BUSINESS: Financial Novartis Posts Solid 2Q ’15 Results, Despite Alcon’s Weak Performance By Staff Friday, July 24, 2015 12:23 AM BASEL, Switzerland—Novartis reported solid results for the second quarter ending June 30, 2015, despite a weak performance by Alcon, its eyecare business unit.Novartis generated net sales of $12.7 billion in second quarter, a 6 percent increase in constant currencies over year-ago. Operating income was $2.3 billion, a 14 percent drop in constant currencies, but core operating income rose 5 percent in constant currencies, to $3.6 billion.Alcon net sales of $2.6 billion were flat for 2Q versus year-ago, mainly driven by lower surgical equipment sales, a decline in intraocular lens (IOL) sales due to competitive pressure, and an accelerated contact lens care decline. In addition, Alcon was negatively impacted by approximately 2 percent from the phasing of U.S. allergy shipments, as well as trade inventory reductions, resulting in flat growth (cc) in the second quarter, according to Novartis.Alcon’s operating income plummeted to $150 million, a 41 percent drop in constant currencies, reflecting a $119 million intangible asset impairment. Core operating income fell 10 percent in constant currencies to $796 million, primarily impacted by product mix and slightly higher revenue provisions, as well as higher spending in R&D and M&S, Novartis said. Core operating income margin in constant currencies decreased by 3.7 percentage points; currencies had a negative impact of 1.8 percentage points, resulting in a net decrease of 5.5 percentage points to 31.1 percent of net sales.In the first half of 2015, Alcon posted net sales of $5.1 billion, up 2 percent in constant currencies. Surgical sales increased 2 percent in constant currencies, as solid cataract and vitreoretinal consumables sales were partly offset by lower equipment sales and competitive pressure on IOLs. Ophthalmic pharmaceuticals grew 3 percent in constant currencies, benefitting from double-digit growth of Systane in dry eye and fixed-dose combination products in glaucoma. Vision care, which was up 1 percent in constant currencies, was driven by strong continued uptake of Dailies Total1 and AirOptix Colors, but was offset by a continued decline in contact lens care and reduction in U.S. trade inventories of contact lenses, according to Novartis.Operating income amounted to $503 million, a 12 percent drop in constant currencies, reflecting the second quarter intangible asset impairment of $119 million. Core operating income was $1.7 billion, down 1 percent in constant currencies, primarily impacted by product mix and slightly higher revenue provisions, as well as higher spending in M&S. Core operating income margin in constant currencies decreased by 1.1 percentage points; currencies had a negative impact of 1.7 percentage points, resulting in a net decrease of 2.8 percentage points to 33.0 percent of net sales.