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Novartis warns of currency drag on 2015 earnings

* Q1 sales $12.5 bln vs $12.6 bln in Reuters poll

* Q1 sales from continuing operations $11.9 bln, down 7 pct

* Q1 core operating income down 4 pct yoy

* Maintains 2015 guidance (Recasts, adds detail)

ZURICH, April 23 (Reuters) - Swiss drugmaker Novartis on Thursday posted declining sales in the first quarter and cautioned that dollar strength may be a bigger-than-expected drag on full-year figures.

The Basel-based firm said the strong dollar -- its reporting currency -- would shave 10 percent off 2015 sales and 13 percent from core operating income if April exchange rates continue for the rest of the year.

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In January the company forecast the 2015 currency hit would be 7 percentage points on net sales and 12 percentage points on core operating income from continuing operations.

Novartis (Xetra: 904278 - news) maintained its 2015 guidance of mid-single-digit sales growth in 2015 and high-single-digit growth in core operating income after stripping out the impact of currency fluctuations.

The group reported a 7 percent year-on-year fall in first-quarter net sales in continuing operations to $11.9 billion, while sales rose 3 percent at constant currencies. Total (Swiss: FP.SW - news) group net sales were $12.5 billion.

Novartis generated net income from continuing operations of $3.2 billion, down 4 percent in dollar terms on the same period last year but up 8 percent at constant currencies. Total group net income was $3.1 billion.

Analysts in a Reuters poll had forecast total group net sales of $12.6 billion and group core net income of $2.9 billion.

Cross-town rival Roche on Wednesday beat expectations for the first quarter with a 3 percent rise in sales on a strong showing from its cancer drugs and a recently launched treatment for a deadly lung disorder. (Reporting by Joshua Franklin; Editing by Michael Shields)