Novartis 2nd-quarter in line with analysts' forecasts

Swiss drug major Novartis (NOVN: VX) posted second-quarter 2013 financial results this morning, showing that group net sales increased 1% (+3% constant currency) to $14.5 billion, just beating analysts’ forecasts of $14.4 billion), with all divisions contributing to growth in constant currencies. Currency had a negative impact of 2 percentage points mainly from the weakening yen. Novartis previously forecast a mid-single-digit percentage decline in profit this year and had predicted that sales will be in line with those of 2012.

Group operating income decreased 4% (+1% cc) to $3.0 billion. The negative currency impact of 5 percentage points was mainly due to the weakening yen, which represents a larger proportion of operating income than sales. Operating income margin declined 1.2 percentage points to 20.5% of net sales.

Group net income was down 5% (0% cc) to $2.5 billion, declining at a slightly higher rate than operating income. Earnings per share were down 6% (-1% cc) to $1.03. Group core net income of $3.2 billion was 2% (+2% cc) below the previous year, and in line with analysts’ estimates. Core EPS declined 4% (+1% cc) to $1.30, largely in line with core net income.