Investors cheered GlaxoSmithKline (GSK.L) today after the pharma giant declared net profits of £1.3 billion (US $2.1 billion) for the three months to the end of June 2011.

Today’s profits (quoted excluding the one-off charges for restructuring the business) were in line with forecasts and were much improved on the £130 million declared for the same period last year.

Andrew Witty, chief executive officer of GlaxoSmithKline, said today’s results were the result of the work done on boosting the group’s new business pipeline and new product delivery.

He explained, ‘We are seeing sustained delivery from the late stage pipeline, with FDA approval for Potiga for epilepsy, European approval for Benlysta for lupus and the approval of Rotaris for the prevention of rotavirus in Japan since the last quarterly announcement.’

Witty also confirmed that Glaxo’s management has remained focussed on strengthening the group’s overall financial position over the past quarter.

He said, ‘While we have made some progress improving our working capital position, there is clearly more to do. This is a significant focus area for us, particularly in inventory management where we are targeting a number of fundamental changes to the management of our supply chain.’

Witty said the group is to change how it reports its results from 2012, moving to a ‘core earnings’ basis for reporting, in keeping with many companies in the pharma sector.