Roche sees strong 2012 performance in USA but slowdown in Europe

Swiss drug major Roche (ROG: SIX) has reported 2012 financial results with 4% growth in group sales to 45.5 billion Swiss francs ($49.29 billion), slightly more than analysts expectations of 45.3 billion francs. However, while sales in the USA - by far Roche’s largest market - grew 7%, its European business declined 2%. Roche shares dipped 1.5% to 202.770 francs in early morning trading in Zurich yesterday.

Core operating profit was 17.2 billion francs and core operating profit margin rose 2.1 percentage points to 37.7%. Net income came in at 9.77 billion francs, or 13.62 francs per share (+10%), which was shy of the 13.67 francs expectations of 24 analysts polled by Bloomberg.

For the fiscal year 2013, the company expects group sales growth to be in-line with 2012 at constant exchange rates and core earnings per share targeted to grow ahead of sales; the firm’s dividend is expected to increase in 2013. The forecast was disappointing, as the average analyst estimate is for 2013 earnings of 15.12 francs a share, which would be 11% above last year’s 13.62 francs, noted Bloomberg.