Tuesday, October 27, 1998 Published at 14:52 GMT
Business: The Company File
Zeneca warns over pound's strength
Zeneca produced a mixed bag of results
Chemicals and pharmaceuticals group Zeneca says the strong pound will wipe about £130m off its full year profits, despite strong sales growth by its pharmaceuticals sector in the US and Europe.
The estimate of the pound's damage to profits was revised upwards from Zeneca's half year trading statement which put the damage at £110m.
Total group sales for the nine months to September 30 reached £4.15bn, up from £3.95bn for the same period last year.
While pharmaceutical sales were up 9%, buoyed by particularly strong growth in volumes in the US, sales of agrochemicals were up just 5% and sales at the Zeneca specialities division were down 6%.
The group said that sales over the full second half of the year were expected to be in line with the first six months.
The stock market took a negative view of the statement and Zeneca's shares fell almost 5% during morning trade.
The Company File Contents