ABBOTT PARK, Ill., Oct. 21, 2015
/PRNewswire/ -- Abbott (NYSE: ABT) today announced
financial results for the third quarter ended Sept. 30, 2015.
- Third-quarter worldwide sales of $5.2
billion increased 10.9 percent on an operational basis and
1.4 percent on a reported basis.
- Adjusted diluted EPS from continuing operations, which excludes
specified items, was $0.54 in the
third quarter, at the high end of the previous guidance range.
Reported diluted EPS from continuing operations under GAAP was
$0.39.
- Abbott narrowed its full-year 2015 adjusted EPS guidance range
for continuing operations to $2.14 to
$2.16. Projected full-year 2015 EPS for continuing
operations under GAAP is $1.59 to
$1.61.
- Abbott achieved double-digit emerging market sales growth on an
organic basis, which excludes the impact of 2014 acquisitions and
foreign exchange.
- Abbott continues to deliver improvement in gross margin, while
funding investments to expand its innovative product offerings and
build new markets. In the third quarter, Abbott launched
Similac® Sensitive Non-GMO and Go & Grow by
Similac® Non-GMO in the U.S.; and continued the
international rollout of its TECNIS® Symfony Extended
Range intraocular lens across multiple markets.
"Despite currency headwinds, we are on track to deliver the
financial commitments we set at the beginning of the year," said
Miles D. White, chairman and chief
executive officer, Abbott. "Our underlying growth is strong
and we continue to see robust demand in emerging markets."
THIRD-QUARTER BUSINESS OVERVIEW
Note: Prior year financial results have been
adjusted to exclude the sales from Abbott's
developed markets branded generics pharmaceuticals and animal
health businesses that were sold to Mylan and Zoetis,
respectively, in the first quarter 2015. Therefore, sales
and growth rates shown in the following charts represent continuing
operations.
Following are sales by business segment and commentary for
the third quarter and the first nine months of the year:
Total Company
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
3Q14
|
|
|
Sales
3Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
*
|
|
1,574
|
|
3,576
|
|
5,150
|
|
0.8
|
|
15.4
|
|
1.6
|
|
10.9
|
|
1.4
|
|
Nutrition
|
|
729
|
|
1,060
|
|
1,789
|
|
(0.7)
|
|
11.4
|
|
0.8
|
|
6.5
|
|
0.2
|
|
Diagnostics
|
|
348
|
|
808
|
|
1,156
|
|
6.8
|
|
8.3
|
|
(5.4)
|
|
7.9
|
|
(2.1)
|
|
Established
Pharmaceuticals
|
--
|
|
961
|
|
961
|
|
n/a
|
|
42.6
|
|
24.6
|
|
42.6
|
|
24.6
|
|
Medical
Devices
|
|
489
|
|
741
|
|
1,230
|
|
(0.8)
|
|
2.4
|
|
(11.3)
|
|
1.2
|
|
(7.4)
|
|
|
* Total Abbott Sales
from continuing operations include Other Sales of $14
million.
|
|
|
|
|
|
|
|
|
% Change vs.
9M14
|
|
|
Sales
9M15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
*
|
|
4,668
|
|
10,549
|
|
15,217
|
|
1.9
|
|
14.5
|
|
2.3
|
|
10.6
|
|
2.2
|
|
Nutrition
|
|
2,143
|
|
3,032
|
|
5,175
|
|
(0.2)
|
|
9.7
|
|
1.0
|
|
5.5
|
|
0.5
|
|
Diagnostics
|
|
1,025
|
|
2,401
|
|
3,426
|
|
6.6
|
|
7.9
|
|
(4.9)
|
|
7.5
|
|
(1.7)
|
|
Established
Pharmaceuticals
|
|
--
|
|
2,835
|
|
2,835
|
|
n/a
|
|
43.9
|
|
29.1
|
|
43.9
|
|
29.1
|
|
Medical
Devices
|
|
1,479
|
|
2,266
|
|
3,745
|
|
1.9
|
|
1.7
|
|
(11.5)
|
|
1.8
|
|
(6.7)
|
|
|
* Total Abbott Sales
from continuing operations include Other Sales of $36
million.
|
|
n/a = Not
Applicable.
|
|
Note: Operational
growth reflects percentage change over the prior year excluding the
impact of exchange rates.
|
Third-quarter 2015 worldwide sales of $5.2 billion increased 10.9 percent on an
operational basis and 1.4 percent on a reported basis, including an
unfavorable 9.5 percent effect of foreign exchange.
International sales increased 15.4 percent on an operational
basis and 1.6 percent on a reported basis in the third quarter.
Emerging market sales increased 21.2 percent on an operational
basis and 8.2 percent on a reported basis in the third quarter.
Excluding the impact of 2014 acquisitions and foreign exchange,
emerging market sales increased double digits in the quarter.
Nutrition
($ in
millions)
|
|
|
|
|
|
|
|
% Change vs.
3Q14
|
|
|
Sales
3Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
|
|
729
|
|
1,060
|
|
1,789
|
|
(0.7)
|
|
11.4
|
|
0.8
|
|
6.5
|
|
0.2
|
|
Pediatric
|
|
397
|
|
609
|
|
1,006
|
|
3.2
|
|
14.0
|
|
4.7
|
|
9.7
|
|
4.1
|
|
Adult
|
|
332
|
|
451
|
|
783
|
|
(4.9)
|
|
8.2
|
|
(4.1)
|
|
2.6
|
|
(4.5)
|
|
|
|
|
|
|
|
|
% Change vs.
9M14
|
|
|
Sales
9M15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
|
|
2,143
|
|
3,032
|
|
5,175
|
|
(0.2)
|
|
9.7
|
|
1.0
|
|
5.5
|
|
0.5
|
|
Pediatric
|
|
1,183
|
|
1,753
|
|
2,936
|
|
3.2
|
|
10.3
|
|
3.1
|
|
7.4
|
|
3.1
|
|
Adult
|
|
960
|
|
1,279
|
|
2,239
|
|
(4.2)
|
|
8.8
|
|
(1.7)
|
|
3.2
|
|
(2.8)
|
Worldwide Nutrition sales increased 6.5 percent in the third
quarter on an operational basis and 0.2 percent on a reported
basis, including an unfavorable 6.3 percent effect of foreign
exchange.
Worldwide Pediatric Nutrition sales increased 9.7 percent on an
operational basis and 4.1 percent on a reported basis in the
quarter, including an unfavorable 5.6 percent effect of foreign
exchange. Sales growth in the quarter was led by continued market
uptake of Eleva™ in the premium segment of the Chinese market and
Similac® Advance® non-GMO in the U.S.
During the quarter, Abbott launched Similac Sensitive Non-GMO and
Go & Grow by Similac Non-GMO in the U.S., providing parents
with additional formula choices.
Worldwide Adult Nutrition sales increased 2.6 percent on an
operational basis and decreased 4.5 percent on a reported basis in
the quarter, including an unfavorable 7.1 percent effect of foreign
exchange. Further category expansion is driving strong
international performance, including double-digit growth in
Latin America. As expected, U.S.
Adult Nutrition sales were impacted by competitive and market
dynamics.
Diagnostics
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
3Q14
|
|
|
Sales
3Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
|
|
348
|
|
808
|
|
1,156
|
|
6.8
|
|
8.3
|
|
(5.4)
|
|
7.9
|
|
(2.1)
|
|
Core
Laboratory
|
|
205
|
|
720
|
|
925
|
|
8.2
|
|
8.1
|
|
(5.9)
|
|
8.1
|
|
(3.1)
|
|
Molecular
|
|
47
|
|
66
|
|
113
|
|
(7.4)
|
|
10.4
|
|
(2.9)
|
|
2.8
|
|
(4.8)
|
|
Point of
Care
|
|
96
|
|
22
|
|
118
|
|
11.9
|
|
11.5
|
|
1.9
|
|
11.8
|
|
10.0
|
|
|
|
|
|
|
|
|
% Change vs.
9M14
|
|
|
Sales
9M15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
|
|
1,025
|
|
2,401
|
|
3,426
|
|
6.6
|
|
7.9
|
|
(4.9)
|
|
7.5
|
|
(1.7)
|
|
Core
Laboratory
|
|
596
|
|
2,142
|
|
2,738
|
|
6.3
|
|
7.3
|
|
(5.5)
|
|
7.1
|
|
(3.2)
|
|
Molecular
|
|
145
|
|
195
|
|
340
|
|
(2.8)
|
|
12.9
|
|
(0.7)
|
|
6.1
|
|
(1.6)
|
|
Point of
Care
|
|
284
|
|
64
|
|
348
|
|
13.1
|
|
12.2
|
|
3.6
|
|
12.9
|
|
11.2
|
Worldwide Diagnostics sales increased 7.9 percent in the third
quarter on an operational basis and decreased 2.1 percent on a
reported basis, including an unfavorable 10.0 percent effect of
foreign exchange. This business continues to deliver above-market
growth across emerging and developed markets, while continuing to
expand margins and develop next-generation diagnostic
platforms.
Core Laboratory Diagnostics sales increased 8.1 percent in the
quarter on an operational basis and decreased 3.1 percent on a
reported basis, including an unfavorable 11.2 percent effect of
foreign exchange. Operational sales growth in the quarter was led
by double-digit growth in emerging markets and continued share
gains resulting from customer-focused solutions that help
laboratories manage large testing volumes and increase operational
efficiencies.
Molecular Diagnostics sales increased 2.8 percent in the quarter
on an operational basis and decreased 4.8 percent on a reported
basis, including an unfavorable 7.6 percent effect of foreign
exchange. Infectious disease testing, which remains Abbott's core
focus area in Molecular Diagnostics, increased double digits in the
quarter on an operational basis. As expected, U.S. growth was
impacted by the planned scale down of the genetics business and
continued market dynamics in oncology.
Point of Care Diagnostics sales increased 11.8 percent in the
quarter on an operational basis as this business continues to
enhance its product offering and expand its geographic presence.
Sales increased 10.0 percent on a reported basis, including an
unfavorable 1.8 percent effect of foreign exchange.
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.
3Q14
|
|
|
Sales
3Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
|
|
--
|
|
961
|
|
961
|
|
n/a
|
|
42.6
|
|
24.6
|
|
42.6
|
|
24.6
|
|
Key Emerging
Markets
|
|
--
|
|
698
|
|
698
|
|
n/a
|
|
37.1
|
|
18.9
|
|
37.1
|
|
18.9
|
|
Other
|
|
--
|
|
263
|
|
263
|
|
n/a
|
|
60.2
|
|
42.8
|
|
60.2
|
|
42.8
|
|
|
|
|
|
|
|
|
% Change vs.
9M14
|
|
|
Sales
9M15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
|
|
--
|
|
2,835
|
|
2,835
|
|
n/a
|
|
43.9
|
|
29.1
|
|
43.9
|
|
29.1
|
|
Key Emerging
Markets
|
|
--
|
|
2,078
|
|
2,078
|
|
n/a
|
|
41.5
|
|
26.0
|
|
41.5
|
|
26.0
|
|
Other
|
|
--
|
|
757
|
|
757
|
|
n/a
|
|
51.0
|
|
38.3
|
|
51.0
|
|
38.3
|
Established Pharmaceuticals sales increased 42.6 percent in the
third quarter on an operational basis and 24.6 percent on a
reported basis, including an unfavorable 18.0 percent effect of
foreign exchange. Excluding the impact of 2014 acquisitions
and foreign exchange, sales increased double digits in the
quarter.
Sales in Key Emerging Markets increased 37.1 percent on an
operational basis and 18.9 percent on a reported basis, including
an unfavorable 18.2 percent effect of foreign exchange. Operational
sales growth in the quarter was led by India, Russia, Brazil, China, and several markets throughout
Latin America.
Medical Devices
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
3Q14
|
|
|
Sales
3Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
|
|
489
|
|
741
|
|
1,230
|
|
(0.8)
|
|
2.4
|
|
(11.3)
|
|
1.2
|
|
(7.4)
|
|
Vascular
|
|
278
|
|
394
|
|
672
|
|
(1.0)
|
|
1.5
|
|
(12.0)
|
|
0.5
|
|
(7.8)
|
|
Diabetes
Care
|
|
98
|
|
177
|
|
275
|
|
(3.8)
|
|
3.5
|
|
(10.8)
|
|
1.0
|
|
(8.4)
|
|
Medical
Optics
|
|
113
|
|
170
|
|
283
|
|
2.6
|
|
3.1
|
|
(10.0)
|
|
3.0
|
|
(5.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary
Devicesa)
|
|
191
|
|
336
|
|
527
|
|
4.8
|
|
1.1
|
|
(12.4)
|
|
2.3
|
|
(6.8)
|
|
Endovascularb)
|
|
73
|
|
58
|
|
131
|
|
5.8
|
|
4.0
|
|
(10.5)
|
|
4.9
|
|
(2.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
9M14
|
|
|
Sales
9M15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
|
Total
|
|
1,479
|
|
2,266
|
|
3,745
|
|
1.9
|
|
1.7
|
|
(11.5)
|
|
1.8
|
|
(6.7)
|
|
Vascular
|
|
859
|
|
1,233
|
|
2,092
|
|
3.8
|
|
0.8
|
|
(12.2)
|
|
2.0
|
|
(6.3)
|
|
Diabetes
Care
|
|
293
|
|
527
|
|
820
|
|
(1.1)
|
|
5.2
|
|
(9.2)
|
|
3.0
|
|
(6.5)
|
|
Medical
Optics
|
|
327
|
|
506
|
|
833
|
|
(0.1)
|
|
0.4
|
|
(12.3)
|
|
0.2
|
|
(7.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary
Devicesa)
|
|
571
|
|
1,055
|
|
1,626
|
|
5.2
|
|
0.1
|
|
(12.8)
|
|
1.6
|
|
(7.2)
|
|
Endovascularb)
|
|
210
|
|
178
|
|
388
|
|
7.3
|
|
5.4
|
|
(9.0)
|
|
6.3
|
|
(0.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 1.2 percent in the
third quarter on an operational basis and decreased 7.4 percent on
a reported basis, including an unfavorable 8.6 percent effect of
foreign exchange.
Worldwide sales of Vascular products increased 0.5 percent in
the quarter on an operational basis and decreased 7.8 percent on a
reported basis, including an unfavorable 8.3 percent effect of
foreign exchange. Sales of Abbott's MitraClip® device
for the treatment of mitral regurgitation increased double digits
globally, as Abbott continues to build the market for this
first-in-class device. During the quarter, Abbott continued to
broaden its foundation as a leader in the treatment of mitral valve
disease with the acquisition of Tendyne Holdings Inc. and an option
agreement to acquire Cephea Valve Technologies. Abbott also
launched XIENCE™ Alpine, its drug-eluting stent system designed for
enhanced performance in complex interventions, and Absorb™ GT1, its
bioresorbable vascular scaffold, in several markets across
Europe and Asia.
Worldwide Diabetes Care sales increased 1.0 percent in the
quarter on an operational basis and decreased 8.4 percent on a
reported basis, including an unfavorable 9.4 percent effect of
foreign exchange. Abbott's FreeStyle® Libre Flash
Glucose Monitoring System contributed to international sales growth
in the quarter.
Worldwide Medical Optics sales increased 3.0 percent in the
quarter on an operational basis and decreased 5.3 percent on a
reported basis, including an unfavorable 8.3 percent effect of
foreign exchange. Sales of cataract products, which represent
approximately 70 percent of Medical Optics sales, increased high
single digits, outpacing growth of the global cataract market, led
by continued adoption of recently launched products in the premium
intraocular lens segment.
ABBOTT NARROWS ITS FULL-YEAR 2015 EARNINGS-PER-SHARE
GUIDANCE
Abbott narrowed its full-year 2015 guidance range for earnings
per share from continuing operations, excluding specified items, to
$2.14 to $2.16. The mid-point of this
range remains unchanged from previous guidance.
Abbott forecasts net specified items related to continuing
operations for the full year 2015 of approximately $0.55 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 as well as a decrease in the fair value of
contingent consideration related to a business acquisition.
Including net specified items, projected earnings per share from
continuing operations under U.S. Generally Accepted Accounting
Principles (GAAP) would be $1.59 to
$1.61 for the full year 2015.
ABBOTT DECLARES 367TH CONSECUTIVE QUARTERLY
DIVIDEND
On September 17, 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 November 15,
2015, to shareholders of record at the close of business on
October 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 third-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
|
|
Third Quarter Ended
September 30, 2015 and 2014
|
|
(in millions, except
per share data)
|
|
(unaudited)
|
|
|
|
3Q15
|
|
3Q14
|
|
%
Change
|
|
|
Net Sales
|
|
$5,150
|
|
$5,079
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
2,242
|
|
2,319
|
|
(3.3)
|
|
|
Amortization of
intangible assets
|
|
151
|
|
132
|
|
14.1
|
|
|
Research and
development
|
|
378
|
|
305
|
|
23.7
|
|
|
Selling, general, and
administrative
|
|
1,666
|
|
1,595
|
|
4.5
|
|
|
Total Operating Cost
and Expenses
|
|
4,437
|
|
4,351
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
713
|
|
728
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
16
|
|
17
|
|
(5.4)
|
|
|
Net foreign exchange
(gain) loss
|
|
(14)
|
|
(1)
|
|
n/m
|
|
|
Other (income)
expense, net
|
|
(3)
|
|
(3)
|
|
(12.7)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
714
|
|
715
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
118
|
|
277
|
|
(57.2)
|
|
|
Earnings from
Continuing Operations
|
|
596
|
|
438
|
|
35.8
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
Discontinued Operations, net of taxes
|
|
(32)
|
|
100
|
|
n/m
|
1)
|
|
Gain on Sale of
Discontinued Operations, net of taxes
|
|
16
|
|
--
|
|
n/m
|
|
|
Net Earnings (Loss)
from Discontinued Operations, net of taxes
|
|
(16)
|
|
100
|
|
n/m
|
1)
|
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$580
|
|
$538
|
|
7.6
|
|
|
|
|
|
|
|
|
|
|
Net Earnings from
Continuing Operations, excluding Specified Items, as described below
|
|
|
|
|
|
|
|
|
$821
|
|
$818
|
|
0.3
|
2)
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
(Loss) per Common Share from:
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$0.39
|
|
$0.29
|
|
34.5
|
|
|
Discontinued
Operations
|
|
(0.01)
|
|
0.07
|
|
n/m
|
1)
|
|
Total
|
|
$0.38
|
|
$0.36
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$0.54
|
|
$0.54
|
|
--
|
2)
|
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,505
|
|
1,520
|
|
|
|
|
NOTES:
|
|
|
See tables below for an explanation of certain
non-GAAP financial information.
|
|
|
n/m = Percent change
is not meaningful.
|
|
|
See footnotes below.
|
|
|
|
1)
|
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.
|
|
|
|
2)
|
2015 Net Earnings
from Continuing Operations, excluding Specified Items, excludes net
after-tax charges of $225 million, or $0.15 per share, for
intangible amortization expense, expenses associated with cost
reduction initiatives and other expenses related to
acquisitions.
|
|
|
|
2014 Net Earnings
from Continuing Operations, excluding Specified Items, excludes net
after-tax charges of $380 million, or $0.25 per share, for
intangible amortization expense, expenses associated with cost
reduction initiatives and deal and other expenses related to the
acquisitions, as well as the tax expense associated with a one-time
repatriation of 2014 ex-U.S. earnings.
|
|
Abbott Laboratories
and Subsidiaries
|
|
Consolidated
Statement of Earnings
|
|
Nine Months Ended
September 30, 2015 and 2014
|
|
(in millions, except
per share data)
|
|
(unaudited)
|
|
|
|
9M15
|
|
9M14
|
|
%
Change
|
|
|
Net Sales
|
|
$15,217
|
|
$14,891
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
6,541
|
|
6,881
|
|
(4.9)
|
|
|
Amortization of
intangible assets
|
|
458
|
|
392
|
|
16.9
|
|
|
Research and
development
|
|
1,036
|
|
984
|
|
5.3
|
|
|
Selling, general, and
administrative
|
|
5,130
|
|
4,864
|
|
5.5
|
|
|
Total Operating Cost
and Expenses
|
|
13,165
|
|
13,121
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
2,052
|
|
1,770
|
|
15.9
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
49
|
|
54
|
|
(8.9)
|
|
|
Net foreign exchange
(gain) loss
|
|
(63)
|
|
--
|
|
n/m
|
|
|
Other (income)
expense, net
|
|
(287)
|
|
2
|
|
n/m
|
1)
|
|
Earnings from
Continuing Operations before taxes
|
|
2,353
|
|
1,714
|
|
37.2
|
|
|
|
|
|
|
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
442
|
|
627
|
|
(29.5)
|
|
|
Earnings from
Continuing Operations
|
|
1,911
|
|
1,087
|
|
75.7
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
Discontinued Operations, net of taxes
|
|
(7)
|
|
293
|
|
n/m
|
|
|
Gain on Sale of
Discontinued Operations, net of taxes
|
|
1,752
|
|
--
|
|
n/m
|
|
|
Net Earnings from
Discontinued Operations, net of taxes
|
|
1,745
|
|
293
|
|
n/m
|
2)
|
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$3,656
|
|
$1,380
|
|
165.0
|
|
|
|
|
|
|
|
|
|
|
Net Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$2,326
|
|
$2,094
|
|
11.0
|
3)
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$1.26
|
|
$0.71
|
|
77.5
|
|
|
Discontinued
Operations
|
|
1.15
|
|
0.19
|
|
n/m
|
2)
|
|
Total
|
|
$2.41
|
|
$0.90
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$1.53
|
|
$1.36
|
|
12.5
|
3)
|
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,509
|
|
1,529
|
|
|
|
|
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 $1.752 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 an unfavorable 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 $415 million, or $0.27 per share, for
intangible amortization expense, expenses associated with cost
reduction initiatives and other 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 $1.007 billion, or $0.65 per share, for
intangible amortization expense, expenses associated with cost
reduction initiatives and deal and other expenses related to
acquisitions, as well as the 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
|
|
Third Quarter Ended
September 30, 2015 and 2014
|
|
(in millions, except
per share data)
|
|
(unaudited)
|
|
|
|
3Q15
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$151
|
|
($151)
|
|
--
|
|
|
|
Gross
Margin
|
|
2,757
|
|
206
|
|
2,963
|
|
57.5%
|
|
R&D
|
|
378
|
|
(59)
|
|
319
|
|
6.2%
|
|
SG&A
|
|
1,666
|
|
(46)
|
|
1,620
|
|
31.4%
|
|
Other (Income)
Expense, Net
|
|
(3)
|
|
12
|
|
9
|
|
|
|
Earnings from
Continuing Operations before taxes
|
|
714
|
|
299
|
|
1,013
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
118
|
|
74
|
|
192
|
|
|
|
Net Earnings from
Continuing Operations
|
|
596
|
|
225
|
|
821
|
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.39
|
|
$0.15
|
|
$0.54
|
|
|
Specified items reflect intangible amortization expense of
$151 million and other expenses of
$148 million, primarily associated
with cost reduction initiatives and acquisitions.
|
|
3Q14
|
|
|
Historical
GAAP
Adj for Disc Ops 1)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$132
|
|
($132)
|
|
--
|
|
|
|
Gross
Margin
|
|
2,628
|
|
188
|
|
2,816
|
|
55.4%
|
|
R&D
|
|
305
|
|
(2)
|
|
303
|
|
6.0%
|
|
SG&A
|
|
1,595
|
|
(100)
|
|
1,495
|
|
29.4%
|
|
Other (Income)
Expense, Net
|
|
(3)
|
|
(4)
|
|
(7)
|
|
|
|
Earnings from
Continuing Operations before taxes
|
|
715
|
|
294
|
|
1,009
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
277
|
|
(86)
|
|
191
|
|
|
|
Net Earnings from
Continuing Operations
|
|
438
|
|
380
|
|
818
|
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.29
|
|
$0.25
|
|
$0.54
|
|
|
|
|
|
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
$132 million and other expenses of
$162 million, primarily associated
with cost reduction initiatives and deal and other expenses related
to acquisitions, as well as tax expense of $110 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
|
|
Nine Months Ended
September 30, 2015 and 2014
|
|
(in millions, except
per share data)
|
|
(unaudited)
|
|
|
|
9M15
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$458
|
|
($458)
|
|
--
|
|
|
|
Gross
Margin
|
|
8,218
|
|
577
|
|
$8,795
|
|
57.8%
|
|
R&D
|
|
1,036
|
|
(81)
|
|
955
|
|
6.3%
|
|
SG&A
|
|
5,130
|
|
(155)
|
|
4,975
|
|
32.7%
|
|
Other (Income)
Expense, Net
|
|
(287)
|
|
294
|
|
7
|
|
|
|
Earnings from
Continuing Operations before taxes
|
|
2,353
|
|
519
|
|
2,872
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
442
|
|
104
|
|
546
|
|
|
|
Net Earnings from
Continuing Operations
|
|
1,911
|
|
415
|
|
2,326
|
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$1.26
|
|
$0.27
|
|
$1.53
|
|
|
Specified items reflect intangible amortization expense of
$458 million and other expenses of
$348 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.
|
|
9M14
|
|
|
Historical
GAAP
Adj for Disc Ops 1)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$392
|
|
($392)
|
|
--
|
|
|
|
Gross
Margin
|
|
7,618
|
|
530
|
|
8,148
|
|
54.7%
|
|
R&D
|
|
984
|
|
(53)
|
|
931
|
|
6.3%
|
|
SG&A
|
|
4,864
|
|
(280)
|
|
4,584
|
|
30.8%
|
|
Other (Income)
Expense, Net
|
|
2
|
|
(8)
|
|
(6)
|
|
|
|
Earnings from
Continuing Operations before taxes
|
|
1,714
|
|
871
|
|
2,585
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
627
|
|
(136)
|
|
491
|
|
|
|
Net Earnings from
Continuing Operations
|
|
1,087
|
|
1,007
|
|
2,094
|
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.71
|
|
$0.65
|
|
$1.36
|
|
|
|
|
|
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
$392 million and other expenses of
$479 million, primarily associated
with cost reduction initiatives and deal and other expenses related
to acquisitions, as well as tax expense of $264 million associated with a one-time
repatriation of 2014 ex-U.S. earnings.
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
A reconciliation of the third-quarter tax rates for continuing
operations for 2015 and 2014 is shown below:
|
|
|
3Q15
|
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
|
As reported
(GAAP)
|
|
$714
|
|
$118
|
|
16.6%
|
|
|
Specified
items
|
|
299
|
|
74
|
|
|
|
|
Excluding
specified items
|
|
$1,013
|
|
$192
|
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q14
|
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
|
As reported
(GAAP)
|
|
$715
|
|
$277
|
|
38.7%
|
1)
|
|
Specified
items
|
|
294
|
|
(86)
|
|
|
|
|
Excluding
specified items
|
|
$1,009
|
|
$191
|
|
19.0%
|
|
|
|
|
1)
|
Reported tax rate on
a GAAP basis includes the impact of tax expense of $110 million
associated with a one-time repatriation of 2014 ex-U.S.
earnings.
|
A reconciliation of the year-to-date tax rates for continuing
operations for 2015 and 2014 is shown below:
|
|
|
9M15
|
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
|
As reported
(GAAP)
|
|
$2,353
|
|
$442
|
|
18.8%
|
|
|
Specified
items
|
|
519
|
|
104
|
|
|
|
|
Excluding
specified items
|
|
$2,872
|
|
$546
|
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9M14
|
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
|
As reported
(GAAP)
|
|
$1,714
|
|
$627
|
|
36.6%
|
2)
|
|
Specified
items
|
|
871
|
|
(136)
|
|
|
|
|
Excluding
specified items
|
|
$2,585
|
|
$491
|
|
19.0%
|
|
|
|
|
2)
|
Reported tax rate on
a GAAP basis includes the impact of tax expense of $264 million
associated with a one-time repatriation of 2014 ex-U.S.
earnings.
|
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SOURCE Abbott