After charges, the company earned $335.3 million, or 25 cents a share, in the quarter ended Dec. 31, compared with $1.57 billion, or $1.18 a share, in the prior year.

As a result, shares of Wyeth were lately down $2.15, or 4.8%, at $42.50.

Before items, the Madison, N.J.-based company earned $801.7 million, or 60 cents a share, compared with $864.1 million, or 65 cents a share, in the prior-year quarter. Analysts were expecting the company to earn 65 cents a share.

Charges totaled $636.9 million, or $466.4 million after taxes, due to manufacturing restructuring and related asset impairments.

Looking to full-year 2004, Wyeth expects to earn $2.60 to $2.70 a share, which is below analysts' consensus for $2.75 a share. Revenue is seen rising 6% to 9%.

The company, which partners with MedImmune to market the nasal flu vaccination FluMist, cited higher selling, general and administrative expenses, which were offset by higher net revenue and lower cost of goods sold and decreased interest expense.

For example, on Nov. 18, MedImmune cut its sales guidance for FluMist due to weak sales.

Additionally, due to lower volume in its Premarin product line, Wyeth said it decided to close its pharmaceutical plant in Singapore. The company said that alone contribute $185.8 million to after-tax charges in the quarter.

Total revenue increased 14% to $4.33 billion on increases in sales of its Effexor XR, Protonix, and Zosyn drugs. Consumer health care also was strong, driven by higher sales of Centrum, Advil and cough and cold products. Excluding the impact of foreign exchange, revenue increased 9% for the quarter.

Separately, the company was downgraded by Deutsche Bank to hold from buy and also by CIBC World Markets to sector perform from overweight. Analysts agreed that results were impacted by asset impairments and overhanging issues related to the fen-phen diet drug, which Wyeth manufactured and was linked to heart and lung disease in the late 1990s.

For full-year results, Wyeth said earnings increased 10% to $3.259 billion, or $2.44 a share, before items, from $2.96 billion, or $2.22 a share, a year ago. Analysts had been calling for $2.49 a share. Including items, net income was down 54% at $2.05 billion, or $1.54 a share, compared with $4.45 billion, or $3.33 in the prior year.

Full-year revenue increased 9%, the company said, to $15.85 billion.