M beats by $0.03, beats on revs; reaffirms FY16 guidance
- Reports Q1 (Mar) earnings of $1.95 per share, excluding $0.10 gain from adopting new FASB accounting standard, $0.03 better than the Capital IQ Consensus of $1.92; revenues fell 2.2% year/year to $7.41 bln vs the $7.33 bln Capital IQ Consensus.
- Organic local-currency sales declined 0.8% while acquisitions, net of divestitures, added 1.6 percent to sales. Foreign currency translation reduced sales by 3.0 percent year-on-year.
- Organic local-currency sales growth was 6.2 percent in Health Care, 2.8 percent in Consumer and 2.4 percent in Safety and Graphics, with declines of 1.9 percent in Industrial and 11.7 percent in Electronics and Energy. On a geographic basis, organic local-currency sales growth was 4.2 percent in Latin America/Canada, 1.7 percent in EMEA (Europe, Middle East and Africa) and 0.3 percent in the U.S., with a decline of 5.6 percent in Asia Pacific.
- Co reaffirms guidance for FY16, sees EPS of $8.10-8.45, excluding non-recurring items, vs. $8.24 Capital IQ Consensus; organic sales +1-3% ex-FX