Pharmacia & Upjohn Third Qtr Hit By Currencies

The newly-merged group reported a drop in earnings per share to 39 cents from 44 cents a year earlier, after an exceptional charge of 5 cents per share for restructuring and merger costs. Net earnings fell to $204 million from $231 million.

The weaker performance was flagged by the company three weeks ago, leading analysts to cut their forecasts for the rest of the year and for 1997.

Third-quarter sales grew by a sluggish two per cent to $1.7 billion. In a statement, Pharmacia & Upjohn said an unfavourable foreign exchange rate against the US dollar adversely affected its reported sales increase by two per centage points.

 

Principally the weakened Japanese yen affected sales and the strengthening of the Swedish krona and Italian lira increased costs in dollar terms, it said.

For the first nine months of the year, earnings per share were six per cent higher at $1.39 cents before restructuring and mergers charges of 75 cents per share. President and CEO John Zabriskie said the companys long-term merger targets had not changed.