Europe woes weigh on Glaxo in first quarter

Drugs giant GlaxoSmithKline saw a modest increase in group revenue in the first quarter of 2012 as growth in the US, emerging markets, Asia Pacific and Japan offset declines in Europe.

Total turnover amounted to £6.640bn, up 2% at constant exchange rates (CER) or 1% on a reported basis. Pharmaceuticals revenues rose 2% but were affected by ongoing pressure from austerity measures in Europe as well as slower growth in EMAP - this was driven particularly by "continued disruption in the Middle East, but also some broader sensitivity to a more challenging economic environment in a number of EMAP markets" the group said. Core operating profits were up 3% (CER) at £2,071m, while core earnings per share (EPS) rose 7% to 27.3p. The core operating margin improved slightly fr...