GSK shares rally as profits dip

<p>GSK has reported disappointing profits as a result of lower demand in key markets.</p>

Shares in GlaxoSmithKline (GSK) have rallied on the New York Stock Exchange this afternoon (February 6th), after the company announced that its profits have slipped.

The drug giant's pre-tax profits were £7.64 billion for the year to December 31st 2012, which is a four per cent decline on the previous year.

Turnover declined by one per cent to £26.4 billion, as a result of "weaker than expected" sales in Europe, where demand was down by seven per cent.

In the US, sales were down to £8.4 billion – a fall of four per cent – and in Japan, GSK sales slumped by five per cent to £2.2 billion.

Chief executive Sir Andrew Witty said the present operating environment is "challenging", but looking forward to 2013, the company expects to reach earnings per share growth of three or four per cent and sales growth of one per cent.

At 16:40 GMT today, shares in GSK advanced by 0.8 per cent to $45.47 per unit.

Learn about the US markets and CFD trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.