Pharmacia & Upjohn has been telling analysts in phone calls thatforecasts for the second quarter of this year, and the year as a whole, are too high and should be lowered, analysts in the USA are reporting back. The firm has indicated that sales of older products have been sluggish, and full-year figures will reflect large restructuring costs which continue to weigh down results.
The analysts' average forecast for second- quarter profits was 45-50 cents per share before the rumors, and conversations with the company have led to a lower forecast of 40 cents a share. An unidentified analyst told Reuters that P&U also said that sales will be sluggish for the rest of the year.
No Official Profits Warning Analysts were reported to be unhappy with the way the company had released the news, saying that they should have had the information at the same time via an announcement to the market. "This is in principle a profits warning," he said, and "had the information gone out publicly, it would have affected the share price."
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