GlaxoSmithKline's first-quarter sales fall short - UPDATE

- Sales down 10 per cent on reported basis- EPS falls 20 per cent- US weakness offsets growth elsewhere- Company changes guidance languageThe strength of sterling had a big impact on results at GlaxoSmithKline (GSK) in the first quarter, while sales fell short of analysts' expectations due to weakness in the US market.Core turnover during the first three months of the year dropped by 10% on a reported basis to £5.61bn, with sales dampened by a stronger pound against the dollar, euro, yen and a range of emerging market currencies.Revenue at constant exchange rates (CER) was just 2% lower, but still came in below the consensus forecast of £5.84bn. Pharmaceutical and Vaccines sales were down 3% at £4.49bn over the year as growth across all of GSK's major regions was outweighed by a 10% decline in the US, where results were affected by continued competition in the respiratory markets and quarterly volatility in wholesaler/retailer stocking patterns.Meanwhile, Consumer Healthcare sales were flat at £1.13bn.Core earnings per share (EPS) were down 20% at 21p over the year but increased by 2% at CER, more or less in line with estimates. GSK maintained its guidance for EPS to grow by 4-8% at CER over the 2014 financial year. However, the company failed to give specific guidance for expected sales growth this year, simply saying that it "expect[s] to grow sales at CER". In February, it had forecast 2% growth for this year."The exact level of sales growth will depend on a number of factors, including the roll-out of new products, the level of generic competition to older products, including Lovaza for which a generic approval was granted in April, and the phasing of resupply of products in our Consumer Healthcare business," explained Chief Executive Sir Andrew Witty.GSK raised its quarterly dividend by 6% to 19p per share.The stock was 1.5% lower at 1,640.43p by 13:04.BC