Posting solid 2nd-qtr results, AstraZeneca announces another cost-cutting program

Despite what were generally viewed as a solid set of second-quarter 2007 results, Anglo-Swedish pharmaceutical major AstraZeneca revealed a second restructuring initiative (on top of 3,300 job cuts announced earlier this year (Marketletter February 12) which, involving 4,300 more posts in sales, marketing, business infrastructure and R&D and costing an estimated $1.6 billion, will deliver annual benefits in excess of $900.0 million by 2010.

On the day of the results, July 27, the firm's stock fell 3.1% to L25.92, despite chief executive David Brennan raising the full-year earnings forecast to $3.90-$4.04 per share, from $3.80-$4.05. However, this should be seen in the context of a severe market slump, as the FTSE 100 saw its largest one-day decline in five years, plunging 3.15% on that day.

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