Novartis Posts Drop In Q4 Net Profit

reported a drop in its profit for the fourth quarter. Novartis' net profit attributable to shareholders declined to $1.49 billion, compared to $2.03 billion, in the year-ago quarter. The company took $1.1 billion in one-time charge during the quarter. Core net income climbed to $2.91 billion, versus a restated $2.89 billion. EPS dropped 23% to $0.62, while core EPS rose 3% to $1.21. Its sales shrank 2% to $14.63 billion, versus analysts' estimates of $14.68 billion. Excluding currency fluctuations impact, sales gained 4%. Its operating income slipped 49% to $1.2 billion. For this year, the company projects net sales to rise by a mid-single digit percentage versus 2014. Joseph Jimenez, CEO of Novartis, said: “2014 was a transformational year for Novartis. We improved our execution, while taking steps to focus the company on our three leading businesses with global scale. We delivered solid sales growth with margin expansion, strengthened innovation, and advanced our quality and productivity agendas. I'm confident that we are positioned for future success.” Novartis shares fell 0.39% to close at $96.49 yesterday.