Profits fall at Roche and Clariant

Both Roche and Clariant have announced that their net income was down in 2001 swissinfo.ch

The Roche healthcare group in Basel has reported that 2001 underlying net profit fell to SFr4.8 billion ($2.81 billion), a 4.2 per cent drop over the previous year.

However, restructuring costs and damages for involvement in a vitamin cartel dragged the consolidated net profit down by 57 per cent to SFr 3.7 billion.

Across town, the specialty chemicals company Clariant announced that its net profit before exceptional charges fell by 72 per cent to SFr140 million.

Including one-off charges, mainly tied to a previously announced restructuring programme and a write-down, Clariant made a net loss of SFr1.242 billion.

In a statement, Clariant said that in a difficult year, which led to an “unsatisfactory” net result, it had still achieved some important goals. That left the company well positioned to benefit from an economic upturn, it said.

Roche: shares tumble

Analysts have said that Roche needs to boost pharmaceutical sales growth after its shares fell by 28 per cent last year. The company expects to start selling Pegasys, a potential top-selling treatment for hepatitis C, in the second half of the year.

Roche said growth in pharmaceuticals depended in part on generic competition to its Accutane acne treatment. It added that it expected sales in the pharmaceutical division to return to the average industry level next year.

The company commented that it expected a marked decrease in 2002 investment profit because of the continued weakness of financial markets.

In a related development, Roche said it would review options for its vitamins unit. Analysts have said the company may eventually opt to spin off or sell the business.

swissinfo with agencies