GlaxoSmithKline Q2 net profit up but sales drop

LONDON (AP) ? Pharmaceutical company GlaxoSmithKline has reported a 13 percent gain in net profit in its second quarter compared with a year ago, but sales and earnings fell short of analysts' expectations.

The company on Wednesday reported an after-tax profit of 1.25 million pounds ($1.94 billion), up from 1.1 billion pounds a year earlier. The increase reflected a tax rate of 15 percent compared with 28 percent a year earlier.

Revenue fell nearly 4 percent to 6.46 billion pounds, 3 percent below consensus. It dropped 8 percent in Europe and 6 percent in the United States.

Pretax profit was down 2.5 percent at 1.55 billion. Core earnings per share of 26.4 pence fell 2 percent below consensus.

Glaxo shares were down 1.6 percent at 1,422.5 pence in afternoon trading.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-07-25-Britain-Earns-GlaxoSmithKline/id-c0904e726f86488ca6ac6bb7fbbd7b7f

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