GlaxoSmithKline 3rd-qtr sales down, hit by European austerity moves

UK pharma giant GlaxoSmithKline (LSE: GSK), reporting third-quarter 2012 financial results yesterday, said that group sales fell 5% at constant exchange rates (-8% reported) to £6.53 billion ($10.51 billion), impacted by expected demanding prior year comparisons and continued weakness in European markets, but there is strong performance evident in key investment businesses. Sales missed analysts’ forecasts of £6.7 billion.

Core operating profit slumped 13% (CER) to £1.97 billion, while core earnings per share were 13% lower at 26.5 pence, falling short of analysts’ 28 pence expectations. Total operating profit came in at £1.68 billion, down 18%, with EPS 14% lower at 22.9 pence. GSK shares were down 0.7% at 1,410 pence at midday yesterday.