ABBOTT PARK, Ill., July 22, 2015
/PRNewswire/ -- Abbott (NYSE: ABT) today announced
financial results for the second quarter ended June 30, 2015.
- Second-quarter worldwide sales of $5.2
billion increased 10.8 percent on an operational basis
and 2.2 percent on a reported basis. Worldwide sales increased
6.4 percent excluding the impact of 2014 acquisitions and
foreign exchange.
- Diluted EPS from continuing operations on both an adjusted and
GAAP basis was $0.52 in the second
quarter.
- Abbott's full-year 2015 adjusted EPS guidance range for
continuing operations remains unchanged at $2.10 to $2.20. Projected full-year 2015 EPS for
continuing operations under GAAP is $1.50 to
$1.60.
- Second-quarter gross margin ratio was ahead of expectations,
primarily driven by continued improvements in Diagnostics and
Nutrition.
- In the second quarter, Abbott received European approval for
Absorb GT1TM, which combines the world's first fully
dissolving stent with a next-generation delivery catheter;
completed submissions for regulatory approval of Absorb in
Japan and the U.S.; submitted for
U.S. regulatory approval of its FreeStyle® Libre Pro
Flash Glucose Monitoring System for professional use; and received
U.S. FDA clearance for a first-of-its-kind blood test for its
i-STAT® handheld system to aid in detecting early
pregnancy in emergency situations.
"We've achieved another quarter of strong sales growth led by
our global diagnostics and branded generics businesses," said
Miles D. White, chairman and chief
executive officer, Abbott. "We're well on track to achieve our
financial objectives for the year despite a challenging currency
environment."
SECOND-QUARTER BUSINESS OVERVIEW
Note: Prior year financial results have been
adjusted to exclude the sales from Abbott's
developed markets branded generics pharmaceuticals and animal
health businesses that were sold to Mylan and Zoetis,
respectively, in the first quarter 2015. Therefore, sales
and growth rates shown in the following charts represent continuing
operations.
Following are sales by business segment and commentary for
the second quarter and first half of the year:
Total Company
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
2Q14
|
|
|
Sales
2Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
*
|
|
1,592
|
|
3,578
|
|
5,170
|
|
3.1
|
|
14.2
|
|
1.8
|
|
10.8
|
|
2.2
|
Nutrition
|
|
729
|
|
988
|
|
1,717
|
|
0.6
|
|
6.3
|
|
(1.9)
|
|
3.9
|
|
(0.8)
|
Diagnostics
|
|
350
|
|
827
|
|
1,177
|
|
7.6
|
|
9.0
|
|
(4.3)
|
|
8.7
|
|
(1.0)
|
Established
Pharmaceuticals
|
--
|
|
977
|
|
977
|
|
n/a
|
|
46.0
|
|
31.3
|
|
46.0
|
|
31.3
|
Medical
Devices
|
|
505
|
|
784
|
|
1,289
|
|
3.0
|
|
3.1
|
|
(11.2)
|
|
3.1
|
|
(6.1)
|
|
* Total Abbott Sales
from continuing operations include Other Sales of $10
million.
|
|
|
|
|
|
|
|
|
% Change vs.
1H14
|
|
|
Sales
1H15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
*
|
|
3,094
|
|
6,973
|
|
10,067
|
|
2.5
|
|
13.9
|
|
2.6
|
|
10.4
|
|
2.6
|
Nutrition
|
|
1,414
|
|
1,972
|
|
3,386
|
|
--
|
|
8.7
|
|
1.2
|
|
5.0
|
|
0.7
|
Diagnostics
|
|
677
|
|
1,593
|
|
2,270
|
|
6.6
|
|
7.6
|
|
(4.6)
|
|
7.3
|
|
(1.6)
|
Established
Pharmaceuticals
|
--
|
|
1,874
|
|
1,874
|
|
n/a
|
|
44.5
|
|
31.5
|
|
44.5
|
|
31.5
|
Medical
Devices
|
|
990
|
|
1,525
|
|
2,515
|
|
3.3
|
|
1.4
|
|
(11.7)
|
|
2.1
|
|
(6.3)
|
|
* Total Abbott Sales
from continuing operations include Other Sales of $22
million.
|
n/a = Not
Applicable.
|
Note: Operational
growth reflects percentage change over the prior year excluding the
impact of exchange rates.
|
Second-quarter 2015 worldwide sales of $5.2 billion increased 10.8 percent on an
operational basis and 2.2 percent on a reported basis, including an
unfavorable 8.6 percent effect of foreign exchange. Worldwide sales
increased 6.4 percent excluding the impact of 2014 acquisitions and
foreign exchange, driven by strong performance in Established
Pharmaceuticals and Diagnostics.
International sales increased 14.2 percent on an operational
basis and 1.8 percent on a reported basis in the second
quarter.
Emerging market sales increased 20.6 percent on an operational
basis and 10.0 percent on a reported basis in the second quarter.
Excluding the impact of 2014 acquisitions and foreign exchange,
emerging market sales increased double digits in the quarter.
Nutrition
($ in
millions)
|
|
|
|
|
|
|
|
% Change vs.
2Q14
|
|
|
Sales
2Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
729
|
|
988
|
|
1,717
|
|
0.6
|
|
6.3
|
|
(1.9)
|
|
3.9
|
|
(0.8)
|
Pediatric
|
|
401
|
|
567
|
|
968
|
|
2.0
|
|
5.2
|
|
(1.2)
|
|
3.9
|
|
0.1
|
Adult
|
|
328
|
|
421
|
|
749
|
|
(1.1)
|
|
7.7
|
|
(2.7)
|
|
3.9
|
|
(2.0)
|
|
|
|
|
|
|
|
|
% Change vs.
1H14
|
|
|
Sales
1H15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
1,414
|
|
1,972
|
|
3,386
|
|
--
|
|
8.7
|
|
1.2
|
|
5.0
|
|
0.7
|
Pediatric
|
|
786
|
|
1,144
|
|
1,930
|
|
3.2
|
|
8.4
|
|
2.3
|
|
6.3
|
|
2.7
|
Adult
|
|
628
|
|
828
|
|
1,456
|
|
(3.8)
|
|
9.2
|
|
(0.3)
|
|
3.5
|
|
(1.8)
|
Worldwide Nutrition sales increased 3.9 percent in the second
quarter on an operational basis and decreased 0.8 percent on a
reported basis, including an unfavorable 4.7 percent effect of
foreign exchange.
Worldwide Pediatric Nutrition sales increased 3.9 percent on an
operational basis and 0.1 percent on a reported basis in the
quarter, including an unfavorable 3.8 percent effect of foreign
exchange. Growth in the quarter was driven by double-digit
operational growth in China and
several countries in Latin
America, partially offset by market dynamics in certain
Asian countries. Abbott continues to broaden its pediatric
nutrition portfolio in China and
recently launched an organic version of its infant
formula Eleva TM into the premium segment of the Chinese
infant formula market. In the U.S., Abbott provided parents with
another formula choice for their babies by launching
Similac® Advance® non-GMO.
Worldwide Adult Nutrition sales increased 3.9 percent on an
operational basis and decreased 2.0 percent on a reported basis in
the quarter, including an unfavorable 5.9 percent effect of foreign
exchange. Sales growth in the quarter was led by international
performance, including double-digit operational growth in
Latin America, as Abbott continues
to shape and grow its priority international markets. As expected,
U.S. Adult Nutrition sales were impacted by competitive and market
dynamics, primarily in the institutional segment.
Diagnostics
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
2Q14
|
|
|
Sales
2Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
350
|
|
827
|
|
1,177
|
|
7.6
|
|
9.0
|
|
(4.3)
|
|
8.7
|
|
(1.0)
|
Core
Laboratory
|
|
206
|
|
741
|
|
947
|
|
8.6
|
|
8.4
|
|
(4.9)
|
|
8.4
|
|
(2.3)
|
Molecular
|
|
50
|
|
66
|
|
116
|
|
(3.8)
|
|
18.3
|
|
2.6
|
|
8.4
|
|
(0.3)
|
Point of
Care
|
|
94
|
|
20
|
|
114
|
|
12.7
|
|
7.3
|
|
(1.7)
|
|
11.6
|
|
9.8
|
|
|
|
|
|
|
|
|
% Change vs.
1H14
|
|
|
Sales
1H15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
677
|
|
1,593
|
|
2,270
|
|
6.6
|
|
7.6
|
|
(4.6)
|
|
7.3
|
|
(1.6)
|
Core
Laboratory
|
|
391
|
|
1,422
|
|
1,813
|
|
5.3
|
|
6.9
|
|
(5.3)
|
|
6.6
|
|
(3.2)
|
Molecular
|
|
98
|
|
129
|
|
227
|
|
(0.4)
|
|
14.2
|
|
0.4
|
|
7.9
|
|
--
|
Point of
Care
|
|
188
|
|
42
|
|
230
|
|
13.7
|
|
12.6
|
|
4.5
|
|
13.5
|
|
11.9
|
Worldwide Diagnostics sales increased 8.7 percent in the second
quarter on an operational basis and decreased 1.0 percent on a
reported basis, including an unfavorable 9.7 percent effect of
foreign exchange. This business continues to deliver above-market
growth across emerging and developed markets.
Core Laboratory Diagnostics sales increased 8.4 percent in the
quarter on an operational basis and decreased 2.3 percent on a
reported basis, including an unfavorable 10.7 percent effect of
foreign exchange. Above-market sales growth this quarter, including
double-digit operational sales growth in emerging markets, was
driven by share gains in the U.S. and internationally as this
business continues to win key new accounts with its
customer-focused solutions.
Molecular Diagnostics sales increased 8.4 percent in the quarter
on an operational basis and decreased 0.3 percent on a reported
basis, including an unfavorable 8.7 percent effect of foreign
exchange. Abbott's core focus area of infectious disease testing,
which represents approximately 55 percent of its Molecular
Diagnostics sales, increased double digits in the quarter on an
operational basis. As expected, U.S. growth was impacted by
continued market dynamics in the oncology business and the planned
scale down of the genetics business.
Point of Care Diagnostics sales increased 11.6 percent in the
quarter on an operational basis as this business continues to build
and expand its presence in targeted developed and emerging markets.
Sales increased 9.8 percent on a reported basis, including an
unfavorable 1.8 percent effect of foreign exchange. In the second
quarter, Abbott received U.S. FDA clearance for its i-STAT Total
β-hCG test, a first-of-its-kind handheld and whole blood point of
care test that can rapidly and accurately detect pregnancy in the
early stages, helping doctors make faster treatment decisions for
women in emergency situations. In addition, Abbott launched its
wireless i-STAT handheld system in Europe, which enables faster decision-making
for doctors and enhances workflow by transmitting test results to
patient medical records in minutes.
Established Pharmaceuticals
($ in millions)
Note: Prior year financial results have been
adjusted to exclude the sales from the
developed markets branded generics pharmaceuticals business,
which was sold to Mylan on Feb. 27,
2015. Therefore, sales and growth rates shown in the
following charts represent continuing operations.
|
|
|
|
|
|
|
|
% Change vs.
2Q14
|
|
|
Sales
2Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
--
|
|
977
|
|
977
|
|
n/a
|
|
46.0
|
|
31.3
|
|
46.0
|
|
31.3
|
Key Emerging
Markets
|
|
--
|
|
727
|
|
727
|
|
n/a
|
|
43.2
|
|
28.3
|
|
43.2
|
|
28.3
|
Other
|
|
--
|
|
250
|
|
250
|
|
n/a
|
|
54.8
|
|
40.5
|
|
54.8
|
|
40.5
|
|
|
|
|
|
|
|
|
% Change vs.
1H14
|
|
|
Sales
1H15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
--
|
|
1,874
|
|
1,874
|
|
n/a
|
|
44.5
|
|
31.5
|
|
44.5
|
|
31.5
|
Key Emerging
Markets
|
|
--
|
|
1,380
|
|
1,380
|
|
n/a
|
|
43.9
|
|
29.9
|
|
43.9
|
|
29.9
|
Other
|
|
--
|
|
494
|
|
494
|
|
n/a
|
|
46.4
|
|
36.1
|
|
46.4
|
|
36.1
|
Established Pharmaceuticals sales increased 46.0 percent in the
second quarter on an operational basis and 31.3 percent on a
reported basis, including an unfavorable 14.7 percent effect of
foreign exchange. Excluding the impact of 2014 acquisitions
and foreign exchange, sales increased double digits in the
quarter.
Key Emerging Markets include India, Russia, China, Brazil
and Colombia, along with several
additional markets that represent the most attractive long-term
growth opportunities for Abbott's branded generics product
portfolio. Sales in these geographies increased 43.2 percent on an
operational basis, driven by above-market growth in India, China,
and Colombia. Sales increased 28.3
percent on a reported basis, including an unfavorable 14.9 percent
effect of foreign exchange.
In Latin America, sales
increased double digits in the quarter on an operational basis with
and without the impact of the 2014 acquisition of CFR
Pharmaceuticals, which broadened Abbott's presence and product
portfolio in the region.
Medical Devices
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
2Q14
|
|
|
Sales
2Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
505
|
|
784
|
|
1,289
|
|
3.0
|
|
3.1
|
|
(11.2)
|
|
3.1
|
|
(6.1)
|
Vascular
|
|
298
|
|
424
|
|
722
|
|
6.0
|
|
1.5
|
|
(12.4)
|
|
3.2
|
|
(5.6)
|
Diabetes
Care
|
|
93
|
|
185
|
|
278
|
|
(4.3)
|
|
10.1
|
|
(5.8)
|
|
5.3
|
|
(5.3)
|
Medical
Optics
|
|
114
|
|
175
|
|
289
|
|
2.0
|
|
0.1
|
|
(13.4)
|
|
0.8
|
|
(8.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary
Devicesa)
|
|
195
|
|
363
|
|
558
|
|
6.9
|
|
0.9
|
|
(12.8)
|
|
2.7
|
|
(6.8)
|
Endovascularb)
|
|
70
|
|
62
|
|
132
|
|
3.8
|
|
5.4
|
|
(9.9)
|
|
4.6
|
|
(3.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a)
Includes DES / BVS product portfolio, structural heart, guidewires,
balloon catheters, and other coronary products.
|
b)
Includes vessel closure, carotid stents and other peripheral
products.
|
|
|
|
|
|
|
|
|
% Change vs.
1H14
|
|
|
Sales
1H15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
990
|
|
1,525
|
|
2,515
|
|
3.3
|
|
1.4
|
|
(11.7)
|
|
2.1
|
|
(6.3)
|
Vascular
|
|
581
|
|
839
|
|
1,420
|
|
6.3
|
|
0.5
|
|
(12.3)
|
|
2.6
|
|
(5.5)
|
Diabetes
Care
|
|
195
|
|
350
|
|
545
|
|
0.3
|
|
6.0
|
|
(8.3)
|
|
4.1
|
|
(5.4)
|
Medical
Optics
|
|
214
|
|
336
|
|
550
|
|
(1.5)
|
|
(1.0)
|
|
(13.4)
|
|
(1.2)
|
|
(9.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary
Devicesa)
|
|
380
|
|
719
|
|
1,099
|
|
5.4
|
|
(0.4)
|
|
(13.0)
|
|
1.4
|
|
(7.4)
|
Endovascularb)
|
|
137
|
|
120
|
|
257
|
|
8.0
|
|
6.1
|
|
(8.3)
|
|
7.0
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a)
Includes DES / BVS product portfolio, structural heart, guidewires,
balloon catheters, and other coronary products.
|
b)
Includes vessel closure, carotid stents and other peripheral
products.
|
Worldwide Medical Devices sales increased 3.1 percent in the
second quarter on an operational basis and decreased 6.1 percent on
a reported basis, including an unfavorable 9.2 percent effect of
foreign exchange.
Worldwide sales of Vascular products increased 3.2 percent in
the quarter on an operational basis and decreased 5.6 percent on a
reported basis, including an unfavorable 8.8 percent effect of
foreign exchange. Sales of Abbott's MitraClip®
structural heart device for the treatment of mitral regurgitation
increased double digits globally, including strong momentum in the
U.S. as Abbott continues to build and shape the market for this
first-in-class device. Abbott recently received European approval
for Absorb GT1, which combines the Absorb bioresorbable vascular
scaffold with a next-generation delivery catheter. Abbott also
completed submissions for regulatory approval of Absorb in
Japan and the U.S., and expects to
submit for regulatory approval in China in the coming months.
Worldwide Diabetes Care sales increased 5.3 percent in the
quarter on an operational basis and decreased 5.3 percent on a
reported basis, including an unfavorable 10.6 percent effect of
foreign exchange. International sales growth was driven by
continued uptake of Abbott's revolutionary new FreeStyle Libre
Flash Glucose Monitoring System. In the quarter, Abbott submitted
FreeStyle Libre Pro, its professional-use version of FreeStyle
Libre, for regulatory approval in the U.S. FreeStyle Libre Pro incorporates the same sensor-based
technology as FreeStyle Libre and has the potential to change how
healthcare providers manage diabetic patients.
Worldwide Medical Optics sales increased 0.8 percent in the
quarter on an operational basis and decreased 8.0 percent on a
reported basis, including an unfavorable 8.8 percent effect of
foreign exchange. Sales growth in the quarter was impacted by
market dynamics in the cataract and refractive businesses. Abbott
expects improved sales growth over the rest of the year as it
continues to drive adoption of recently launched products.
ABBOTT'S FULL-YEAR 2015 EARNINGS-PER-SHARE GUIDANCE RANGE
REMAINS UNCHANGED
Abbott's full-year 2015 guidance range for earnings per share
from continuing operations, excluding specified items, remains
unchanged at $2.10 to $2.20,
representing strong growth at the mid-point of the guidance
range.
Abbott forecasts net specified items related to continuing
operations for the full year 2015 of approximately $0.60 per share. Specified items include
intangible amortization expense, charges associated with cost
reduction initiatives, and expenses related to acquisitions,
partially offset by a gain on the sale of a portion of Abbott's
position in Mylan stock.
Including net specified items, projected earnings per share from
continuing operations under U.S. Generally Accepted Accounting
Principles (GAAP) would be $1.50 to
$1.60 for the full year 2015.
ABBOTT DECLARES 366TH CONSECUTIVE QUARTERLY
DIVIDEND
On June 12, 2015, the board of
directors of Abbott declared the company's quarterly dividend of
$0.24 per share. Abbott's cash
dividend is payable on Aug. 15, 2015,
to shareholders of record at the close of business on July 15, 2015.
Abbott is a member of the S&P 500 Dividend Aristocrats
Index, which tracks companies that have annually increased their
dividend for 25 consecutive years.
About Abbott:
Abbott is a global healthcare company devoted to improving life
through the development of products and technologies that span the
breadth of healthcare. With a portfolio of leading, science-based
offerings in diagnostics, medical devices, nutritionals and branded
generic pharmaceuticals, Abbott serves people in more than 150
countries and employs approximately 73,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at
@AbbottNews.
Abbott will webcast its live second-quarter earnings conference
call through its Investor Relations website at
www.abbottinvestor.com at 8 a.m. Central
time today. An archived edition of the call will be
available after 11 a.m. Central
time.
— Private Securities Litigation Reform
Act of 1995 —
A Caution Concerning Forward-Looking
Statements
Some statements in this news release may be forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995. Abbott cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially from those indicated in the
forward-looking statements. Economic, competitive, governmental,
technological and other factors that may affect Abbott's operations
are discussed in Item 1A, "Risk Factors,'' to our Annual Report on
Securities and Exchange Commission Form 10-K for the year ended
Dec. 31, 2014, and are incorporated
by reference. Abbott undertakes no obligation to release publicly
any revisions to forward-looking statements as a result of
subsequent events or developments, except as required by
law.
Abbott Laboratories
and Subsidiaries
|
Consolidated
Statement of Earnings
|
Second Quarter Ended
June 30, 2015 and 2014
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
2Q15
|
|
2Q14
|
|
%
Change
|
|
Net Sales
|
|
$5,170
|
|
$5,057
|
|
2.2
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
2,218
|
|
2,288
|
|
(3.0)
|
|
Amortization of
intangible assets
|
|
151
|
|
133
|
|
13.6
|
|
Research and
development
|
|
345
|
|
310
|
|
11.1
|
|
Selling, general, and
administrative
|
|
1,727
|
|
1,649
|
|
4.8
|
|
Total Operating Cost
and Expenses
|
|
4,441
|
|
4,380
|
|
1.4
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
729
|
|
677
|
|
7.5
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
17
|
|
17
|
|
2.7
|
|
Net foreign exchange
(gain) loss
|
|
5
|
|
--
|
|
n/m
|
|
Other (income)
expense, net
|
|
(279)
|
|
2
|
|
n/m
|
1)
|
Earnings from
Continuing Operations before taxes
|
|
986
|
|
658
|
|
49.8
|
|
|
|
|
|
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
200
|
|
233
|
|
(14.5)
|
|
Earnings from
Continuing Operations
|
|
786
|
|
425
|
|
85.1
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
Discontinued Operations, net of taxes
|
|
(2)
|
|
41
|
|
n/m
|
2)
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$784
|
|
$466
|
|
68.3
|
|
|
|
|
|
|
|
|
|
Net Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$786
|
|
$741
|
|
6.1
|
3)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$0.52
|
|
$0.28
|
|
85.7
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
--
|
|
0.02
|
|
(100.0)
|
2)
|
|
|
|
|
|
|
|
|
Total
|
|
$0.52
|
|
$0.30
|
|
73.3
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$0.52
|
|
$0.49
|
|
6.1
|
3)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,504
|
|
1,517
|
|
|
|
|
NOTES:
|
|
See tables below for
an explanation of certain non-GAAP financial
information.
|
|
n/m = Percent change
is not meaningful.
|
|
See footnotes
below.
|
1)
|
2015 Other (income)
expense includes a gain on the sale of a portion of Abbott's
position in Mylan stock and a decrease in the fair value of
contingent consideration related to a business acquisition, both
reported as specified items.
|
|
|
2)
|
2014 Earnings and
Diluted Earnings per Common Share from Discontinued Operations
reflect financial results from the developed markets branded
generics pharmaceuticals and animal health businesses, and
favorable adjustments to tax expense as a result of the resolution
of various tax positions from previous years related to AbbVie
operations.
|
|
|
3)
|
2015 Net Earnings
from Continuing Operations, excluding Specified Items, excludes net
after-tax charges of less than $1 million as intangible
amortization expense, expenses associated with cost reduction
initiatives and expenses related to acquisitions were offset by a
gain on the sale of a portion of Abbott's position in Mylan stock
and a decrease in the fair value of contingent consideration
related to a business acquisition.
|
|
|
|
2014 Net Earnings
from Continuing Operations, excluding Specified Items, excludes net
after-tax charges of $316 million, or $0.21 per share, for
intangible amortization expense, expenses associated with cost
reduction initiatives and tax expense associated with a one-time
repatriation of 2014 ex-U.S. earnings.
|
Abbott Laboratories
and Subsidiaries
|
Consolidated
Statement of Earnings
|
First Half Ended June
30, 2015 and 2014
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
1H15
|
|
1H14
|
|
%
Change
|
|
Net Sales
|
|
$10,067
|
|
$9,812
|
|
2.6
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
4,299
|
|
4,562
|
|
(5.8)
|
|
Amortization of
intangible assets
|
|
307
|
|
260
|
|
18.2
|
|
Research and
development
|
|
658
|
|
679
|
|
(3.0)
|
|
Selling, general, and
administrative
|
|
3,464
|
|
3,269
|
|
6.0
|
|
Total Operating Cost
and Expenses
|
|
8,728
|
|
8,770
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
1,339
|
|
1,042
|
|
28.4
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
33
|
|
37
|
|
(10.5)
|
|
Net foreign exchange
(gain) loss
|
|
(49)
|
|
1
|
|
n/m
|
|
Other (income)
expense, net
|
|
(284)
|
|
5
|
|
n/m
|
1)
|
Earnings from
Continuing Operations before taxes
|
|
1,639
|
|
999
|
|
63.9
|
|
|
|
|
|
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
324
|
|
350
|
|
(7.7)
|
|
Earnings from
Continuing Operations
|
|
1,315
|
|
649
|
|
102.5
|
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
|
25
|
|
192
|
|
(87.1)
|
|
Gain on Sale of
Discontinued Operations, net of taxes
|
|
1,736
|
|
--
|
|
n/m
|
|
Net Earnings from
Discontinued Operations, net of taxes
|
|
1,761
|
|
192
|
|
n/m
|
2)
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$3,076
|
|
$841
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Net Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$1,505
|
|
$1,276
|
|
17.9
|
3)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$0.87
|
|
$0.42
|
|
107.1
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
1.16
|
|
0.13
|
|
n/m
|
2)
|
|
|
|
|
|
|
|
|
Total
|
|
$2.03
|
|
$0.55
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$0.99
|
|
$0.83
|
|
19.3
|
3)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,511
|
|
1,532
|
|
|
|
|
NOTES:
|
|
See tables below
for an explanation of certain non-GAAP financial
information.
|
|
n/m = Percent change
is not meaningful.
|
|
See footnotes
below.
|
1)
|
2015 Other (income)
expense includes a gain on the sale of a portion of Abbott's
position in Mylan stock and a decrease in the fair value of
contingent consideration related to a business acquisition, both
reported as specified items.
|
|
|
2)
|
2015 Earnings and
Diluted Earnings per Common Share from Discontinued Operations
reflect the after-tax gain of $1.736 billion on the sale of the
developed markets branded generics pharmaceuticals and animal
health businesses to Mylan on Feb. 27, 2015 and Zoetis on Feb. 10,
2015, respectively; the first-quarter financial results from these
businesses up to the date of sale; and a favorable adjustment to
tax expense as a result of the resolution of various tax positions
from previous years related to AbbVie operations.
|
|
|
|
2014 Earnings and
Diluted Earnings per Common Share from Discontinued Operations
reflect financial results from the developed markets branded
generics pharmaceuticals and animal health businesses, and
favorable adjustments to tax expense as a result of the resolution
of various tax positions from previous years related to AbbVie
operations and the developed markets branded generics
pharmaceuticals business.
|
|
|
3)
|
2015 Net Earnings
from Continuing Operations, excluding Specified Items, excludes net
after-tax charges of $190 million, or $0.12 per share, for
intangible amortization expense, expenses associated with cost
reduction initiatives and expenses related to acquisitions,
partially offset by a gain on the sale of a portion of Abbott's
position in Mylan stock and a decrease in the fair value of
contingent consideration related to a business
acquisition.
|
|
|
|
2014 Net Earnings
from Continuing Operations, excluding Specified Items, excludes net
after-tax charges of $627 million, or $0.41 per share, for
intangible amortization expense, expenses associated with cost
reduction initiatives and tax expense associated with a one-time
repatriation of 2014 ex-U.S. earnings.
|
NON-GAAP
RECONCILIATION OF FINANCIAL INFORMATION FROM CONTINUING
OPERATIONS
|
|
Abbott Laboratories
and Subsidiaries
|
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
|
Second Quarter Ended
June 30, 2015 and 2014
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
2Q15
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$151
|
|
($151)
|
|
--
|
|
|
Gross
Margin
|
|
2,801
|
|
185
|
|
$2,986
|
|
57.8%
|
R&D
|
|
345
|
|
(20)
|
|
325
|
|
6.3%
|
SG&A
|
|
1,727
|
|
(67)
|
|
1,660
|
|
32.1%
|
Other (Income)
Expense, Net
|
|
(279)
|
|
287
|
|
8
|
|
|
Earnings from
Continuing Operations before taxes
|
|
986
|
|
(15)
|
|
971
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
200
|
|
(15)
|
|
185
|
|
|
Net Earnings from
Continuing Operations
|
|
786
|
|
--
|
|
786
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.52
|
|
--
|
|
$0.52
|
|
|
Specified items reflect intangible amortization expense of
$151 million and other expenses of
$121 million, primarily associated
with cost reduction initiatives and acquisitions, partially offset
by a gain on the sale of a portion of Abbott's position in Mylan
stock of $207 million and a decrease
in the fair value of contingent consideration related to a business
acquisition.
|
|
2Q14
|
|
|
Historical
GAAP
Adj for Disc Ops1)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$133
|
|
($133)
|
|
--
|
|
|
Gross
Margin
|
|
2,636
|
|
160
|
|
2,796
|
|
55.3%
|
R&D
|
|
310
|
|
(1)
|
|
309
|
|
6.1%
|
SG&A
|
|
1,649
|
|
(95)
|
|
1,554
|
|
30.7%
|
Other (Income)
Expense, Net
|
|
2
|
|
(2)
|
|
--
|
|
|
Earnings from
Continuing Operations before taxes
|
|
658
|
|
258
|
|
916
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
233
|
|
(58)
|
|
175
|
|
|
Net Earnings from
Continuing Operations
|
|
425
|
|
316
|
|
741
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.28
|
|
$0.21
|
|
$0.49
|
|
|
|
|
1)
|
Historical GAAP
financial results, adjusted for the discontinued operations, as
previously reported in Abbott's 8-K filing dated Jan. 27,
2015.
|
Specified items reflect intangible amortization expense of
$133 million and other expenses,
primarily associated with cost reduction initiatives of
$125 million, as well as tax expense
of $101 million associated with a
one-time repatriation of 2014 ex-U.S. earnings.
Abbott Laboratories
and Subsidiaries
|
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
|
First Half Ended June
30, 2015 and 2014
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
1H15
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$307
|
|
($307)
|
|
--
|
|
|
Gross
Margin
|
|
5,461
|
|
371
|
|
$5,832
|
|
57.9%
|
R&D
|
|
658
|
|
(22)
|
|
636
|
|
6.3%
|
SG&A
|
|
3,464
|
|
(109)
|
|
3,355
|
|
33.3%
|
Other (Income)
Expense, Net
|
|
(284)
|
|
282
|
|
(2)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
1,639
|
|
220
|
|
1,859
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
324
|
|
30
|
|
354
|
|
|
Net Earnings from
Continuing Operations
|
|
1,315
|
|
190
|
|
1,505
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.87
|
|
$0.12
|
|
$0.99
|
|
|
Specified items reflect intangible amortization expense of
$307 million and other expenses of
$200 million, primarily associated
with cost reduction initiatives and acquisitions, partially offset
by a gain on the sale of a portion of Abbott's position in Mylan
stock of $207 million and a decrease
in the fair value of contingent consideration related to a business
acquisition.
|
|
1H14
|
|
|
Historical
GAAP
Adj for Disc Ops1)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$260
|
|
($260)
|
|
--
|
|
|
Gross
Margin
|
|
4,990
|
|
342
|
|
5,332
|
|
54.3%
|
R&D
|
|
679
|
|
(51)
|
|
628
|
|
6.4%
|
SG&A
|
|
3,269
|
|
(180)
|
|
3,089
|
|
31.5%
|
Other (Income)
Expense, Net
|
|
5
|
|
(4)
|
|
1
|
|
|
Earnings from
Continuing Operations before taxes
|
|
999
|
|
577
|
|
1,576
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
350
|
|
(50)
|
|
300
|
|
|
Net Earnings from
Continuing Operations
|
|
649
|
|
627
|
|
1,276
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.42
|
|
$0.41
|
|
$0.83
|
|
|
|
|
1)
|
Historical GAAP
financial results, adjusted for the discontinued operations, as
previously reported in Abbott's 8-K filing dated Jan. 27,
2015.
|
Specified items reflect intangible amortization expense of
$260 million and other expenses,
primarily associated with cost reduction initiatives of
$317 million, as well as tax expense
of $154 million associated with a
one-time repatriation of 2014 ex-U.S. earnings.
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
A reconciliation of the second-quarter tax rates for continuing
operations for 2015 and 2014 is shown below:
|
|
|
2Q15
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$986
|
|
$200
|
|
20.2%
|
|
Specified
items
|
|
(15)
|
|
(15)
|
|
|
|
Excluding
specified items
|
|
$971
|
|
$185
|
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q14
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$658
|
|
$233
|
|
35.4%
|
1)
|
Specified
items
|
|
258
|
|
(58)
|
|
|
|
Excluding
specified items
|
|
$916
|
|
$175
|
|
19.0%
|
|
|
|
1)
|
Reported tax rate on
a GAAP basis includes the impact of tax expense of $101 million
associated with a one-time repatriation of 2014 ex-U.S.
earnings.
|
A reconciliation of the year-to-date tax rates for continuing
operations for 2015 and 2014 is shown below:
|
|
|
1H15
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$1,639
|
|
$324
|
|
19.7%
|
|
Specified
items
|
|
220
|
|
30
|
|
|
|
Excluding
specified items
|
|
$1,859
|
|
$354
|
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1H14
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$999
|
|
$350
|
|
35.0%
|
2)
|
Specified
items
|
|
577
|
|
(50)
|
|
|
|
Excluding
specified items
|
|
$1,576
|
|
$300
|
|
19.0%
|
|
|
|
2)
|
Reported tax rate on
a GAAP basis includes the impact of tax expense of $154 million
associated with a one-time repatriation of 2014 ex-U.S.
earnings.
|
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SOURCE Abbott