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Financial Statements

Notes 1-5

1 OPERATING PROFIT

2007
$m
2006
$m
2005
$m
Group operating profit 8,094 8,216 6,502
Charges included above
– for depreciation (1,076) (950) (965)
– for amortisation (554) (325) (272)
– for impairment (226) (70) (90)
Gross profit 23,140 20,916 18,594

Impairment charges in 2007 relate to productivity initiatives in the Global Supply Chain in Germany, the write-down of business support assets, the termination of a product in development acquired with MedImmune and four collaboration agreements.

Impairment charges in 2006 relate to the write-down of assets in respect of Toprol-XL, NXY-059 and a collaboration agreement.

Impairment charges in 2005 relate to the write-down of assets associated with capacity reviews at manufacturing sites, primarily in the UK and France.

2007
$m
2006
$m
2005
$m
Other operating income and expense
Royalties 236 327 165
Other income and expense 492 197 28
728 524 193

Other income and expense includes gains and losses arising from disposals under ongoing product and investment rationalisation programmes.

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