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Strong sterling to cost Zeneca pounds 20m

Cliffford German
Tuesday 27 October 1998 19:02 EST
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SHARES IN Zeneca, the pharmaceuticals, agrochemicals and speciality chemicals group, fell more than 5 per cent to 2210p yesterday after the company admitted the continuing strength of sterling would cost it an extra pounds 20m in lost profits by the end of the year.

Although sterling has weakened since the summer, Zeneca is forecasting the pound's negative impact will reach pounds 130m by the end of the year, compared with an earlier forecast of pounds 110m.

Sales were 5 per cent higher in the first nine months of the year compared with the same stage in 1997, but underlying growth was 7 per cent higher, the company said yesterday.

Sales growth in the first nine months was broadly in line with the first half year and is expected to continue to the end of the year.

Excluding currency effects, sales of pharmaceuticals rose 14 per cent, and 22 per cent in the US.

Sales of agro-chemicals were up 2 per cent in the first nine months after slowing down in the third quarter but are expected to pick up again in the southern hemisphere's growing season.

Sales of specialty chemicals fell 6 per cent, however, and the trend is expected to continue.

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