TIDMABT
RNS Number : 3264N
Abbott Laboratories
28 January 2016
Abbott Reports Fourth-Quarter 2015 Results
- FOURTH-QUARTER ADJUSTED EPS FROM CONTINUING OPERATIONS OF
$0.62; GAAP EPS FROM CONTINUING OPERATIONS OF $0.46
- FULL-YEAR OPERATIONAL SALES GROWTH OF 9.1 PERCENT, INCLUDING
17.1 PERCENT GROWTH IN EMERGING MARKETS; FULL-YEAR REPORTED SALES
GROWTH OF 0.8 PERCENT
- FULL-YEAR ADJUSTED EPS GROWTH FROM CONTINUING OPERATIONS OF
8.6 PERCENT AND GAAP EPS GROWTH FROM CONTINUING OPERATIONS OF 53.6
PERCENT
- SIGNIFICANT EXPANSION OF FULL-YEAR GROSS AND OPERATING MARGIN
RATIOS
- ISSUES EARNINGS OUTLOOK FOR 2016, REFLECTING DOUBLE-DIGIT
UNDERLYING GROWTH OFFSET BY FOREIGN EXCHANGE AND A SIGNIFICANTLY
LOWER CONTRIBUTION FROM VENEZUELAN OPERATIONS
ABBOTT PARK, Ill., Jan. 28, 2016 /PRNewswire/ -- Abbott (NYSE:
ABT) today announced financial results for the fourth quarter ended
Dec. 31, 2015.
-- Adjusted diluted EPS from continuing operations, which
excludes specified items, was $0.62 in the fourth quarter and $2.15
for the full year, at the midpoint of Abbott's previous guidance
range and reflecting 8.6 percent growth for the full year. Reported
diluted EPS from continuing operations under GAAP was $0.46 in the
fourth quarter and $1.72 for the full year.
-- Fourth-quarter worldwide sales of $5.2 billion increased 4.9
percent on an operational basis and decreased 3.1 percent on a
reported basis.
-- Full-year sales increased 9.1 percent on an operational basis
and 0.8 percent on a reported basis. Full-year sales in emerging
markets increased double digits excluding the impact of 2014
acquisitions and foreign exchange.
-- For the full year 2015, Abbott expanded its adjusted gross
and operating margin ratios by 260 and 90 basis points over the
prior year, respectively. The gross and operating margin ratios
under GAAP improved by 250 and 120 basis points over the prior
year, respectively.
-- Abbott issues full-year 2016 adjusted EPS guidance range of
$2.10 to $2.20. Projected full-year 2016 EPS under GAAP is $1.55 to
$1.65. Abbott's 2016 forecast assumes a significantly lower
contribution from Venezuelan operations as a result of challenging
market conditions in that country. Excluding the impact of foreign
exchange and Venezuela, the midpoint of Abbott's 2016 adjusted EPS
guidance range would reflect strong double-digit growth.
"In 2015, we achieved top-tier sales and earnings growth despite
a challenging currency environment," said Miles D. White, chairman
and chief executive officer, Abbott. "Our underlying performance
continues to be strong."
FOURTH-QUARTER BUSINESS OVERVIEW
Note: Prior year financial results have been adjusted to exclude
the sales from Abbott's developed markets branded generics
pharmaceuticals and animal health businesses that were sold to
Mylan and Zoetis, respectively, in the first quarter 2015.
Therefore, sales and growth rates shown in the following charts
represent continuing operations.
Following are sales by business segment and commentary for the
fourth quarter and the full year:
Total Company
($ in millions)
% Change vs. 4Q14
-----------------------------------------------------------------
Sales 4Q15 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Operational Reported Operational Reported
------- ------- ------- ------- ------------- ---------- ------------- ----------
Total * 1,603 3,585 5,188 3.2 5.6 (5.7) 4.9 (3.1)
------- ------- ------- ------- ------------- ---------- ------------- ----------
Nutrition 725 1,075 1,800 5.5 5.4 (3.7) 5.5 (0.2)
Diagnostics 367 853 1,220 5.1 7.7 (3.6) 7.0 (1.1)
Established
Pharmaceuticals -- 885 885 n/a 10.9 (4.0) 10.9 (4.0)
Medical Devices 503 794 1,297 (0.7) 1.5 (9.0) 0.7 (5.9)
* Total Abbott Sales from continuing operations include adjustments in Other
Sales of $14
million.
% Change vs. 12M14
------------------------------------------------------------
Sales 12M15 Int'l Total
--------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Operational Reported Operational Reported
------- -------- -------- ------ ------------- ---------- ------------- ----------
Total * 6,271 14,134 20,405 2.2 12.1 0.2 9.1 0.8
------- -------- -------- ------ ------------- ---------- ------------- ----------
Nutrition 2,868 4,107 6,975 1.2 8.5 (0.3) 5.5 0.3
Diagnostics 1,392 3,254 4,646 6.2 7.8 (4.6) 7.3 (1.6)
Established
Pharmaceuticals -- 3,720 3,720 n/a 34.1 19.3 34.1 19.3
Medical Devices 1,982 3,060 5,042 1.2 1.7 (10.9) 1.5 (6.5)
* 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.
Fourth-quarter 2015 worldwide sales of $5.2 billion increased
4.9 percent on an operational basis and decreased 3.1 percent on a
reported basis, including an unfavorable 8.0 percent effect of
foreign exchange.
International sales increased 5.6 percent on an operational
basis and decreased 5.7 percent on a reported basis in the fourth
quarter.
Full-year 2015 worldwide sales of $20.4 billion increased 9.1
percent on an operational basis and 0.8 percent on a reported
basis, including an unfavorable 8.3 percent effect of foreign
exchange. Full-year sales in emerging markets increased double
digits excluding the impact of 2014 acquisitions and foreign
exchange, driven by double-digit growth in Established
Pharmaceuticals, Diagnostics and Nutrition.
Nutrition
($ in millions)
% Change vs. 4Q14
------------------------------------------------------------
Sales 4Q15 Int'l Total
------------------------ ------------------------- -------------------------
U.S. Int'l Total U.S. Operational Reported Operational Reported
------ ------- ------- ------ ------------- ---------- ------------- ----------
Total 725 1,075 1,800 5.5 5.4 (3.7) 5.5 (0.2)
------ ------- ------- ------ ------------- ---------- ------------- ----------
Pediatric 409 625 1,034 6.0 2.3 (5.6) 3.7 (1.3)
Adult 316 450 766 4.8 9.9 (1.1) 7.9 1.3
% Change vs. 12M14
-------------------------------------------------------------
Sales 12M15 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Operational Reported Operational Reported
------- ------- ------- ------- ------------- ---------- ------------- ----------
Total 2,868 4,107 6,975 1.2 8.5 (0.3) 5.5 0.3
------- ------- ------- ------- ------------- ---------- ------------- ----------
Pediatric 1,592 2,378 3,970 3.9 8.1 0.7 6.4 2.0
Adult 1,276 1,729 3,005 (2.1) 9.1 (1.5) 4.3 (1.8)
Worldwide Nutrition sales increased 5.5 percent in the fourth
quarter on an operational basis and decreased 0.2 percent on a
reported basis, including an unfavorable 5.7 percent effect of
foreign exchange.
Worldwide Pediatric Nutrition sales increased 3.7 percent on an
operational basis and decreased 1.3 percent on a reported basis in
the quarter, including an unfavorable 5.0 percent effect of foreign
exchange. In the U.S., sales growth in the quarter was led by
continued consumer uptake of several recently launched non-GMO
products. International growth was led by share expansion of
Eleva(TM) in the premium segment of the Chinese market and
double-digit operational growth across several Latin American
countries, partially offset by a difficult comparison to the fourth
quarter 2014, when sales increased strong double digits.
January 28, 2016 07:48 ET (12:48 GMT)
------- ------- ------- ------- ------------- ---------- ------------- ----------
Vascular 1,145 1,647 2,792 2.6 0.6 (11.9) 1.3 (6.5)
Diabetes Care 394 723 1,117 (2.7) 5.8 (7.9) 2.9 (6.1)
Medical Optics 443 690 1,133 1.3 0.2 (11.5) 0.6 (6.9)
Vascular Product
Lines:
Coronary
Devices(a) 768 1,408 2,176 4.7 (0.3) (12.5) 1.3 (7.1)
Endovascular(b) 282 238 520 5.7 5.5 (8.3) 5.6 (1.2)
(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 0.7 percent in the
fourth quarter on an operational basis and decreased 5.9 percent on
a reported basis, including an unfavorable 6.6 percent effect of
foreign exchange.
Worldwide sales of Vascular products decreased 0.5 percent in
the quarter on an operational basis and 7.0 percent on a reported
basis, including an unfavorable 6.5 percent effect of foreign
exchange. Sales of Abbott's MitraClip(R) device for the treatment
of mitral regurgitation increased double digits globally, as Abbott
continues to build the market for this first-in-class device. In
October, at the Transcatheter Cardiovascular Therapeutics
conference, Abbott presented trial results for Absorb(TM) , its
first-of-its-kind fully dissolving stent, showing comparable
outcomes to XIENCE(TM) , its highly successful drug-eluting stent.
In 2015, Abbott completed submissions for regulatory approval of
Absorb in Japan and the U.S.
Worldwide Diabetes Care sales increased 2.4 percent in the
quarter on an operational basis and decreased 5.2 percent on a
reported basis, including an unfavorable 7.6 percent effect of
foreign exchange. Internationally, operational sales growth was
driven by continued uptake of Abbott's FreeStyle(R) Libre Flash
Glucose Monitoring System. Abbott recently completed a significant
expansion of its manufacturing capacity for FreeStyle Libre to meet
strong customer demand.
Worldwide Medical Optics sales increased 1.9 percent in the
quarter on an operational basis and decreased 4.1 percent on a
reported basis, including an unfavorable 6.0 percent effect of
foreign exchange. Operational sales growth was driven by uptake of
new cataract products in the premium intraocular lens segment. This
growth was partially offset by market dynamics in the refractive
business.
ABBOTT ISSUES EARNINGS-PER-SHARE OUTLOOK FOR 2016
Abbott is issuing full-year 2016 guidance for earnings per
share, excluding specified items, of $2.10 to $2.20. Abbott's 2016
forecast assumes a significantly lower contribution from Venezuelan
operations as a result of challenging market conditions in that
country. Excluding the impact of foreign exchange and Venezuela,
the midpoint of Abbott's 2016 adjusted EPS guidance range would
reflect strong double-digit growth.
Abbott forecasts net specified items for the full year 2016 of
approximately $0.55 per share. Specified items include intangible
amortization expense, charges associated with cost reduction
initiatives and deal and other expenses.
Including net specified items, projected earnings per share
under Generally Accepted Accounting Principles (GAAP) would be
$1.55 to $1.65 for the full year 2016.
Abbott is issuing first-quarter 2016 guidance for earnings per
share, excluding specified items, of $0.38 to $0.40. Abbott
forecasts specified items for the first quarter 2016 of $0.15
related to the same items discussed above for the full year 2016.
Including specified items, projected earnings per share under GAAP
would be $0.23 to $0.25 for the first quarter.
ABBOTT ANNOUNCES INCREASE IN QUARTERLY DIVIDEND
On Dec. 11, 2015, the board of directors of Abbott increased the
company's quarterly dividend to $0.26 per share from $0.24 per
share. Abbott's cash dividend is payable Feb. 16, 2016, to
shareholders of record at the close of business on Jan. 15, 2016.
This marks the 368(th) consecutive quarterly dividend paid by
Abbott.
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 74,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at
@AbbottNews.
Abbott will webcast its live fourth-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
Fourth Quarter Ended December 31, 2015 and 2014
(in millions, except per share data)
(unaudited)
4Q15 4Q14 % Change
----------------------- ----------------------- -----------------------
Net Sales $5,188 $5,356 (3.1)
Cost of products sold,
excluding
amortization expense 2,206 2,337 (5.6)
Amortization of
intangible assets 143 163 (12.7)
Research and
development 369 361 2.4
Selling, general, and
administrative 1,655 1,666 (0.6)
Total Operating Cost
and Expenses 4,373 4,527 (3.4)
----------------------- -----------------------
Operating earnings 815 829 (1.7)
Interest expense, net 9 19 (54.7)
Net loss on
extinguishment of debt -- 18 n/m
Net foreign exchange
(gain) loss (30) (24) 21.6
Other (income)
expense, net 6 12 (55.0)
----------------------- -----------------------
Earnings from
Continuing Operations
before taxes 830 804 3.4
Taxes on Earnings from
Continuing Operations 135 170 (20.6)
Earnings from
Continuing Operations 695 634 9.8
Earnings from
Discontinued
Operations, net of
taxes 72 271 (73.5) 1)
Gain on Sale of
Discontinued
Operations, net of
taxes -- -- n/m
----------------------- -----------------------
Net Earnings from
Discontinued
Operations, net of
taxes 72 271 (73.5) 1)
----------------------- -----------------------
Net Earnings $767 $905 (15.2)
======================= =======================
Net Earnings from
Continuing Operations,
excluding
Specified Items, as
described below $932 $943 (1.2) 2)
======================= =======================
Diluted Earnings per
Common Share from:
Continuing Operations $0.46 $0.41 12.2
Discontinued
Operations 0.05 0.18 (72.2) 1)
----------------------- -----------------------
Total $0.51 $0.59 (13.6)
January 28, 2016 07:48 ET (12:48 GMT)
======================= =======================
Diluted Earnings per
Common Share from
Continuing
Operations, excluding
Specified Items, as
described below $0.62 $0.62 -- 2)
======================= =======================
Average Number of
Common Shares
Outstanding Plus
Dilutive Common Stock
Options 1,498 1,522
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
primarily
reflect net favorable adjustments to tax expense as a result of the resolution of
various
tax positions from previous years related to discontinued 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 a net favorable adjustment 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 $237 million, or $0.16 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 $309 million, or $0.21 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,
partially offset by favorability as a result of the resolution of various tax
positions and
adjustment of tax uncertainties from prior years.
Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Fiscal Year Ended December 31, 2015 and 2014
(in millions, except per share data)
(unaudited)
12M15 12M14 % Change
---------------------- ---------------------- ----------------------
Net Sales $20,405 $20,247 0.8
Cost of products
sold, excluding
amortization
expense 8,747 9,218 (5.1)
Amortization of
intangible assets 601 555 8.2
Research and
development 1,405 1,345 4.5
Selling, general,
and administrative 6,785 6,530 3.9
Total Operating Cost
and Expenses 17,538 17,648 (0.6)
---------------------- ----------------------
Operating earnings 2,867 2,599 10.3
Interest expense,
net 58 73 (21.2)
Net loss on
extinguishment of
debt -- 18 n/m
Net foreign exchange
(gain) loss (93) (24) n/m
Other (income)
expense, net (281) 14 n/m 1)
----------------------
Earnings from
Continuing
Operations before
taxes 3,183 2,518 26.4
Taxes on Earnings
from Continuing
Operations 577 797 (27.6)
Earnings from
Continuing
Operations 2,606 1,721 51.4
Earnings from
Discontinued
Operations, net of
taxes 65 563 (88.5)
Gain on Sale of
Discontinued
Operations, net of
taxes 1,752 -- n/m
---------------------- ----------------------
Net Earnings from
Discontinued
Operations, net of
taxes 1,817 563 n/m 2)
---------------------- ----------------------
Net Earnings $4,423 $2,284 93.6
====================== ======================
Net Earnings from
Continuing
Operations,
excluding
Specified Items, as
described below $3,258 $3,038 7.2 3)
====================== ======================
Diluted Earnings per
Common Share from:
Continuing
Operations $1.72 $1.12 53.6
Discontinued
Operations 1.20 0.37 n/m 2)
---------------------- ----------------------
Total $2.92 $1.49 96.0
====================== ======================
Diluted Earnings per
Common Share from
Continuing
Operations,
excluding Specified
Items, as
described below $2.15 $1.98 8.6 3)
====================== ======================
Average Number of
Common Shares
Outstanding Plus
Dilutive Common
Stock Options 1,506 1,527
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 a net favorable adjustment 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 $652 million, or $0.43 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
January 28, 2016 07:48 ET (12:48 GMT)
charges of $1.317 billion, or $0.86 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,
partially offset by favorability as a result of the resolution of various tax positions
and
adjustment of tax uncertainties from prior years.
NON-GAAP RECONCILIATION OF FINANCIAL INFORMATION FROM CONTINUING OPERATIONS
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information From Continuing Operations
Fourth Quarter Ended December 31, 2015 and 2014
(in millions, except per share data)
(unaudited)
4Q15
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $143 ($143) --
Gross Margin 2,839 178 $3,017 58.2%
R&D 369 (4) 365 7.0%
SG&A 1,655 (117) 1,538 29.6%
Other (Income) Expense, Net 6 (6) --
Earnings from Continuing Operations before taxes 830 305 1,135
Taxes on Earnings from Continuing Operations 135 68 203
Net Earnings from Continuing Operations 695 237 932
Diluted Earnings per Share from Continuing Operations $0.46 $0.16 $0.62
Specified items reflect intangible amortization expense of $143
million and other expenses of $162 million, primarily associated
with cost reduction initiatives and acquisitions.
4Q14
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $163 ($163) --
Gross Margin 2,856 191 $3,047 56.9%
R&D 361 (19) 342 6.4%
SG&A 1,666 (86) 1,580 29.5%
Net loss on extinguishment of debt 18 (18) --
Other (Income) Expense, Net 12 (1) 11
Earnings from Continuing Operations before taxes 804 315 1,119
Taxes on Earnings from Continuing Operations 170 6 176
Net Earnings from Continuing Operations 634 309 943
Diluted Earnings per Share from Continuing Operations $0.41 $0.21 $0.62
Specified items reflect intangible amortization expense of $163
million and other expenses of $152 million, primarily associated
with cost reduction initiatives and deal and other expenses related
to acquisitions, as well as tax expense of $175 million associated
with a one-time repatriation of 2014 ex-U.S. earnings, partially
offset by favorability as a result of the resolution of various tax
positions and adjustment of tax uncertainties from prior years.
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information From Continuing Operations
Fiscal Year Ended December 31, 2015 and 2014
(in millions, except per share data)
(unaudited)
12M15
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $601 ($601) --
Gross Margin 11,057 755 $11,812 57.9%
R&D 1,405 (85) 1,320 6.5%
SG&A 6,785 (272) 6,513 31.9%
Other (Income) Expense, Net (281) 288 7
Earnings from Continuing Operations before taxes 3,183 824 4,007
Taxes on Earnings from Continuing Operations 577 172 749
Net Earnings from Continuing Operations 2,606 652 3,258
Diluted Earnings per Share from Continuing Operations $1.72 $0.43 $2.15
Specified items reflect intangible amortization expense of $601
million and other expenses of $510 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.
12M14
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $555 ($555) --
Gross Margin 10,474 721 $11,195 55.3%
R&D 1,345 (72) 1,273 6.3%
SG&A 6,530 (367) 6,163 30.4%
Net loss on extinguishment of debt 18 (18) --
Other (Income) Expense, Net 14 (9) 5
Earnings from Continuing Operations before taxes 2,518 1,187 3,705
Taxes on Earnings from Continuing Operations 797 (130) 667
Net Earnings from Continuing Operations 1,721 1,317 3,038
Diluted Earnings per Share from Continuing Operations $1.12 $0.86 $1.98
Specified items reflect intangible amortization expense of $555
million and other expenses of $632 million, primarily associated
with cost reduction initiatives and deal and other expenses related
to acquisitions, as well as tax expense of $440 million associated
with a one-time repatriation of 2014 ex-U.S. earnings, partially
offset by favorability as a result of the resolution of various tax
positions and adjustment of tax uncertainties from prior years.
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
January 28, 2016 07:48 ET (12:48 GMT)
A reconciliation of the fourth-quarter tax rates for continuing
operations for 2015 and 2014 is shown below:
4Q15
-------------------------------------------------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
------------------------ ------------------------ ---------------------
As reported (GAAP) $830 $135 16.3%
Specified items 305 68
------------------------ ------------------------
Excluding specified
items $1,135 $203 17.9% 1)
4Q14
-------------------------------------------------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
------------------------ ------------------------ ---------------------
As reported (GAAP) $804 $170 21.1% 2)
Specified items 315 6
------------------------ ------------------------
Excluding specified
items $1,119 $176 15.7% 1)
1) Fourth-quarter 2014 and 2015 tax rates include the year-to-date impact of U.S. tax
legislation
passed in Dec. 2014 and 2015, respectively, including the R&D tax credit.
2) Reported tax rate on a GAAP basis includes the impact of tax expense of $175 million
associated
with a one-time repatriation of 2014 ex-U.S. earnings, partially offset by
favorability of
$133 million as a result of the resolution of various tax positions and adjustment of
tax
uncertainties from prior years.
A reconciliation of the full-year tax rates for continuing
operations for 2015 and 2014 is shown below:
12M15
-------------------------------------------------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
------------------------ ------------------------ ---------------------
As reported (GAAP) $3,183 $577 18.1%
Specified items 824 172
------------------------ ------------------------
Excluding specified
items $4,007 $749 18.7% 3)
12M14
-------------------------------------------------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
------------------------ ------------------------ ---------------------
As reported (GAAP) $2,518 $797 31.7% 4)
Specified items 1,187 (130)
------------------------ ------------------------
Excluding specified
items $3,705 $667 18.0% 3)
3) Full-year 2014 and 2015 tax rates include the impact of U.S. tax legislation passed
in Dec.
2014 and 2015, respectively, including the R&D tax credit.
4) Reported tax rate on a GAAP basis includes the impact of tax expense of $440 million
associated
with a one-time repatriation of 2014 ex-U.S. earnings, partially offset by
favorability of
$126 million as a result of the resolution of various tax positions and adjustment of
tax
uncertainties from prior years.
CONTACT: Abbott Financial: Scott Leinenweber, (224) 668-0791,
Michael Comilla, (224) 668-1872, Jeffrey Byrne, (224) 668-8808; or
Abbott Media: Scott Stoffel, (224) 668-5201, Elissa Maurer, (224)
668-3309
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DMGZMZRKGVZM
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January 28, 2016 07:48 ET (12:48 GMT)
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