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.

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