Novartis to slash jobs, as 3rd-qtr sales leap 18% and net income rises 7%

Swiss drug major Novartis (NOVN: VX) reported third-quarter 2011 results with 18% (12% at constant currencies) growth in net sales to $14.8 billion, in line with analysts’ expectations. Pharmaceuticals net sales grew 9% (+3% cc) to $8.2 billion, ophthalmic unit Alcon pro forma net sales grew 12% (+7% cc) to $2.5 billion and generics business Sandoz net sales grew 6% (+1% cc) to $2.3 billion.

Core operating income grew 11% (+15% cc) to $4.1 billion; core margin improved 0.6 percentage points to 27.7%; and core earnings per share rose 7% (+10% cc) to $1.45. Net income advanced 7% (+15% cc) to $2.46 billion, or $1.02 per share but well below market forecasts of $2.81 billion, with profit hit by the strong Swiss franc and drug price cuts, as well as the cost of acquiring Alcon last year. For full year 2011, the company expects group sales to grow in low double-digits on constant currency; pharmaceutical sales growth expected in low-to mid-single digit; and Sandoz sales growth expected in high-single digits. Core operating margin is expected to improve.

Plans 2,000 job cuts