AstraZeneca’s profits to be hit by drug setback

By Scott Reid
Published on Monday 30 January 2012 00:00

Drugs group AstraZeneca is tipped to post flat revenues on Thursday after suffering setbacks in its efforts to produce new blockbuster treatments.

The UK’s second-biggest medicine maker is forecast to report revenues of about $33.5 billion (£21.3bn) for the year to 31 December, with pre-tax profits up 15 per cent to more than $12bn.

The company previously warned its profits would be at the low end of market expectations after an ovarian cancer drug was held back for further development when tests showed it was unlikely to prove effective.

Oil giant Royal Dutch Shell saw earnings under pressure in the final quarter of 2011 as unseasonably warm weather in Europe hit demand for gas.

The Anglo-Dutch major is expected to report profits of $5.1bn (£3.24bn), a 27 per cent slide on the previous quarter but a 24 per cent increase on the previous year. The firm is also expected to report a decline in production levels, as it feels the impact of lower demand, and a wide range of disposals, including assets in North America and Australia.

Strong growth in China, India, Indonesia and other emerging markets is set to shelter Unilever from the economic storm in western Europe. The household goods maker is expected to report that volumes growth slowed to 1.2 per cent in the final quarter of 2011, down from 1.9 per cent in the previous three months.

BT is likely to reveal a dip in revenues in its third quarter as the fight for broadband customers hots up.

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