Pound toll at Zeneca

ZENECA said today the strong pound will cost it a higher-than- expected GBP 130 million this year, even though sterling has retreated from recent highs, writes David Lister.

The drugs giant has adjusted the figure given with its half-year results in August, when it estimated currency fluctuations would shave GBP 110 million from profits. The pound has since fallen 10% against the Deutschmark but stayed stable against the dollar.

Zeneca shares today dived 126p to 2211p as the group reported nine-months sales up 5% to GBP 4.15 billion, below some analysts' expectations. The biggest advance came from pharmaceuticals, where sales rose 9% to GBP 2.02 billion, confirming a growth rate broadly in line with Zeneca's peers. Last week rival SmithKline Beecham helped allay fears of a slowdown in the sector with an 8% rise in third-quarter pharmaceuticals sales. Zeneca's agrochemicals business rose a mere 2%, while speciality chemicals fell 6% to GBP 631 million, as German group BASF began to wind down a key manufacturing agreement.

Copyright 1998
Provided by ProQuest Information and Learning Company. All rights Reserved.