Novartis Posts Higher Q1 Profit

reported a rise in its net income for the first quarter and reiterated its outlook for the full year. The company posted quarterly net income of $13.01 billion, or $5.40 per share, compared to $2.97 billion, or $1.21 per share, in the year-earlier period. Core net income from continuing operations slipped to $3.2 billion, or $1.33 per share, compared to $3.33 billion, or $1.35 per share, in the year-ago period. However, core net income climbed 8 percent at constant currencies. Analysts were projecting earnings of $1.10 per share. Total group net sales slipped 11 percent to $12.48 billion, while sales from continuing operations slipped 7 percent to $11.94 billion from $12.77 billion. Analysts projected revenue of $12.90 billion. Operating margin widened 250 basis points to 23.3 percent. Pharmaceuticals' net sales from continuing operations slipped 9 percent to $7.14 billion, while Alcon's net sales from continuing operations fell 3 percent to $2.56 billion. Sandoz' net sales from continuing operations declined 3 percent to $2.24 billion. Novartis shares fell 0.60 percent to close at $103.45 yesterday.