST LOUIS", "state": "MO", "zip": "63105"}, "former-company": [{"former-conformed-name": "IMCERA GROUP INC", "date-changed": "19920703"}, {"former-conformed-name": "INTERNATIONAL MINERALS & CHEMICAL CORP", "date-changed": "19900614"}]}
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                                  
                                  
                                  
                      Washington, D.C.  20549
                                  
                                  
                                  
                              FORM 8-K
                                  
                                  
                           CURRENT REPORT
                                  
                                  
                                  
               Pursuant to Section 13 or 15(d) of the
                  Securities Exchange Act of 1934
                                  
                                  
                                  
                         September 8, 1995
                                  
                                  
                                  
                                  
                      Mallinckrodt Group Inc.
       (Exact name of registrant as specified in its charter)
                                  
                                  
                                  

           New York                  1-483            36-1263901
(State or other jurisdiction      (Commission      (I.R.S. Employer
of incorporation or organization)  File Number)   Identification No.)
   

 7733 Forsyth Boulevard, St. Louis, MO                63105-1820
(Address of principal executive offices)              (ZIP Code)

Registrant's telephone number,                      (314) 854-5200
   including area code
Item 5.  Other Events

Management's Discussion and Analysis and financial information for the
fiscal year ended June 30, 1995 follows:

MALLINCKRODT MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.

OVERVIEW

1995 vs. 1994
-------------

Mallinckrodt's 1995 earnings from continuing operations were $184
million, or $2.37 per share.  These results, compared with 1994
earnings from continuing operations, excluding a restructuring charge
and minor non-recurring adjustments, were up 13 percent.

Net earnings for 1995 were $180 million, or $2.32 per share, compared
with $104 million, or $1.33 per share, in 1994.  Included in the prior
year results was an after-tax restructuring charge totaling $59
million, or $.76 per share.

Net sales increased 14 percent to $2.2 billion, compared to $1.9
billion last year.  Operating earnings for 1995 were $329 million, up
15 percent over comparable 1994 results excluding the restructuring
charge.  Each of Mallinckrodt's three businesses contributed to sales
and earnings growth in 1995.  

Restructuring charges are discussed in the business sections which
follow, and in Note 1 of Notes to Consolidated Financial Statements
(Notes). Charges for discontinued operations are discussed in Note 1
of the Notes.

1994 vs. 1993
-------------

Before a restructuring charge Mallinckrodt's 1994 earnings from
continuing operations were $166 million, or $2.14 per share.
Comparable 1993 earnings from continuing operations were $128 million,
or $1.65 per share. After further excluding favorable 1994 tax
adjustments totaling $3 million, or $.04 per share, from tax law
changes and a 1993 non-recurring corporate expense charge of $3
million after taxes, or $.04 per share, 1994 results were 24 percent
higher than those of 1993.

Net earnings for 1994 were $104 million, or $1.33 per share, compared
with a net loss of $200 million, or $2.60 per share, in 1993. Included
in these results were after-tax restructuring charges totaling
$59 million, or $.76 per share, and $242 million, or $3.13 per share,
for 1994 and 1993, respectively. The loss in 1993 also included a
noncash cumulative charge of $81 million, or $1.04 per share, for
adoption of new standards of accounting for income taxes and certain
postretirement/postemployment benefits.

Net sales for 1994 were $1.9 billion, compared with $1.8 billion in
1993. This 8 percent increase was achieved despite slower volume
growth and pricing pressures. Each of Mallinckrodt's three businesses
reported improved operating results for 1994. Operating earnings
before the restructuring charges were $287 million in 1994, compared
with $225 million in 1993.  Excluding the 1993 non-recurring corporate
expense charge, operating earnings were up 24 percent.
MALLINCKRODT CHEMICAL
Years ended June 30,
                                             --------------------
                                             1995    1994    1993
                                             ----    ----    ----
                                                 (in millions)
Net sales:
  Catalysts, Performance & Lab Chemicals     $318    $212    $183
  Pharmaceutical Specialties                  259     225     212
                                             ----    ----    ----
                                             $577    $437    $395

Operating earnings (loss):
  Ongoing operations                         $ 69    $ 62    $ 46
  Restructuring charge                                        (51)
                                             ----    ----    -----
                                               69      62      (5)
Pre-tax equity in joint venture                25      18      10
                                             ----    ----    -----
Earnings                                     $ 94    $ 80    $  5
                                             ====    ====    ====

Ongoing operating earnings as a 
  percent of sales                           11.9%   14.1%   11.6%
(/TABLE>

1995 vs. 1994
-------------

Mallinckrodt Chemical achieved earnings of $94 million, including a
$25 million pre-tax equity-investment share of earnings from
Tastemaker, the flavors joint venture.  This represented a 17 percent
earnings improvement over the prior year.  Net sales increased 32
percent to $577 million.  The 1993 restructuring program was
substantially completed during 1995, with the exit of the
photochemicals business.

Catalysts, performance and lab chemicals made a significant
contribution to 1995 results with a 50 percent increase in sales. 
Results benefited from the acquisition of Catalyst Resources, Inc. in
March 1994 and the reclassification of a small specialty chemical
business to continuing operations.  The acquisition of J.T. Baker in
February 1995 enhanced sales performance, but modestly impaired
operating earnings through normal acquisition accounting adjustments. 
Management expects J.T. Baker to contribute to sales and earnings
growth in 1996.  Worldwide strength in the existing catalysts business
also contributed favorably to the sales and earnings improvements in
1995.

Pharmaceutical specialties sales improved 15 percent.  Continued
strength in sales volume for medicinal narcotics was the main
contributor to the increase.  Higher worldwide acetaminophen (APAP)
sales volume, improved plant performance in Raleigh, North Carolina,
and higher sales in peptides also provided favorable benefits in 1995.

Earnings results for Tastemaker increased 37 percent to $25 million
due to strong worldwide sales growth and continued manufacturing cost
improvements.

1994 vs. 1993
-------------

Mallinckrodt Chemical's 1994 operating earnings of $62 million and an
$18 million pre-tax equity-investment share of earnings from its
Tastemaker flavors joint venture totaled $80 million. Excluding the
1993 restructuring charge, this represented a 42 percent earnings
improvement over 1993. Net sales increased 11 percent to $437 million.
The 1993 restructuring program is producing anticipated results with
the exit of the aromatic flourine intermediates business substantially
completed in 1994.

Catalysts, performance and lab chemicals sales increased 15 percent,
principally from higher sales volume in catalysts and performance
chemicals. Improved plant operations in performance chemicals and
favorable comparisons in restructured businesses also contributed to
higher operating earnings in 1994. 

Pharmaceutical specialties sales increased 6 percent. Contributing
significantly to improved operating results were higher worldwide
medicinal narcotics sales primarily due to increased sales volume and
improved medicinal narcotics plant operations. Results for 1994 were
negatively affected by a scheduled Raleigh, North Carolina, plant
maintenance shutdown in the first quarter, additional investment in
the peptides business and flat APAP worldwide sales compared with
1993.

The Tastemaker flavors joint venture made a significant contribution
to the 1994 results with a 75 percent increase in earnings due to
strong worldwide growth and efficiencies from manufacturing
consolidation programs completed in 1993.
MALLINCKRODT MEDICAL
Years ended June 30,
                                          --------------------
                                          1995    1994    1993
                                          ----    ----    ----
                                              (in millions)
Net sales:
  Imaging                                 $  688  $622    $564
  Anesthesiology & Critical Care             324   290     219
                                          ------  ----    ----
                                          $1,012  $912    $783
                                          ======  ====    ====
Operating earnings (loss):
  Ongoing operations                      $  228  $203    $174
  Restructuring charge                             (74)
                                          ------  -----   ----
                                          $  228  $129    $174
                                          ======  =====   ====
Ongoing operating earnings as a
  percent of sales                         22.6%  22.2%   22.3%
1995 vs. 1994
-------------

Mallinckrodt Medical's operating earnings were $228 million, up 13
percent, excluding the prior year restructuring charge.  Net sales
reached $1.0 billion, an increase of 11 percent from $912 million the
year before.  

Contributing to the improved operating earnings were results of
actions related to the restructuring program begun last year.  Such
actions included reorganization of the U.S. sales structure and non-
sales related functions and management processes, relocation costs for
manufacturing operations and a workforce reduction of approximately
600 positions, of which 500 was contemplated in the 1994 restructure
plan.  The restructuring program is on track and is producing
anticipated results.  Annual pre-tax savings from the restructuring
will be approximately $40 million, with about $11 million achieved in
1995 and the rest to be achieved in 1996.  Pre-tax cash expenditures
should approximate the original estimate of $65 million.

Imaging sales increased 11 percent, benefiting principally from higher
worldwide sales volume of the X-ray contrast medium Optiray*,
partially offset by pricing pressures in the U.S.  Increased U.S.
sales volume of TechneScan MAG3*, the introduction of OctreoScan* and
higher sales of nuclear medicine products in Europe due to growth in
existing markets, also contributed to the improved results.  Albunex*
was introduced through a controlled launch in 1995 giving Medical the
first ultrasound contrast media product in the U.S. market.  Market
penetration has been slower than initial expectations; however,
management expects ultrasound contrast media to be a very significant
growth opportunity for the company.

Anesthesiology and critical care sales were up 11 percent for the
year, boosted by the September 1994 acquisition of DAR S.p.A., higher
anesthesia product sales in Europe and Japan and increased sales
volume of hemoglobin testing products in the U.S. and Europe. 
Management expects the June 1995 acquisition of Alton Dean, Inc., a
manufacturer of products that warm sterile intravenous and irrigation
solutions used during and after surgery, to contribute to future
results.

1994 vs. 1993
-------------

Mallinckrodt Medical's 1994 net sales were $912 million and operating
earnings before a restructuring charge were $203 million, both up 16
percent from 1993.

The 1994 pre-tax restructuring charge of $74 million resulted from
fourth quarter decisions made pursuant to efforts conducted to develop
strategies to effectively respond to customer needs and compete in a
market that is changing rapidly as the result of health care reform.
The key components of the charge were reorganization of the current
medical specialty oriented U.S. sales structure into a unified sales
organization divided into geographical districts; reorganization to
reduce, centralize and standardize certain non-sales related functions
and management processes; relocation of the Argyle, New York,
endotracheal tube manufacturing operations to existing plants in
Athlone, Ireland, and Irvine, California, and a new facility under
construction in Juarez, Mexico; and severance costs related to an
associated workforce reduction of approximately 500 employees at
various locations around the world. 

Imaging sales increased 10 percent.  Higher Optiray sales volume in
the U.S., Japan and Europe and increased catheter sales volume were
the primary contributors to the improvement. The earnings effect of
the higher sales was partially offset by higher standard product costs
associated with the new Ireland Ioversol production facility and
pricing pressures related to Optiray.  The Optiray production capacity
expansions underway in 1993 were essentially complete.  Higher sales
volume in the U.S. and Europe associated with thallium and TechneScan
MAG3 were partially offset by unfavorable foreign exchange rates and
price pressures. In June 1994, OctreoScan, a radiopharmaceutical used
to aid diagnosis of certain cancer tumors, received FDA approval. 
Management received approval of Albunex, its ultrasound contrast agent
in August 1994.

Strong results for the anesthesiology and critical care business were
a significant factor in the overall year-to-year comparison. Sales
increased 32 percent. Newly acquired businesses and improved U.S.
sales associated with HemoCue as a result of hemoglobin products
receiving waiver status contributed to the improvement. Operating
earnings increases were partially offset by unfavorable year-to-year
foreign currency effects and amortization of intangibles related to
acquisitions.

MALLINCKRODT VETERINARY
Years ended June 30,
                                             --------------------
                                             1995    1994    1993
                                                 (in millions)
Net sales:
  Animal Health                              $455    $430   $449
  Feed Ingredients                            169     162    169
                                             ----    ----    ----
                                             $624    $592   $618
                                             ====    ====   ====

Operating earnings (loss):
  Ongoing operations                         $ 61    $ 53   $ 40
  Restructuring charge                                (20)  (283)
                                             ----    -----  -----
                                             $ 61    $ 33   $(243)
                                             ====    =====  ======
Ongoing operating earnings as a 
  percent of sales                           9.8%     8.9%   6.5%
1995 vs. 1994
-------------

Mallinckrodt Veterinary's operating earnings were $61 million, up 16
percent, excluding the prior year restructuring charge.  Net sales
were $624 million, up 5 percent compared to $592 million the prior
year.  Contributing to the improved operating earnings were improved
sales volumes in Europe, favorable currency effects, principally in
Europe and Latin America, and the favorable impacts of actions related
to the restructuring program begun in 1993, which included various
cost control measures, plant closures and a workforce reduction of
approximately 1,000 employees.

Animal health sales increased 6 percent for the year.  Sales volume
growth was highest in Europe due to increases across all major product
lines.  Sales in Asia improved primarily from higher volumes of
biological products.

Feed ingredients sales were up 4 percent compared to the prior year,
due to strong volume gains and favorable price variances in the fourth
quarter.

Veterinary will build on the strength of its recently completed
management team to focus on future growth and earnings improvement.

1994 vs. 1993
-------------

Mallinckrodt Veterinary's 1994 operating earnings of $33 million
included a pre-tax restructuring charge of $20 million to adjust a
1993 provision associated with the decision to discontinue development
of porcine somatotropin (PST) in May 1993. This adjustment effectively
removed all remaining PST valuation risk.

Excluding restructuring charges in both years, Mallinckrodt
Veterinary's 1994 operating earnings increased 31 percent compared to
1993 on a sales decline of 4 percent. Improved operating earnings
resulted from actions related to the restructuring program begun in
1993, which included various cost control measures, plant closures and
a workforce reduction of approximately 1,000 employees.  Lower sales
resulted primarily from global product rationalization programs
designed to eliminate low margin products and from unfavorable
currency translation effects.

Animal health sales for 1994 decreased 4 percent.  Product
rationalization programs, biological supply and production problems,
lower volumes of companion animal vaccine sales in North America and
unfavorable currency translation effects were the primary reasons for
the decrease.  Partially offsetting the decrease were strong sales of
parasiticides in Europe, higher sales volume in Brazil resulting from
expanded distribution rights and improved foot and mouth disease
vaccine sales, increased sales volumes in Latin America and increased
sales of growth promotants in North America. 

Feed ingredients sales declined 4 percent from 1993 due to price
deterioration on lower U.S. sales volume.

CORPORATE MATTERS

Corporate expense decreased $1 million to $29 million in 1995.  This
favorable variance reflected last year's corporate headquarters
reorganization and relocation.

Interest and other nonoperating income (expense), net declined $4
million in 1995 from 1994.  This decrease related primarily to the
write-down of an investment and hedging losses.

Interest expense increased $16 million in 1995 from increased
borrowings and higher interest rates.

Mallinckrodt's effective tax rate for continuing operations was 37.5
percent in 1995, compared with 38.5 percent in 1994, excluding the
impact of the restructuring charge and statutory rate changes.  See
Note 9 of the Notes for further discussion of income taxes.
 
FINANCIAL CONDITION

Financial resources available to the Company are expected to continue
to be adequate to support existing businesses, fund the remaining cash
expenditures of approximately $139 million for the restructuring
programs and fund new opportunities. Since June 30, 1994, cash and
cash equivalents decreased $26 million. Operations provided
$285 million of cash, while acquisition and capital spending totaled
$272 million, $91 million of which related to the acquisition of J.T.
Baker Inc. and $8 million related to the acquisition of Alton Dean,
Inc.  The Company's current ratio at June 30, 1995, was 1.4:1. Total
debt as a percentage of invested capital was 37 percent.

The Company's Board of Directors previously authorized repurchase of a
total of 42 million shares of its common stock. Twenty-nine million
shares have been purchased under this authorization, .5 million during
the year ended June 30, 1995.

On April 8, 1992, a shelf registration statement was filed with the
Securities and Exchange Commission (SEC) for $250 million of debt
securities.  As of June 30, 1995, $50 million of securities under the
shelf remain unissued.  On February 15, 1995, a shelf registration
statement was filed with the SEC for $250 million of debt securities,
all on terms to be determined at the time of the actual offerings for
sale.  No offerings have occurred.  Net proceeds from the sale of any
debt securities would be used for general corporate purposes, except
as noted in any prospectus supplement.

The Company has a $450 million private-placement commercial paper
program.  This program is backed by $650 million of U.S. lines of
credit, $100 million available until March 1996 and $550 million
available until November 1999.   At June 30, 1995, commercial paper
borrowings and borrowings under the U.S. credit lines amounted to $153
million and $90 million, respectively.  At June 30, 1995, non-U.S.
lines of credit totaling $263 million were also available and
borrowings under these lines were $36 million. The non-U.S. lines can
be cancelled at any time.

Estimated capital spending for the fiscal year ending June 30, 1996,
is approximately $200 million.

OTHER MATTERS

The Company does not consider the present rate of inflation to have a
significant impact on the businesses in which it operates except for
the hyperinflationary effects on the Latin American businesses of
Mallinckrodt Veterinary which are reported in Note 17 of the Notes.

See Note 20 of the Notes for a discussion of environmental matters.

         THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Auditors . . . . . . . . . . . . . . . 9
Information by Business Segment. . . . . . . . . . . . . . .10
Consolidated Statement of Operations . . . . . . . . . . . .11
Consolidated Balance Sheet . . . . . . . . . . . . . . . . .12
Consolidated Statement of Cash Flows . . . . . . . . . . . .13
Consolidated Statement of Changes in Shareholders' Equity. .14
Notes to Consolidated Financial Statements . . . . . . . . .15
Quarterly Results. . . . . . . . . . . . . . . . . . . . . .29
REPORT OF INDEPENDENT AUDITORS

To the Shareholders and Board of Directors of Mallinckrodt Group Inc.

We have audited the accompanying consolidated balance sheet of
Mallinckrodt Group Inc. as of June 30, 1995 and 1994, and the related
consolidated statements of operations, changes in shareholders' equity
and cash flows for each of the three years in the period ended
June 30, 1995, appearing on pages 10 through 28. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position
of Mallinckrodt Group Inc. at June 30, 1995 and 1994, and the
consolidated results of its operations and its cash flows for each of
the three years in the period ended June 30, 1995, in conformity with
generally accepted accounting principles. 

As discussed in Significant Accounting Policies to the consolidated
financial statements, in 1993 the Company changed its method of
accounting for income taxes and employee benefits.

Ernst & Young LLP
St. Louis, Missouri
August 8, 1995
INFORMATION BY BUSINESS SEGMENT

NET SALES
(In millions)
1995       1994      1993
Mallinckrodt Chemical. . . . . . . . . . . . . . $  576.8   $  436.9  $  395.3
Mallinckrodt Medical . . . . . . . . . . . . . .  1,011.8      912.3     783.1
Mallinckrodt Veterinary. . . . . . . . . . . . .    623.8      591.7     618.1
Intersegment sales . . . . . . . . . . . . . . .      (.3)       (.8)      (.2)
                                                 ---------  --------- ---------
  Consolidated . . . . . . . . . . . . . . . . . $2,212.1    $1,940.1 $1,796.3
EARNINGS AND ASSETS
(In millions)
Earnings (Loss) from
                         Continuing Operations
                          Before Income Taxes            Identifiable Assets
                       ------------------------- --------------------------------
                        1995     1994     1993       1995       1994       1993
                        ----     ----     ----       ----       ----       ----
Mallinckrodt Chemical..$ 68.5   $ 61.7   $ (5.4)   $  800.4   $  595.1   $  468.2
Mallinckrodt Medical... 228.2    128.9    174.4     1,185.0    1,102.4      906.5
Mallinckrodt Veterinary  61.0     32.6   (242.5)      745.5      709.5      698.0
Corporate.............. (28.8)   (30.2)   (35.5)      113.3      143.4      188.3
Eliminations...........             .1               (123.6)    (116.9)     (83.4)
                       -------  -------  -------   ---------  ---------  ---------
Operating earnings
  (loss)............... 328.9    193.1   (109.0)
Equity in pre-tax
  earnings of joint
  venture..............  25.3     18.5     10.6
Interest and other
  nonoperating income
  (expense), net.......  (4.2)     (.4)     2.6
Interest expense....... (55.4)   (39.8)   (37.3)
                       -------  -------  -------   ---------  ---------  ---------
Consolidated...........$294.6   $171.4   $(133.1)  $2,720.6   $2,433.5   $2,177.6
                       ======   ======   ========  ========   ========   ========
PROPERTY, PLANT AND EQUIPMENT
(In millions)
Capital Expenditures       Depreciation and Amortization
                       ------------------------    -------------------------------
                       1995      1994      1993      1995      1994        1993
Mallinckrodt Chemical..$ 41.8   $ 41.6   $ 46.2    $ 36.7     $ 26.4     $ 28.0
Mallinckrodt Medical...  85.2     99.4     95.0      58.7       47.8       37.1
Mallinckrodt Veterinary  31.2     28.1     45.9      28.0       27.9       28.8
Corporate..............   2.6      3.2      1.2       1.6        2.5        2.2
                       ------   ------   ------    ------     ------     ------
  Consolidated.........$160.8   $172.3   $188.3    $125.0     $104.6     $ 96.1
                       ======   ======   ======    ======     ======
(See Note 18 of the Notes to Consolidated Financial Statements.)
CONSOLIDATED STATEMENT OF OPERATIONS
(In millions except per share amounts)
Years Ended June 30,
                                                  ----------------------------
                                                    1995      1994      1993
                                                  --------  --------  --------
Net sales.........................................$2,212.1  $1,940.1  $1,796.3
Operating costs and expenses:
  Cost of goods sold.............................. 1,215.2   1,037.3     970.6
  Selling, administrative and general expenses....   577.3     522.0     511.2
  Research and development expenses...............    97.8      95.3      95.3
  Restructuring charge............................              93.9     334.1
  Other operating income, net.....................    (7.1)     (1.5)     (5.9)
                                                  --------- --------- ---------
Total operating costs and expenses................ 1,883.2   1,747.0   1,905.3
                                                  --------- --------- ---------
  Operating earnings (loss).......................   328.9     193.1    (109.0)
Equity in pre-tax earnings of joint venture.......    25.3      18.5      10.6
Interest and other nonoperating income (expense),
  net.............................................    (4.2)      (.4)      2.6
Interest expense..................................   (55.4)    (39.8)    (37.3)
                                                  --------- --------- ---------
  Earnings (loss) from continuing operations
    before income taxes...........................   294.6     171.4    (133.1)
Income tax provision (benefit)....................   110.5      64.0     (19.3)
                                                  --------- --------- ---------
  Earnings (loss) from continuing operations......   184.1     107.4    (113.8)
Loss from discontinued operations.................    (3.8)     (3.6)     (6.0)
                                                  --------- --------- ---------
  Earnings (loss) before cumulative effect
    of accounting change..........................   180.3     103.8    (119.8)
Cumulative effect of accounting changes...........                       (80.6)
                                                  --------- --------- ---------
  Net earnings (loss).............................   180.3     103.8    (200.4)
Preferred stock dividends.........................     (.4)      (.4)      (.4)
                                                  --------- --------- ---------
  Available for common shareholders...............$  179.9  $  103.4  $ (200.8)
                                                  ========= ========= =========
(/TABLE)
EARNINGS (LOSS) PER COMMON SHARE
Continuing operations............................. $2.37      $1.38     $(1.48)
Discontinued operations...........................  (.05)      (.05)      (.08)
                                                   ------     ------    -------
Earnings (loss) before cumulative effect of
  accounting changes..............................  2.32       1.33      (1.56)
Cumulative effect of accounting changes...........                       (1.04)
                                                   ------     ------    -------
Net earnings (loss)............................... $2.32      $1.33     $(2.60)
                                                   ======     ======    =======
(The accompanying Notes are an integral part of the Consolidated Financial
Statements.)
CONSOLIDATED BALANCE SHEET
(In millions except share and per share amounts)
At June 30,
                                                            ------------------
                                                              1995      1994
                                                            --------  --------
ASSETS
Current assets:
  Cash and cash equivalents.................................$   61.7  $   87.9
  Trade receivables, less allowances of $13.5 in 1995 and
    $11.1 in 1994...........................................   414.5     343.6

  Inventories...............................................   433.8     376.9
  Deferred income taxes.....................................    53.1      77.6
  Other current assets......................................    57.0      46.0
                                                            --------  --------
Total current assets........................................ 1,020.1     932.0
Investments and long-term receivables, less allowances
  of $17.0 in 1995 and $13.1 in 1994........................   165.5     147.0
Property, plant and equipment, net.......................... 1,005.6     863.2
Intangible assets...........................................   528.7     489.3
Deferred income taxes.......................................      .7       2.0
                                                            --------  --------
Total assets................................................$2,720.6  $2,433.5
                                                            ========  =========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Short-term debt...........................................$  197.5  $  147.8
  Accounts payable..........................................   191.0     139.4
  Accrued liabilities.......................................   349.4     356.0
  Income taxes payable......................................     7.7      25.4
  Deferred income taxes.....................................     2.7       2.1
                                                            --------  --------
Total current liabilities...................................   748.3     670.7
Long-term debt, less current maturities.....................   501.5     522.0
Deferred income taxes.......................................    76.8      36.6
Postretirement benefits.....................................   142.7     124.7
Other noncurrent liabilities and deferred credits...........    79.8      63.6
                                                            --------  --------
Total liabilities........................................... 1,549.1   1,417.6
                                                            --------  --------
Shareholders' equity:
  4 Percent cumulative preferred stock......................    11.0      11.0
  Common stock, par value $1, authorized 300,000,000
    shares; issued 87,116,289 shares in 1995 and 1994.......    87.1      87.1
  Capital in excess of par value............................   274.1     268.2
  Reinvested earnings.......................................   984.5     846.4
  Foreign currency translation..............................    (9.3)    (34.2)
  Treasury stock, at cost...................................  (175.9)   (162.6)
                                                             -------- ---------
Total shareholders' equity..................................  1,171.5  1,015.9
                                                             -------- ---------
Total liabilities and shareholders' equity.................. $2,720.6 $2,433.5
                                                             ======== ========
(The accompanying Notes are an integral part of the Consolidated Financial
Statements.)
CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Years ended June 30,
                                                   ---------------------------
                                                     1995      1994     1993
                                                   -------   -------  --------
CASH FLOWS - OPERATING ACTIVITIES
Net earnings (loss)............................... $180.3   $103.8   $(200.4)
Adjustments to reconcile net earnings (loss)
  to net cash provided by operating activities:
  Depreciation and amortization...................  125.0    104.6      96.1
  Restructuring charge............................            93.0     312.6
  Cumulative effect of accounting changes.........                      80.6
  Postretirement benefits.........................   12.1      8.3       7.1
  Undistributed equity in earnings of joint venture (19.1)   (14.4)     (7.7)
  Deferred income taxes...........................   66.6     (5.2)    (60.6)
  Other, net......................................   (4.0)    (7.6)    (53.1)
                                                   -------  -------  --------
                                                    360.9    282.5     174.6
  Changes in noncash operating working capital:
    Accounts receivable...........................  (44.1)   (12.6)      9.7
    Inventories...................................  (16.3)   (11.4)    (11.1)
    Accounts payable, accrued liabilities and
      income taxes, net...........................  (12.8)   (32.1)    (37.6)
    Other, net....................................   (3.2)      .9       1.0
                                                   -------  -------  --------
Net cash provided by operating activities.........  284.5    227.3     136.6
                                                   -------  -------  --------
CASH FLOWS - INVESTING ACTIVITIES
Capital expenditures.............................. (160.8)  (172.3)   (188.3)
Acquisition spending.............................. (111.5)   (95.5)   (201.2)
IFL dividend receivable...........................            51.9
Proceeds from asset disposals.....................   21.2      8.6      19.9
Other, net........................................  (22.8)     7.2     (15.6)
                                                   -------  -------  --------
Net cash used by investing activities............. (273.9)  (200.1)   (385.2)
                                                   -------  -------  --------

CASH FLOWS - FINANCING ACTIVITIES
Increase (decrease) in short-term debt............   19.9    (58.6)     71.4
Proceeds from long-term debt......................    3.2    196.4     193.3
Payments on long-term debt........................  (10.3)  (101.6)    (11.1)
Issuance of Mallinckrodt common stock.............    8.0     10.9      17.9
Acquisition of treasury stock.....................  (15.4)              (6.5)
Dividends paid....................................  (42.2)   (37.7)    (33.2)
                                                   -------  -------  --------
Net cash provided (used) by financing activities..  (36.8)     9.4      231.8
                                                   -------  -------  --------
Increase (decrease) in cash and cash equivalents..  (26.2)    36.6      (16.8)
Cash and cash equivalents at beginning of period..   87.9     51.3       68.1
                                                   -------  -------  ---------
Cash and cash equivalents at end of period........ $ 61.7   $ 87.9   $   51.3
                                                   =======  =======  =========
(The accompanying Notes are an integral part of the Consolidated Financial
Statements.)
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(In millions except per share amounts)
Capital in
                       Preferred  Common  Excess of  Reinvested         Treasury
                         Stock    Stock   Par Value   Earnings  Other    Stock
                        --------- ------- ---------- ---------- ------ ---------
BALANCE, JUNE 30, 1992.. $ 11.0   $ 87.1    $ 253.1    $1,013.9  $ 37.3  $(178.2)
Net loss................                                 (200.4)
Dividends:
  4 Percent cumulative
    preferred stock
    ($4.00 a share).....                                    (.4)
  Common stock ($.43 a
  share)................                                  (32.8)
Stock option exercises..                        7.1                        10.8
Acquisition of treasury
  stock.................                                                   (6.5)
Translation adjustment..                                          (95.9)
Other...................                        2.2                         2.2
                         ------   ------    -------    --------  -------  -------
BALANCE, JUNE 30, 1993..   11.0     87.1      262.4       780.3   (58.6)  (171.7)
Net earnings............                                  103.8
Dividends:
  4 Percent cumulative
    preferred stock
    ($4.00 a share).....                                    (.4)
  Common stock ($.485 a
    share)..............                                  (37.3)
Stock option exercises..                        4.0                          6.9
Translation adjustment..                                           24.4
Other...................                        1.8                          2.2
                         ------   ------    -------    --------  -------  -------
BALANCE, JUNE 30, 1994..   11.0     87.1      268.2       846.4   (34.2)  (162.6)
Net earnings............                                  180.3
Dividends:
  4 Percent cumulative
    preferred stock
    ($4.00 a share)....                                     (.4)
Common stock ($.545 a
  share)...............                                   (41.8)
Stock option exercises.                         2.0                          6.2
Acquisition of treasury
  stock................                                                    (15.4)
Translation adjustment.                                            24.9
Other.............                              3.9                         (4.1)
                         ------   ------    -------    --------  -------  -------
BALANCE, JUNE 30, 1995.  $ 11.0   $ 87.1    $ 274.1    $  984.5  $ (9.3)  $(175.9)
                         ======   ======    =======    ========  =======  ========
(The accompanying Notes are an integral part of the Consolidated Financial
Statements.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In millions except per share amounts)

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Financial statements of all majority owned subsidiaries are
consolidated.  Investments in 20 to 50 percent owned affiliates are
reported on the equity method.

Accounting Changes

In the fourth quarter of 1993, Mallinckrodt adopted Statements of
Financial Accounting Standards (FAS) No. 106 "Employers' Accounting
for Postretirement Benefits Other Than Pensions,"  FAS No. 109
"Accounting for Income Taxes" and FAS No. 112 "Employers' Accounting
for Postemployment Benefits," all retroactive to July 1, 1992.  The
cumulative effects of these accounting changes at July 1, 1992
pertaining to years prior to 1993 follow:

                          Amount    Per Share
                          ------    ---------
          FAS No. 106     $63.0      $ .81
          FAS No. 109      16.5        .21
          FAS No. 112       1.1        .02
                          -----      ------
          Total           $80.6      $1.04
                          =====      ======

Foreign Currency Translation

The financial statements of most of the Company's international
affiliates are translated into U.S. dollars using current exchange
rates for balance sheets and weighted average rates for income
statements.   Unrealized translation adjustments are included in
shareholders' equity in the Consolidated Balance Sheet.  

The financial statements of international affiliates that operate in
hyperinflationary economies, principally Brazil, are translated at
either current or historical exchange rates, as appropriate. 
Unrealized translation adjustments are included in operating results
for these affiliates.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of certificates of
deposit, time deposits and other short-term securities with maturities
of three months or less from the date of purchase.

Inventories

Inventories are valued at the lower of cost or market. Cost for
inventories is determined on either an average or first-in, first-out
basis.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation is
based upon estimated useful lives of 15 to 45 years for buildings and
4 to 15 years for machinery and equipment, using principally the
straight-line method. 

Derivative Financial Instruments

The Company hedges a significant portion of its foreign exchange
exposure using certain derivative financial instruments, primarily
forward contracts, currency swaps and purchased options.  Forward
contracts and currency swaps are carried off-balance-sheet with gains
and losses included in the measurement and recording of the
hedged transactions.  Premiums on purchased options are recorded as
assets and amortized to match the anticipated cash flows being hedged. 
See also Note 8.

Advertising Costs

All advertising costs are expensed as incurred and included in
selling, general and administrative expenses.  Advertising expense was
$41.2 million, $35.1 million and $41.7 million in 1995, 1994 and 1993,
respectively.

Reclassifications

Certain amounts in prior years have been reclassified to conform to
the current year presentation.

NOTE 1:  CHANGES IN BUSINESS

RESTRUCTURING PROGRAMS

In the fourth quarter of 1994, the Company recorded a restructuring
charge of $93.9 million, $58.8 million after taxes, or $.76 per share,
relating to Mallinckrodt Medical and Mallinckrodt Veterinary.
Restructuring actions related to the program are on track and
achieving anticipated results at June 30, 1995.  The Mallinckrodt
Medical pre-tax restructuring charge of $73.9 million included the
reorganization of the current medical specialty oriented U.S. sales
structure into a unified organization divided into geographical
districts; reorganization to reduce, centralize and standardize
certain non-sales related functions and management processes;
rationalization of manufacturing operations for substantial worldwide
cost and sourcing improvements; and severance costs related to an
associated workforce reduction. Pre-tax cash expenditures for this
restructuring are expected to approximate the original estimate of $65
million, consisting of $28 million for severance costs for about 500
people at various locations around the world, $15 million for
consulting, $13 million for manufacturing rationalization and $9
million for other items. The $9 million noncash pre-tax portion of the
charge primarily related to manufacturing rationalization. 
Approximately $26 million of cash expenditures were incurred through
June 30, 1995, the majority of which related to severance associated
with a workforce reduction of approximately 500 people and consulting
costs.  The majority of the remaining cash expenditures of $39 million
will be paid in 1996 and relate to severance for terminated employees
and consulting costs.  Based on the expenditures to date and those
anticipated by the original plan, no significant adjustment to the
reserve balance is expected at this time.  Also included in the
restructuring charge was a $20 million pre-tax charge to adjust
a prior year provision associated with Mallinckrodt Veterinary's
decision to discontinue development of porcine somatotropin (PST) in
May 1993.

In the fourth quarter of 1993, the Company recorded a restructuring
charge of $334.1 million, $242.2 million after taxes, or $3.13 per
share relating to Mallinckrodt Veterinary and Mallinckrodt Chemical.
Restructuring actions related to the program are substantially
complete at June 30, 1995.  Pre-tax cash expenditures for
restructuring charges are expected to approximate the original
estimate of $173 million and are primarily related to severance costs
of $54 million, lease costs related to a closed facility of $55
million, consulting costs of $15 million, and manufacturing
rationalization and other costs of $49 million.  The $161 million
noncash portion of the charges primarily related to the write-off of
plant facilities.  Approximately $73 million of the cash expenditures
were incurred through June 30, 1995, the majority of which related to
severance for a workforce reduction of approximately 1,000 people and
consulting costs.  The majority of the remaining cash expenditures of
approximately $100 million relate to manufacturing rationalization to
be paid in 1996 and the present value of long-term lease payments. 
Based on the expenditures to date and those anticipated by the
original plan, no significant adjustment to the reserve balance is
expected at this time.

The Mallinckrodt Veterinary 1993 pre-tax restructuring charge of
$282.8 million included the discontinuance of the development of PST,
including manufacturing and support facilities; closure and
consolidation of manufacturing and other distribution and support
facilities; redefinition and reorganization of research and
development, commercial and administrative functions; exit of certain
animal health businesses; and severance costs related to a workforce
reduction of approximately 1,000 employees.

As part of the 1993 program, Mallinckrodt Chemical also recorded a
pre-tax charge of $51.3 million, primarily to close its aromatic
fluorine intermediates business and to sell its photochemical
business.  The restructuring charge included approximately
$40 million for write-down of carrying value of plant facilities and
$11 million of cash expenditures.

ACQUISITIONS

In June 1995, Mallinckrodt Medical acquired Alton Dean, Inc., a
manufacturer of products that warm sterile intravenous and irrigation
solutions used during and after surgery for $8.5 million.

In February 1995, Mallinckrodt Chemical acquired J.T. Baker Inc., a
manufacturer of laboratory, process and microelectronic chemicals for
$95.0 million.  

In March 1994, Mallinckrodt Chemical acquired Catalyst Resources,
Inc., a manufacturer of polymerization and chemical catalysts for
$61.2 million, and in September 1993, Mallinckrodt Medical acquired
DAR S.p.A., a manufacturer of anesthesiology and respiratory care
products for $28.0 million. 

In September 1992, Mallinckrodt Medical acquired the businesses of
HemoCue Intressenter, A.B., a manufacturer of point-of-care blood
chemistry systems, and in February 1993, the tracheostomy products
business of Sorin Biomedical, Inc. The cost of these acquisitions,
including acquisition accruals, totaled $198.0 million. 

The above acquisitions were accounted for as purchases and results of
operations were included in the consolidated financial statements from
their respective acquisition dates.  Results of operations for the
periods prior to acquisition were not material to Mallinckrodt.

DISCONTINUED OPERATIONS

The discontinued operations charges for 1995, 1994, and 1993 primarily
included environmental and related litigation costs related to
operations previously disposed.

NOTE 2:  EARNINGS PER COMMON SHARE

Earnings per common share amounts were computed on the basis of the
weighted average number of common and common equivalent shares
outstanding. Such weighted average shares used in the computations
were 77,458,114 in 1995; 77,607,416 in 1994 and 77,408,668 in 1993.

NOTE 3:  SUPPLEMENTAL CASH FLOW INFORMATION

                                            1995    1994    1993
                                           -----   -----   -----
Interest paid..............................$47.9   $33.0   $35.8
Income taxes paid.......................... 42.5    37.8    35.1
Noncash investing and financing activities:
  Assumption of liabilities related to 
    acquisitions........................... 42.4    27.9    25.0
  Issuance of common stock for restricted
    stock awards...........................          4.0     4.4

NOTE 4:  INVENTORIES

AT JUNE 30,                                 1995    1994
                                           ------  ------
Raw materials and supplies.................$132.5  $ 99.5
Work in process............................ 102.5    93.1
Finished goods............................. 198.8   184.3
                                           ------  ------
                                           $433.8  $376.9
                                           ======  ======

NOTE 5: INVESTMENTS AND LONG-TERM RECEIVABLES

AT JUNE 30,                                 1995    1994
                                           ------  ------
Tastemaker joint venture...................$ 92.3  $ 74.9
Other investments..........................  21.6    21.4
Other long-term receivables, net...........  51.6    50.7
                                           ------  ------
                                           $165.5  $147.0
                                           ======  ======

NOTE 6:  PROPERTY, PLANT AND EQUIPMENT

AT JUNE 30,                                  1995       1994
                                           ---------  ---------
Land.......................................$   72.1   $   69.3
Buildings and leasehold improvements.......   387.3      352.9
Machinery and equipment.................... 1,013.2      872.4
Construction in progress...................    67.9      101.4
                                           ---------  ---------
                                            1,540.5    1,396.0
Accumulated depreciation..................   (534.9)    (532.8)
                                           ---------  ---------
                                           $1,005.6   $  863.2
                                           =========  =========

Capitalized interest costs were $1.6 million in 1995, $3.7 million in
1994 and $6.3 million in 1993.

NOTE 7:  INTANGIBLE ASSETS

AT JUNE 30,                                 1995    1994
                                           ------  ------
Goodwill and other intangibles.............$575.0  $518.9
Patents and technology.....................  67.0    63.7
                                           ------  ------
                                            642.0   582.6
Accumulated amortization...................(131.6) (111.0)
                                           ------- -------
                                            510.4   471.6
Deferred charges...........................  18.3    17.7
                                           ------- -------
                                           $528.7  $489.3
                                           ======= =======

Identifiable intangible assets are amortized over estimated useful
lives of 8 to 25 years (weighted average life of 12 years) for patents
and technology. Goodwill and other intangibles are amortized primarily
on a straight-line basis over 10 to 40 years (weighted average life of
28 years).

NOTE 8:  FINANCIAL INSTRUMENTS

Derivative Financial Instruments
--------------------------------
In the ordinary course of business, Mallinckrodt purchases materials
and sells finished products denominated in various currencies.  The
Company uses certain derivative financial instruments to manage its
exposure to foreign currency exchange risk, principally forward
foreign exchange contracts, currency swaps and foreign currency
purchased options.  These contracts reduce the Company's overall
exposure to exchange rate fluctuations by effectively fixing the
transaction cost to the Company.  

Carrying and fair values for derivative financial instruments are
summarized below.

                                               At June 30, 1995
                                            ----------------------
                                            Carrying       Fair
                                              Value        Value
                                            --------     ---------
Forward foreign currency contracts and 
  swaps hedging short-term intercompany
  and third-party financing by inter-
  national operations, notional value
  $151.6 million........................     $---        $ (.4)
Forward foreign currency contracts and 
  swaps hedging anticipated cross 
  currency sales and purchases, notional
  value $70.5 million...................      ---           .5
Forward foreign currency options 
  hedging anticipated cross currency 
  sales and purchases, notional value 
  $97.5 million.........................      ---         (2.0)
Interest rate swap, pay fixed rate, 
  receive floating rate, notional value
  $38.2 million.........................      ---          ---

Anticipated transactions include purchases of raw materials or other
inventory, collection of accounts receivable, settlement of accounts
payable, and periodic debt service by international subsidiaries. 
Purchased options and forward foreign exchange contracts generally
have initial terms of less than two years.  Deferred gains and losses
are recognized in income when the underlying transaction is settled.

Fair Value of Financial Instruments
-----------------------------------
Non-derivative financial instruments included in the Consolidated
Balance Sheet are cash, commercial paper and long-term debt.  These
instruments were carried at amounts approximating fair value at June
30, 1995 and 1994. The fair value of long-term debt was estimated
based on future cash flows discounted at current interest rates
available to the Company for debt with similar maturities and
characteristics.

Concentrations of Credit Risk
-----------------------------
Financial instruments which expose Mallinckrodt to credit risk are
short-term investments (cash equivalents), trade receivables and
derivatives.  The Company mitigates the risk that counterparties to
short-term investments and derivatives will fail to perform by
contracting only with major financial institutions having
high credit ratings, and considers the likelihood of counterparty
failure to be remote.

Trade receivables stem from the Company's worldwide operations and
reflect Mallinckrodt's diverse customer base.  The Company
periodically assesses the financial strength of its customers and
obtains proof of credit worthiness, as necessary, prior to extending
credit.  Consequently, Mallinckrodt does not have a material
concentration of credit risk, either by transaction type, product line
or geographic region.

NOTE 9:  INCOME TAXES

In the first quarter of 1994, the Revenue Reconciliation Act of 1993
was signed.  This Act increased the Federal statutory income tax rate
1 percent, to 35 percent, retroactive to January 1, 1993.
Additionally, in the third quarter of 1994 certain foreign (primarily
German and Swedish) tax rates decreased. The net impact of these
rate changes resulted in a non-recurring benefit of $3.0 million in
1994 related to the revaluation of deferred taxes in accordance with
FAS 109, "Accounting for Income Taxes."

Income taxes included in the Consolidated Statement of Operations
were:

                                             1995    1994    1993
                                            ------- ------- -------
Continuing operations.....................  $110.5  $ 64.0  $(19.3)
Discontinued operations...................    (2.1)   (2.0)   (3.1)
Cumulative effect of accounting changes...                   (19.4)
                                            ------- ------- -------
                                            $108.4  $ 62.0  $(41.8)
                                            ======= ======= =======

The geographical sources of earnings (loss) from continuing operations
before income taxes were:

                                             1995    1994    1993
                                            ------- ------- -------
United States.............................  $155.8  $ 87.1  $(126.2)
Outside United States.....................   138.8    84.3     (6.9)
                                            ------- ------- --------
                                            $294.6  $171.4  $(133.1)
                                            ======= ======= ========

The components of the income tax provision (benefit) charged
(credited) to continuing operations follow.  

                                             1995    1994    1993
                                            ------- ------- -------
Current:
U.S. Federal..............................  $  3.0  $ 37.7  $ 15.0
U.S. State and local......................     4.2     6.5     6.5
Outside United States.....................    36.7    25.0    19.8
                                            ------- ------- -------
                                              43.9    69.2    41.3
Deferred:
U.S. Federal..............................    42.5   (12.7)  (57.3)
U.S. State and local......................     5.2      .8    (2.9)
Outside United States.....................    18.9     6.7     (.4)
                                            ------- ------- -------
                                              66.6    (5.2)  (60.6)
                                            ------- ------- -------
                                            $110.5  $ 64.0  $(19.3)
                                            ======= ======= =======

The Company had the following deferred tax balances at June 30, 1995
and 1994:

                                                     1995     1994
                                                    ------   ------
Deferred tax assets:
  Restructuring accruals........................... $ 51.3   $ 97.9
  Employee benefits................................   71.6     57.6
  Net operating losses.............................   21.8     45.5
  Alternative minimum tax credit...................    8.3     10.9
  Environmental accruals...........................    9.7      5.4
  Other, net.......................................    6.6      4.4
                                                    -------  -------
Gross deferred tax assets..........................  169.3    221.7
  Valuation allowances.............................  (24.7)   (49.8)
                                                    -------  -------
Total deferred tax assets..........................  144.6    171.9

Deferred tax liabilities:
  Property, plant and equipment....................   85.5     86.7
  Receivables......................................   58.2     24.1
  Intangible assets................................   26.6     20.2
                                                    -------  -------
Total deferred tax liabilities.....................  170.3    131.0
                                                    -------  -------
Net deferred tax (assets) liabilities.............. $ 25.7   $(40.9)
                                                    =======  =======

The alternative minimum tax credit of $8.3 million is available to
reduce future Federal taxes payable and has an unlimited carryforward
period.

The tax benefit of the Company's net operating loss carryforwards of
$21.8 million relates to its non-U.S. operations.  Factors causing the
effective tax rate for continuing operations to differ from the
U.S. Federal statutory rate were:

                                              1995    1994    1993
                                             ------  ------  ------
Computed tax at the U.S. Federal statutory 
  rate.....................................  $103.1  $ 60.0  $(45.3)
Statutory rate changes.....................            (3.0)
Adjustments to income tax accruals.........                    (5.0)
State income taxes, net of Federal benefit.     6.1     4.7     5.8
Restructuring..............................                    21.7
Other items................................     1.3     2.3     3.5
                                             ------- ------- -------
Income tax provision (benefit).............  $110.5  $ 64.0  $(19.3)
                                             ======= ======= =======
Effective tax rate.........................   37.5%   37.3%   14.5%

The effective rate for 1994 before the net tax benefit from the
restructuring charge and the previously discussed statutory rate
changes was 38.5 percent. The 1993 effective rate before the net
benefit for restructuring and FAS 109 adoption was 36.8 percent. The
favorable adjustments to income tax accruals included in the preceding
table resulted from the conclusion of income tax audits that spanned a
number of years.

Undistributed earnings of certain subsidiaries outside the United
States are considered to be permanently invested. Accordingly, no
provision for income taxes was made for undistributed earnings of such
subsidiaries which aggregated $188.4 million at June 30, 1995.

NOTE 10:  ACCRUED LIABILITIES

AT JUNE 30,                                   1995    1994
                                            -------  -------
Restructuring accruals.....................  $139.0  $176.1
Other......................................   210.4   179.9
                                             ------  ------
                                             $349.4  $356.0
                                             ======  ======

NOTE 11:  DEBT

The components of short-term debt were:

AT JUNE 30,                                  1995    1994
                                            ------  ------
Commercial paper........................... $ 53.3  $ 72.5
Notes payable..............................  125.7    55.0
Current maturities of long-term debt.......   18.5    20.3
                                            ------  ------
                                            $197.5  $147.8
                                            ======  ======

The components of long-term debt were:
AT JUNE 30,                                  1995    1994
                                            ------  ------
Commercial paper........................... $100.0  $100.0
9.875% debentures due in annual 
  installments of $15.0 million, beginning
  in 2002, with final payment of $12.8
  million in 2011..........................  134.8   134.6
8.75% promissory note due in annual 
  installments of $10.3 million, with final
  payment of $.5 million in 1997...........   10.8    31.3
7% debentures due 2013.....................   98.5    98.5
6% notes due 2003..........................   99.3    99.2
Other......................................   76.6    78.7
                                            ------  ------
                                             520.0   542.3
Less current maturities....................   18.5    20.3
                                            ------  ------
                                            $501.5  $522.0

At June 30, 1995 and 1994, commercial paper totaling $100.0 million,
has been classified as long-term debt as it is backed by irrevocable
long-term lines of credit.

The 9.875% debentures are redeemable at the option of Mallinckrodt at
100 percent in 2001 and thereafter. 

Maturities of long-term debt for the next five years are:  1996-$18.5
million; 1997-$6.6 million; 1998-$4.4 million; 1999-$34.7 million; and
2000-$103.6 million (includes $100.0 million of commercial paper).

The weighted average interest rate on short-term borrowings at June
30, 1995 and 1994 was 6.3% and 4.6%, respectively.

NOTE 12:  LINES OF CREDIT

The Company has a $450 million private-placement commercial paper
program.  This program is backed by $650 million of U.S. lines of
credit, $100 million available until March 1996 and $550 million
available until November 1999.  Under the terms of this agreement,
interest rates are determined at the time of borrowing and are
dependent on the Company's senior debt ratings and usage level of the
facility.  At current usage level and senior debt ratings, the
borrowing cost would be based on London Interbank Offered Rates plus
 .14 percent, or other alternative rates.

Commercial paper and borrowings under the U.S. credit lines of $153.3
million and $90 million, respectively, were outstanding at June 30,
1995.  Non-U.S. lines of credit totaling $262.6 million are also
available and borrowings under these lines were $35.7 million at June
30, 1995.  These non-U.S. lines are cancelable at any time.

NOTE 13:  PENSION AND INVESTMENT PLANS

The Company has pension plans covering substantially all its employees
that provide for retirement benefits based on years of service and the
level of compensation for the highest three to five years occurring
generally within a period of up to 10 years prior to retirement.
Contributions to the U.S. plans meet ERISA minimum funding
requirements.

Pension expense for continuing operations follows:

                                             1995    1994    1993
                                            ------  ------  ------
Service cost............................... $18.9   $18.1   $15.6
Interest cost on projected benefit 
  obligation...............................  31.7    30.8    29.9
Earnings on plan assets.................... (24.0)  (21.2)  (35.0)
Net amortization of initial unrecognized
  asset and deferral of subsequent 
  unrecognized net gains and losses........  (5.7)   (7.5)    9.3
                                            ------  ------  ------
                                            $20.9   $20.2   $19.8
                                            ======  ======  ======

U.S. pension expense in 1995, 1994 and 1993 was $17.9 million, $16.2
million and $15.7 million, respectively.

Assumptions used in determining the actuarial present value of benefit
obligations follow:

                                             1995    1994    1993
                                            ------  ------  ------
Discount rate..............................  8.5%    8.0%    8.5%
Long-term rate of return on plan assets....  9.5%   10.0%   10.0%
Compensation increase rate.................  5.5%    5.5%    6.0% 

The plans' assets mostly relate to U.S. plans and consist primarily of
corporate equities, U.S. government debt securities and units of
participation in a collective short-term investment fund.

The Company also sponsors three defined contribution investment plans. 
Participation in these plans is voluntary, with substantially all
employees eligible to participate.  Expenses related to the plans
consist primarily of Company contributions which are based on
percentages of certain employee contributions, plus discretionary
amounts determined on an annual basis.  Defined contribution expense
for 1995, 1994 and 1993 was $12.4 million, $10.6 million and $7.5
million, respectively.

The funded status of Mallinckrodt's U.S. and non-U.S. pension plans
and amounts recognized in the balance sheet follow:
1995                       1994
                            ------------------------  -------------------------
                            Plans With   Plans With    Plans With   Plans With
                            Assets In    Accumulated   Assets In    Accumulated
                            Excess of    Benefits      Excess of    Benefits
                            Accumulated  In Excess     Accumulated  In Excess
                            Benefits     of Assets     Benefits     of Assets
                            -----------  -----------  -----------  -----------
Assets at fair value.......   $307.2        $ 48.8       $292.0      $ 41.2
Actuarial present value of
  benefit obligation:
    Vested benefits........    254.6          61.0        242.8        56.7
    Nonvested benefits.....      4.8           6.7          5.5         6.5
                              ------        ------       ------      ------
    Accumulated benefit
      obligation...........    259.4          67.7        248.3        63.2
    Projected future 
      salary increases.....     69.8          19.4         67.6        23.4
                              ------        ------       ------      ------
    Projected benefit 
      obligation...........    329.2          87.1        315.9        86.6
                              ------        ------       ------      ------
Projected benefit obligation
  in excess of plan assets..   (22.0)        (38.3)       (23.9)      (45.4)
Items not yet recognized in
  earnings:
    Unrecognized net (gain)
      loss..................    23.1          (2.3)        28.2         7.9
    Unamortized transition
      (asset) liability.....    (2.6)         10.8         (2.4)       12.7
                              -------       -------      -------     -------
Prepaid (accrued) pension
  liability.................  $ (1.5)       $(29.8)      $  1.9      $(24.8)
                              =======       =======      =======     =======
NOTE 14:  POST RETIREMENT AND POSTEMPLOYMENT BENEFITS

Mallinckrodt provides certain health care benefits for U.S. salaried
and hourly retired employees. Employees may become eligible for health
care benefits if they retire after attaining specified age and service
requirements while they worked for the Company. Health care benefits
are paid directly by Mallinckrodt.

Net periodic postretirement benefits expense for 1995, 1994 and 1993
consisted of the following:
    
                                             1995    1994    1993
                                            ------  ------  ------
Service cost for benefits earned during the
  year..................................... $ 4.9   $ 3.6   $ 3.8
Interest cost on benefit obligation........  13.0    10.4    10.7
Amortization of unrecognized net loss......    .6
                                            -----   -----   -----
                                            $18.5   $14.0   $14.5
                                            =====   =====   =====

The following table presents the plan's funded status reconciled with
amounts recognized in the Company's statement of financial position: 

                                                      1995    1994
                                                     ------  ------
Accumulated postretirement benefit obligation (APBO):
  Retirees........................................... $90.3   $91.2
  Active employees...................................  62.8    60.0

Accumulated postretirement benefit obligation in 
  excess of plan assets............................. 153.1   151.2
Unrecognized net loss............................... (10.4)  (26.5)
                                                     ------  ------
Accrued postretirement benefit cost................. $142.7  $124.7
                                                     ======  ======

The discount rate used in determining the APBO at June 30, 1995 and
1994 was 8.5 percent and 8.0 percent, respectively. 

The assumed health care cost trend rate used in measuring the APBO at
June 30, 1995 was 10.0 percent, gradually declining to 5.0 percent in
2006 and thereafter.  At June 30, 1994 the rate was 10.5 percent
gradually declining to 5.0 percent in 2005 and thereafter.  A one
percentage point increase in the health care cost trend rate would
increase the APBO as of June 30, 1995, by $17.8 million and the
aggregate service and interest cost by $2.5 million. 

NOTE 15:  CAPITAL STOCK

The Company has authorized and issued 100,000 shares, 98,330
outstanding at June 30, 1995, par value $100, 4 Percent cumulative
preferred stock. This stock, with voting rights, is redeemable at the
Company's option at $110 a share. During the three years ended June
30, 1995, the number of issued and outstanding shares did not change. 

At June 30, 1995, the Company has authorized 1,400,000 shares, par
value $1, of series preferred stock, none of which is outstanding. 

Each outstanding common share includes a non-voting common stock
purchase right. If a person or group acquires or has the right to
acquire 20 percent or more of the common stock or commences a tender
offer for 30 percent or more of the common stock, the rights become
exercisable by the holder who may then purchase $167 worth of
common stock for $83 unless, in lieu thereof, the Board of Directors
causes the exchange of each outstanding right for one share of common
stock (in either case exclusive of the rights held by the acquiring
person or group which are voided). In the event of a merger or sale of
50 percent or more of the Company's assets, the rights may in certain
circumstances entitle the holder to purchase $167 worth of stock in
the surviving entity for $83. The rights may be redeemed by the Board
at a price of $.017 per right at any time before they become
exercisable, and unless they become exercisable, they will expire
March 31, 1996. 

The Company has a three year incentive award program for executive
officers which expires June 30, 1997. There are 1,000,000 common
shares reserved for issuance under this plan. 

Common shares reserved at June 30, 1995, consisted of the following: 

Exercise of common stock purchase rights................ 87,711,353
Exercise of stock options and granting of stock awards.. 10,960,267
                                                         ----------
                                                         98,671,620

Changes in the number of shares of common stock issued 
  and in treasury were as follows:
                                     1995        1994        1993
                                 -----------  ----------- ----------
Common stock issued.............. 87,116,289  87,116,289  87,116,289
Treasury common stock:
  Balance, beginning of year..... 10,110,056  10,671,514  11,371,742
  Stock options exercised........   (371,913)   (429,645)   (833,560)
  Purchased......................    499,854          19     274,267
  (Awards) cancellations of 
    restricted shares............    127,206    (131,832)   (140,935)
                                  ----------- ----------- -----------
  Balance, end of year........... 10,365,203  10,110,056  10,671,514
                                  ----------- ----------- -----------
Common stock outstanding, end of
  year........................... 76,751,086  77,006,233  76,444,775 
                                  ==========  ==========  ==========

NOTE 16:  STOCK PLANS

Three non-qualified stock option plans provide for granting options to
purchase shares of common stock at prices not less than 100 percent of
market price (as defined) at the date of grant. Options under these
plans are exercisable over nine years beginning one year after the
date of grant and are limited to 50 percent during the first year of
eligibility.  

Information on stock option activity follows: 
 
                                     Price
                                     Range    1 995       1994
                                     ------  ---------  ---------
NUMBER OF OPTIONS
Outstanding, beginning of year...... $10-40  5,351,732  4,883,358
Granted.............................  30-34  1,419,656  1,363,680
Cancelled...........................  16-40   (272,826)  (465,661)
Exercised...........................  10-37   (371,913)  (429,645)
                                             ---------- ----------
Outstanding, end of year............  10-40  6,126,649  5,351,732
                                             =========  =========
AT JUNE 30,
  Exercisable..............................  4,214,583  3,478,030
  Reserved for future option grants........  3,833,618  4,980,448

The average exercise price of outstanding stock options at June 30,
1995, was $30.14 a share, based on an aggregate exercise price of
about $185 million. Outstanding stock options will expire over a
period ending no later than April 17, 2005. 

The 1973 non-qualified stock option and award plan also provides for
the award of restricted shares of Mallinckrodt's common stock to
executive officers. Under provisions of the plan, the grantee makes no
cash payment for the award and the shares are held in escrow until
vested, with the grantee being unable to dispose of the restricted
shares until vested.  Upon forfeiture of any share of restricted stock
in accordance with the stock option and award plan, or the terms and
conditions of the award, the shares would automatically be transferred
to and reacquired by the Company at no cost.  In 1995 and 1994, the
Company issued from its treasury stock 109 and 131,832 restricted
shares, respectively.  In 1995, the Company reacquired 127,315 shares
of unrestricted stock in lieu of payment of withholding taxes on the
424,215 shares of restricted stock previously awarded to executive
officers in connection with a three year incentive award program which
expired and vested on June 30, 1994. An additional award of 5,000
shares of restricted stock will vest on April 3, 1996. 

NOTE 17:  INTERNATIONAL OPERATIONS

Net sales, earnings from continuing operations before income taxes,
and identifiable assets by geographic areas follow:

1995           United              Asia/    Latin
               States    Europe   Pacific  America  Canada    Total
              --------   ------   -------  -------  ------  ---------
Gross Sales   $1,519.1   $588.1   $187.4   $118.1   $101.8   $2,514.5
Intercompany     135.6    111.6      5.2      4.0     46.0      302.4
              --------   ------   ------   ------   ------   --------
Net Sales     $1,383.5   $476.5   $182.2   $114.1   $ 55.8   $2,212.1
              ========   ======   ======   ======   ======   ========

1994           United             Asia/    Latin
               States    Europe   Pacific  America  Canada    Total
              --------   ------   -------  -------  ------   --------
Gross Sales   $1,353.3   $453.7   $163.7   $119.1   $84.3    $2,174.1
Intercompany     130.0     68.9      3.3      2.1    29.7       234.0
              --------   ------   ------   -------  -----    --------
Net Sales     $1,223.3   $384.8   $160.4   $117.0   $54.6    $1,940.1
              ========   ======   ======   =======  =====    ========

1993           United             Asia/    Latin
               States    Europe   Pacific  America  Canada    Total
              --------   ------   -------  -------  ------   --------
Gross Sales   $1,240.9   $395.0   $167.8   $113.0   $72.4    $1,989.1
Intercompany     119.9     41.7      6.4       .6    24.2       192.8
              --------   ------   ------   ------   -----    --------
Net Sales     $1,121.0   $353.3   $161.4   $112.4   $48.2    $1,796.3
              ========   ======   ======   ======   =====    ========

EARNINGS                                     1995    1994    1993
                                            ------  ------  ------
United States.............................  $208.8  $220.0  $ 181.9
Europe....................................   116.2    67.3     56.5
Asia/Pacific..............................    12.0    14.6     16.4
Latin America.............................    23.2    17.8     16.0
Canada....................................     5.0     4.0      (.4)
Restructuring charge......................           (93.9)  (334.1)
Corporate.................................   (28.8)  (30.2)   (35.5)
Eliminations..............................    (7.5)   (6.5)    (9.8)
                                            ------- ------- --------
Operating earnings........................   328.9   193.1   (109.0)
Equity in pre-tax earnings of joint
  venture.................................    25.3    18.5     10.6
Interest expense, net.....................   (59.6)  (40.2)   (34.7)
                                            ------- ------- --------
Consolidated..............................  $294.6  $171.4  $(133.1)
                                            ======= ======= ========

ASSETS                                   1995      1994      1993
                                       --------  --------  --------
United States......................... $1,570.9  $1,385.6  $1,211.5

Europe................................    800.0     736.4     601.5
Asia/Pacific..........................    228.7     171.6     155.3
Latin America.........................     84.3      80.5      78.4
Canada................................     47.0      32.9      26.0
Corporate.............................    113.3     143.4     188.3
Eliminations..........................   (123.6)   (116.9)    (83.4)
                                       ---------  --------  --------
Consolidated.......................... $2,720.6   $2,433.5  $2,177.6
                                       =========  ========  ========

RESTRUCTURING CHARGES BY REGION WERE:              1994     1993
                                                   -----   ------
United States..................................... $93.9   $257.9
Europe............................................           35.4
Asia/Pacific......................................           33.0
Latin America.....................................            7.8
                                                   -----   ------
                                                   $93.9   $334.1
                                                   =====   ======

Transfers of product between geographic areas are at prices
approximating those charged to unaffiliated customers.  All such
transfers are fully eliminated.

Net foreign exchange translation gains (losses) from businesses in
hyperinflationary economies aggregated $.7 million, $(4.2) million and
$(5.8) million in 1995, 1994 and 1993, respectively, and have been
included in "Other operating income (expense), net" in the
Consolidated Statement of Operations. These translation effects were
primarily from Mallinckrodt Veterinary operations in Latin America.
Translation effects for all of Mallinckrodt's businesses were not
material.

NOTE 18:  BUSINESS SEGMENTS

The tables on page 27 show Mallinckrodt's continuing worldwide
operations, which are organized in three industry segments as follows: 

MALLINCKRODT CHEMICAL

Production and sale of analgesics and medicinal narcotics used by
pharmaceutical companies and catalysts, specialty inorganics,
stearates and laboratory chemicals used by industry and research
organizations. Through the Tastemaker joint venture, the company also
participates in the worldwide flavors business. 

MALLINCKRODT MEDICAL

Production and sale of products used primarily in hospitals, including
X-ray contrast media, interventional products, diagnostic and
therapeutic radiopharmaceuticals, airway management products,
temperature monitoring products, and blood gas and vital sign
monitoring systems. 

MALLINCKRODT VETERINARY

Production and sale of pharmaceuticals, biologicals, veterinary
specialties,  other health-related products and mineral feed
supplements for food and companion animals. 

NONRECURRING CHARGES

Restructuring charges recorded in 1994 and 1993 are discussed 
in Note 1. 

In 1993, corporate expense included charges of $5.5 million, $3.4
million after taxes, or $.04 per share, from executive resignations
resulting from the performance of Mallinckrodt Veterinary which were
reported in the Consolidated Statement of Operations under "Selling,
administrative and general expenses." 

NOTE 19:  COMMITMENTS  

The Company leases office space, data processing equipment, buildings,
and machinery and equipment. Rent expense for continuing operations in
1995, 1994 and 1993 related to operating leases was $27.9 million,
$32.1 million and $29.6 million, respectively. 

Minimum rent commitments for continuing operations at June 30, 1995,
under operating leases with a remaining noncancelable period exceeding
one year follow:  

YEARS ENDING JUNE 30,
1996....................................................$ 31.9
1997....................................................  24.0
1998....................................................  18.3
1999....................................................  15.6
2000....................................................  13.6
Later years.............................................  40.5
                                                        ------
                                                        $143.9
                                                        ======

NOTE 20:  CONTINGENCIES

The Company is subject to various investigations, claims and legal
proceedings covering a wide range of matters that arise in the
ordinary course of its business activities. In addition, in connection
with laws and regulations pertaining to the protection of the
environment, the Company is a party to several environmental
remediation investigations and clean-ups and, along with other
companies, has been named a "potentially responsible party" for
certain waste disposal sites. Each of these matters is subject to
various uncertainties, and it is possible that some of these matters
will be decided unfavorably against the Company. The Company has
established accruals for matters that are in its view probable and
reasonably estimable. Based on information presently available,
management believes that existing accruals are sufficient to satisfy
any known environmental liabilities.  Further, any additional
liability that may ultimately result from the resolution of these
matters is not expected to have a material effect on Mallinckrodt's
business or financial condition taken as a whole.
QUARTERLY RESULTS
(In millions except per share amounts)
Fiscal 1995 (Unaudited)
                                          Quarter
                           -------------------------------------
                           First     Second    Third     Fourth      Year
                           -------   -------   -------   -------   ---------
Net sales................  $487.7    $516.3    $569.1    $639.0    $2,212.1
Gross margins............   213.0     236.7     255.9     291.3       996.9
Earnings from continuing
  operations.............    34.7      40.6      48.1      60.7       184.1
Loss from discontinued 
  operations.............     (.8)      (.8)     (1.1)     (1.1)       (3.8)
                           -------   -------   -------   -------   ---------
Net earnings.............    33.9      39.8      47.0      59.6       180.3
Preferred stock dividends     (.1)      (.1)      (.1)      (.1)        (.4)
                           -------   -------   -------   -------   ---------
Available for common 
  shareholders...........  $ 33.8    $ 39.7    $ 46.9    $ 59.5    $  179.9
                           =======   =======   =======   =======   =========
Earnings per common share:
  Continuing operations..  $ .45     $ .52     $ .62     $ .78     $2.37
  Discontinued operations.  (.01)      (.01)    (.01)     (.02)     (.05)
                           ------    -------   ------    ------    ------
Net earnings.............. $ .44     $ .51     $ .61     $ .76     $2.32
                           ======    =======   ======    ======    ======
Fiscal 1994 (Unaudited)
                                          Quarter
                           -------------------------------------
                           First     Second    Third     Fourth      Year
                           -------   -------   -------   -------   ---------
Net sales................. $444.9    $466.3    $486.7    $542.2    $1,940.1
Gross margins.............  202.4     215.3     229.5     255.6       902.8
Earnings (loss) from 
  continuing operations...   35.3      36.7      42.9      (7.5)      107.4
Loss from discontinued 
  operations..............    (.8)      (.7)      (.6)     (1.5)       (3.6)
                           -------   -------   -------   -------   ---------
Net earnings (loss).......   34.5      36.0      42.3      (9.0)      103.8
Preferred stock dividends.    (.1)      (.1)      (.1)      (.1)        (.4)
                           -------   -------   -------   -------   ---------
Available for common 
  shareholders............ $ 34.4    $ 35.9    $ 42.2    $ (9.1)   $  103.4
                           =======   =======   =======   =======   =========
Earnings (loss) per common
  share:
  Continuing operations... $ .45     $ .47     $ .55     $(.10)    $1.38
  Discontinued operations.  (.01)     (.01)     (.01)     (.02)     (.05)
                           ------    ------    ------    ------    ------
  Net earnings (loss)..... $.44      $.46      $.54      $(.12)    $1.33
                           ======    ======    ======    ======    ======
Fiscal 1994
Earnings from continuing operations included favorable tax adjustments
of $1.4 million, or $.02 per share and $1.6 million, or $.02 per
share, in the first and third quarters, respectively, resulting from
U.S. and foreign tax law changes. 

Fourth quarter earnings from continuing operations included after-tax
restructuring charges of $58.8 million, or $.76 per share. 

Earnings from continuing operations without restructuring charges and
favorable tax adjustments were:
Quarter
                           -------------------------------------
                           First     Second    Third     Fourth      Year
                           -------   -------   -------   -------   ---------
Net of taxes.............. $33.9     $36.7     $41.3     $51.3     $163.2
Per share................. $ .43     $ .47     $ .53     $ .66     $ 2.10
Earnings per share for the four quarters of 1994 are less than full
year per share results by $.01, due to an increase in common shares
outstanding.
CONSENT OF ERNST & YOUNG LLP

We consent to the incorporation by reference in the Registration
Statements (Form S-3 No. 33-47081 and Form S-3 No. 33-57821) of
Mallinckrodt Group Inc. and in the related Prospectus of our report
dated August 8, 1995, with respect to the consolidated financial
statements of Mallinckrodt Group Inc. for the year ended June 30, 1995
included in this Current Report (Form 8-K) filed with the Securities
and Exchange Commission on September 8, 1995.

St. Louis, Missouri
September 8, 1995
Mallinckrodt Group Inc.

ROGER A. KELLER
Vice President, Secretary 
  and General Counsel

DATE:  September 8, 1995