Zeneca insists on its independence
15 Jan 2000
Recent merger fever in the world pharmaceuticals industry has failed to dent the determination of pharmaceuticals-to-agrochemicals manufacturer Zeneca to remain single. 'I still sleep easy at night, and I'm not suffering from any nightmares,' quipped chairman David Barnes when asked whether he was looking over his shoulder for possible hostile bids.
The company posted strong results for 1997, although the strength of sterling wiped out £522 million in sales and £178 million in profits. Neglecting currency effects, sales were up 7 per cent at £5.2 billion, with profit before tax up 24 per cent at £1.1 billion. Factoring in currencies, sales dipped by 3 per cent while profits increased by 7 per cent. Pharmaceuticals, the strongest business, posted sales up 16 per cent to £2.56 billion.
The results include £13 million spent on Year 2000 compliance. This will be higher this year, with £45 million earmarked for Y2K alone and £12 million in 1999. The majority of work will be complete this year, noted Symonds; 'after that, the focus will shift to supplies and customers,' he added. Spending on European monetary union will total £25 million, spread over the five years to 2002.
