Continuing operations net sales amounted to $11.9 billion (-7%, +3% cc) in the first quarter. Growth products contributed $3.7 billion or 31% of net sales, up 15% (USD) over the prior-year quarter.
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Continuing operations operating income was $2.8 billion (-1%, +15% cc). The strong leverage from productivity initiatives and lower restructuring charges were more than offset by a negative currency impact of 16 percentage points, primarily due to the strengthening of the US dollar against most currencies. Operating income margin increased to 23.3% of net sales, up 2.5 percentage points (cc) from the prior-year quarter.
Currency had a negative impact of 1.2 percentage points, resulting in a net increase of 1.3 percentage points. The adjustments made to Group operating income to arrive at core operating income amounted to $0.9 billion (2014: $1.0 billion).
Core operating income was $3.7 billion (-4%, +9% cc). Core operating income margin in constant currencies increased 1.7 percentage points, mainly due to productivity gains across functional costs. Currency had a negative impact of 0.9 percentage points, resulting in a net increase of 0.8 percentage points to 30.6% of net sales.
Continuing operations net income was $2.3 billion (-6%, +9% cc), growing less than operating income mainly due to a lower contribution from associated companies, partly offset by lower financial expenses.
EPS was $0.96 (-3%, +12% cc), growing ahead of net income due to the lower number of average outstanding shares.
Continuing operations core net income was $3.2 billion (-4%, +8% cc), in line with core operating income.
Core EPS was $1.33 (-1%, +11% cc), growing slightly ahead of core net income due to the lower number of average outstanding shares.
Free cash flow for the first quarter was $1.5 billion, an increase of $0.3 billion compared to the prior-year period. This was primarily due to hedging gains and lower net working capital, partially offset by a negative currency impact on operations. ■