ABBOTT PARK, Ill., April 22, 2015
/PRNewswire/ -- Abbott (NYSE: ABT) today announced
financial results for the first quarter ended March 31, 2015.
- First-quarter worldwide sales of $4.9
billion increased 10.0 percent on an operational basis,
including double-digit growth in emerging markets. Worldwide sales
increased 3.0 percent on a reported basis.
- Adjusted diluted EPS from continuing operations, which excludes
specified items, was $0.47 in the
first quarter, above previous guidance range and representing
growth of 38.2 percent. Reported diluted EPS from continuing
operations under GAAP was $0.35.
- 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 $1.33 to
$1.43.
- In February, Abbott completed the sale of its developed markets
branded generics pharmaceuticals business to Mylan. The Established
Pharmaceuticals business is now focused entirely on emerging
markets.
- Abbott launched several new products beginning this year,
including FreeStyle® Libre Pro Flash Glucose Monitoring
System for professional use in India; new slim-designed blood glucose meter
FreeStyle Precision Neo in the U.S.; TECNIS® Multifocal
Low Add and TECNIS Preloaded intraocular lenses (IOLs) in the U.S.;
a new drug-eluting stent system XIENCE AlpineTM in
Japan; and Ensure® for
retail adult nutrition in China.
- In March, Abbott opened a new state-of-the-art nutrition pilot
plant in Singapore, which also
will serve as an R&D hub in Asia and allow Abbott to more rapidly
incorporate local consumer preferences.
"We're off to a good start this year, with particularly strong
performance in our branded generics, international nutrition and
global diagnostics businesses," said Miles
D. White, chairman and chief executive officer, Abbott.
FIRST-QUARTER BUSINESS OVERVIEW
Note: Prior year financial results have been
adjusted to exclude the sales from Abbott's
developed markets branded generics pharmaceuticals and animal
health businesses that were sold to Mylan and Zoetis,
respectively, in the first quarter 2015. Therefore, sales
and growth rates shown in the following chart represent continuing
operations.
Following are sales by business segment and commentary for
the first quarter:
Total Company
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q14
|
|
|
Sales
1Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
*
|
|
1,502
|
|
3,395
|
|
4,897
|
|
1.9
|
|
13.6
|
|
3.5
|
|
10.0
|
|
3.0
|
Nutrition
|
|
685
|
|
984
|
|
1,669
|
|
(0.6)
|
|
11.4
|
|
4.5
|
|
6.3
|
|
2.3
|
Diagnostics
|
|
327
|
|
766
|
|
1,093
|
|
5.5
|
|
6.1
|
|
(5.1)
|
|
6.0
|
|
(2.1)
|
Established
Pharmaceuticals
|
--
|
|
897
|
|
897
|
|
n/a
|
|
43.0
|
|
31.8
|
|
43.0
|
|
31.8
|
Medical
Devices
|
|
485
|
|
741
|
|
1,226
|
|
3.6
|
|
(0.4)
|
|
(12.2)
|
|
1.0
|
|
(6.6)
|
|
Note: Operational
growth reflects percentage change over the prior year excluding the
impact of exchange rates.
|
* Total Abbott Sales
from continuing operations include Other Sales of $12
million.
|
n/a = Not
Applicable.
|
First-quarter 2015 worldwide sales of $4.9 billion increased 10.0 percent on an
operational basis, including the impact of 2014 acquisitions,
driven by strong performance in Established Pharmaceuticals,
Nutrition and Diagnostics. Sales increased 3.0 percent on a
reported basis, including an unfavorable 7.0 percent effect of
foreign exchange.
International sales increased 13.6 percent on an operational
basis and 3.5 percent on a reported basis in the first quarter.
Emerging market sales increased 20.6 percent on an operational
basis and 13.0 percent on a reported basis in the first quarter,
including the impact of 2014 acquisitions.
Nutrition
($ in
millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q14
|
|
|
Sales
1Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
685
|
|
984
|
|
1,669
|
|
(0.6)
|
|
11.4
|
|
4.5
|
|
6.3
|
|
2.3
|
Pediatric
|
|
385
|
|
577
|
|
962
|
|
4.5
|
|
11.7
|
|
6.0
|
|
8.8
|
|
5.4
|
Adult
|
|
300
|
|
407
|
|
707
|
|
(6.5)
|
|
10.8
|
|
2.4
|
|
3.1
|
|
(1.6)
|
Worldwide Nutrition sales increased 6.3 percent in the first
quarter on an operational basis and 2.3 percent on a reported
basis, including an unfavorable 4.0 percent effect of foreign
exchange. Abbott Nutrition continues to increase its local presence
in key markets. In addition to the three nutrition manufacturing
plants Abbott opened in 2014 in China, India
and the U.S., Abbott opened a new nutrition pilot plant in
Singapore during the first quarter
of 2015 to serve as a second global R&D hub. This
state-of-the-art facility will allow Abbott to more rapidly pair
nutrition science innovation with local consumer preferences.
Worldwide Pediatric Nutrition sales increased 8.8 percent on an
operational basis and 5.4 percent on a reported basis in the
quarter, including an unfavorable 3.4 percent effect of foreign
exchange. Sales growth in the quarter was led by strong
international performance, including double-digit growth in
China and Latin America on an operational basis.
Worldwide Adult Nutrition sales increased 3.1 percent on an
operational basis and decreased 1.6 percent on a reported basis in
the quarter, including an unfavorable 4.7 percent effect of foreign
exchange. Sales growth was led by international performance,
including strong double-digit growth in Latin America on an operational basis. Abbott
recently launched its Ensure brand in China in the retail segment, which represents
a significant growth opportunity. U.S. Adult Nutrition sales were
impacted by competitive and market dynamics. Abbott expects an
improvement in U.S. Adult Nutrition sales growth over the rest of
the year as it launches new products.
Diagnostics
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q14
|
|
|
Sales
1Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
327
|
|
766
|
|
1,093
|
|
5.5
|
|
6.1
|
|
(5.1)
|
|
6.0
|
|
(2.1)
|
Core
Laboratory
|
|
185
|
|
681
|
|
866
|
|
1.8
|
|
5.4
|
|
(5.8)
|
|
4.7
|
|
(4.3)
|
Molecular
|
|
48
|
|
63
|
|
111
|
|
3.4
|
|
10.2
|
|
(1.8)
|
|
7.4
|
|
0.4
|
Point of
Care
|
|
94
|
|
22
|
|
116
|
|
14.7
|
|
18.3
|
|
11.3
|
|
15.5
|
|
14.1
|
Worldwide Diagnostics sales increased 6.0 percent in the first
quarter on an operational basis and decreased 2.1 percent on a
reported basis, including an unfavorable 8.1 percent effect of
foreign exchange. This business continues to deliver durable growth
across emerging and developed markets, while also investing in the
development of several next-generation diagnostic platforms across
all of its business units.
Core Laboratory Diagnostics sales increased 4.7 percent in the
quarter on an operational basis and decreased 4.3 percent on a
reported basis, including an unfavorable 9.0 percent effect of
foreign exchange. Sales growth in the quarter was driven by
double-digit growth in emerging markets and strong global growth in
the Core Laboratory segment from continued market-share gains
driven by the success of Abbott's customer-focused solutions that
help manage large testing volumes and increase operational
efficiencies. U.S. sales growth was impacted by a comparison to
first quarter 2014 when sales increased double digits driven by
higher blood screening sales.
Molecular Diagnostics sales increased 7.4 percent in the quarter
on an operational basis driven by double-digit operational growth
in the infectious disease business, which represents approximately
55 percent of the Molecular Diagnostics sales. Sales increased 0.4
percent on a reported basis, including an unfavorable 7.0 percent
effect of foreign exchange.
Point of Care Diagnostics sales increased 15.5 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 14.1 percent on a reported basis,
including an unfavorable 1.4 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 chart represent continuing operations.
|
|
|
|
|
|
|
|
% Change vs.
1Q14
|
|
|
Sales
1Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
--
|
|
897
|
|
897
|
|
n/a
|
|
43.0
|
|
31.8
|
|
43.0
|
|
31.8
|
Key Emerging
Markets
|
|
--
|
|
653
|
|
653
|
|
n/a
|
|
44.8
|
|
31.8
|
|
44.8
|
|
31.8
|
Other
|
|
--
|
|
244
|
|
244
|
|
n/a
|
|
38.0
|
|
31.6
|
|
38.0
|
|
31.6
|
Established Pharmaceuticals sales increased 43.0 percent in the
first quarter on an operational basis and 31.8 percent on a
reported basis, including an unfavorable 11.2 percent effect of
foreign exchange. During the quarter, Abbott completed the sale of
its developed markets branded generics pharmaceuticals business to
Mylan. The Established Pharmaceuticals business is now focused
entirely on emerging markets.
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 44.8 percent on an
operational basis and 31.8 percent on a reported basis, including
an unfavorable 13.0 percent effect of foreign exchange. Excluding
the impact of recent acquisitions, sales in Key Emerging Markets
increased low double digits on an operational basis.
Medical Devices
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q14
|
|
|
Sales
1Q15
|
|
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Operational
|
|
Reported
|
|
Operational
|
|
Reported
|
Total
|
|
485
|
|
741
|
|
1,226
|
|
3.6
|
|
(0.4)
|
|
(12.2)
|
|
1.0
|
|
(6.6)
|
Vascular
|
|
283
|
|
415
|
|
698
|
|
6.7
|
|
(0.5)
|
|
(12.2)
|
|
2.1
|
|
(5.4)
|
Diabetes
Care
|
|
102
|
|
165
|
|
267
|
|
4.9
|
|
1.7
|
|
(11.0)
|
|
2.8
|
|
(5.6)
|
Medical
Optics
|
|
100
|
|
161
|
|
261
|
|
(5.3)
|
|
(2.2)
|
|
(13.4)
|
|
(3.4)
|
|
(10.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DES/BVSa)
|
|
109
|
|
223
|
|
332
|
|
(2.2)
|
|
(3.1)
|
|
(13.4)
|
|
(2.8)
|
|
(10.0)
|
Other Coronary
Productsb)
|
49
|
|
84
|
|
133
|
|
1.4
|
|
(1.4)
|
|
(13.1)
|
|
(0.5)
|
|
(8.3)
|
Endovascularc)
|
|
67
|
|
58
|
|
125
|
|
13.0
|
|
6.8
|
|
(6.4)
|
|
9.8
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a)Includes
drug-eluting stents and bioresorbable vascular scaffold (BVS)
product portfolio.
|
b)Includes
guide wires, balloon catheters and other coronary
products.
|
c)Includes
vessel closure, carotid stents and other peripheral
products.
|
Worldwide Medical Devices sales increased 1.0 percent in the
first quarter on an operational basis and decreased 6.6 percent on
a reported basis, including an unfavorable 7.6 percent effect of
foreign exchange.
Worldwide sales of Vascular products increased 2.1 percent in
the quarter on an operational basis and decreased 5.4 percent on a
reported basis, including an unfavorable 7.5 percent effect of
foreign exchange. Sales of Endovascular products increased high
single digits on an operational basis and sales of Abbott's
MitraClip® structural heart product for the treatment of
mitral regurgitation increased double digits globally on an
operational basis in the quarter. In March at the American College
of Cardiology meeting, Abbott presented late-breaking data from the
initial commercial use of MitraClip in the U.S. that demonstrated a
clinically meaningful reduction in the severity of mitral
regurgitation and improvement in the overall health of patients who
are not good candidates for surgery. In Japan, Abbott recently launched its new
drug-eluting stent system XIENCE Alpine, which is designed for peak
performance in complex interventions.
Worldwide Diabetes Care sales increased 2.8 percent in the
quarter on an operational basis and decreased 5.6 percent on a
reported basis, including an unfavorable 8.4 percent effect of
foreign exchange. Abbott continues the expansion of its
revolutionary new glucose sensing technology FreeStyle Libre Flash
Glucose Monitoring System into new geographies and recently
received approval in India for its
FreeStyle Libre Pro Flash Glucose Monitoring System. The FreeStyle
Libre Pro is a first-of-its-kind device for professional use that
incorporates the same sensor-based technology as FreeStyle Libre
and has the potential to change how healthcare providers monitor
patients, particularly in geographies where self-monitoring of
blood glucose is not a common practice. In the U.S., Abbott
launched FreeStyle Precision Neo, a new slim-designed blood glucose
meter, available over-the-counter at major U.S. retailers, offering
people with diabetes the opportunity to easily access a well-known
brand.
Worldwide Medical Optics sales decreased 3.4 percent in the
quarter on an operational basis and 10.5 percent on a reported
basis, including an unfavorable 7.1 percent effect of foreign
exchange. Sales growth in the quarter was impacted by competitive
and market dynamics in the cataract and refractive businesses.
Abbott expects improved sales growth over the rest of the year as
it launches new products, including the TECNIS Multifocal Low Add
and TECNIS Preloaded IOLs recently launched in the U.S.
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 continues to forecast net specified items related to
continuing operations for the full year 2015 of approximately
$0.77 per share. Specified items
include intangible amortization expense, charges associated with
cost reduction initiatives, and expenses related to
acquisitions.
Including net specified items, projected earnings per share from
continuing operations under U.S. Generally Accepted Accounting
Principles (GAAP) would be $1.33 to
$1.43 for the full year 2015.
ABBOTT DECLARES 365TH CONSECUTIVE QUARTERLY
DIVIDEND
On Feb. 20, 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 May 15, 2015,
to shareholders of record at the close of business on April 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 first-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
|
First Quarter Ended
March 31, 2015 and 2014
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
1Q15
|
|
1Q14
|
|
%
Change
|
|
Net Sales
|
|
$4,897
|
|
$4,755
|
|
3.0
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
2,081
|
|
2,274
|
|
(8.5)
|
|
Amortization of
intangible assets
|
|
156
|
|
127
|
|
23.1
|
|
Research and
development
|
|
313
|
|
369
|
|
(15.0)
|
|
Selling, general, and
administrative
|
|
1,737
|
|
1,620
|
|
7.2
|
|
Total Operating Cost
and Expenses
|
|
4,287
|
|
4,390
|
|
(2.4)
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
610
|
|
365
|
|
67.3
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
16
|
|
20
|
|
(21.0)
|
|
Net foreign exchange
(gain) loss
|
|
(54)
|
|
1
|
|
n/m
|
|
Other (income)
expense, net
|
|
(5)
|
|
3
|
|
n/m
|
|
Earnings from
Continuing Operations before taxes
|
|
653
|
|
341
|
|
91.3
|
|
|
|
|
|
|
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
124
|
|
117
|
|
5.9
|
|
Earnings from
Continuing Operations
|
|
529
|
|
224
|
|
135.9
|
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
|
26
|
|
151
|
|
(82.6)
|
|
Gain on Sale of
Discontinued Operations, net of taxes
|
|
1,737
|
|
--
|
|
n/m
|
|
Net Earnings from
Discontinued Operations, net of taxes
|
|
1,763
|
|
151
|
|
n/m
|
1)
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$2,292
|
|
$375
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Net Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$719
|
|
$535
|
|
34.3
|
2)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$0.35
|
|
$0.14
|
|
150.0
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
1.16
|
|
0.10
|
|
n/m
|
1)
|
|
|
|
|
|
|
|
|
Total
|
|
$1.51
|
|
$0.24
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$0.47
|
|
$0.34
|
|
38.2
|
2)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,516
|
|
1,548
|
|
|
|
|
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 Earnings and
Diluted Earnings per Common Share from Discontinued Operations
reflect the after-tax gain of $1.737 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.
|
|
|
2)
|
2015 Net Earnings
from Continuing Operations, excluding Specified Items, excludes
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.
|
|
|
|
2014 Net Earnings
from Continuing Operations, excluding Specified Items, excludes net
after-tax charges of $311 million, or $0.20 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
|
First Quarter Ended
March 31, 2015 and 2014
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
1Q15
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$156
|
|
($156)
|
|
--
|
|
|
Gross
Margin
|
|
2,660
|
|
186
|
|
$2,846
|
|
58.1%
|
R&D
|
|
313
|
|
(1)
|
|
312
|
|
6.4%
|
SG&A
|
|
1,737
|
|
(42)
|
|
1,695
|
|
34.6%
|
Other (Income)
Expense, Net
|
|
(5)
|
|
(5)
|
|
(10)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
653
|
|
234
|
|
887
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
124
|
|
44
|
|
168
|
|
|
Net Earnings from
Continuing Operations
|
|
529
|
|
190
|
|
719
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.35
|
|
$0.12
|
|
$0.47
|
|
|
Specified items reflect intangible amortization expense of
$156 million and other expenses of
$78 million, primarily associated
with cost reduction initiatives and acquisitions.
|
|
1Q14
|
|
|
Historical
GAAP Adj for
Disc Ops 1)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$127
|
|
($127)
|
|
--
|
|
|
Gross
Margin
|
|
2,354
|
|
182
|
|
$2,536
|
|
53.3%
|
R&D
|
|
369
|
|
(50)
|
|
319
|
|
6.7%
|
SG&A
|
|
1,620
|
|
(85)
|
|
1,535
|
|
32.3%
|
Other (Income)
Expense, Net
|
|
3
|
|
(2)
|
|
1
|
|
|
Earnings from
Continuing Operations before taxes
|
|
341
|
|
319
|
|
660
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
117
|
|
8
|
|
125
|
|
|
Net Earnings from
Continuing Operations
|
|
224
|
|
311
|
|
535
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.14
|
|
$0.20
|
|
$0.34
|
|
|
|
|
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
$127 million and other expenses,
primarily associated with cost reduction initiatives of
$192 million, as well as tax expense
of $52 million associated with a
one-time repatriation of 2014 ex-U.S. earnings.
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
A reconciliation of the first-quarter tax rates for continuing
operations for 2015 and 2014 is shown below:
|
|
|
1Q15
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$653
|
|
$124
|
|
19.0%
|
|
Specified
items
|
|
234
|
|
44
|
|
|
|
Excluding
specified items
|
|
$887
|
|
$168
|
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q14
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$341
|
|
$117
|
|
34.3%
|
1)
|
Specified
items
|
|
319
|
|
8
|
|
|
|
Excluding
specified items
|
|
$660
|
|
$125
|
|
19.0%
|
|
|
|
1)
|
Reported tax rate on
a GAAP basis includes the impact of tax expense of $52 million
associated with a one-time repatriation of 2014 ex-U.S.
earnings.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/abbott-reports-first-quarter-2015-results-300070108.html
SOURCE Abbott