TIDMABT
RNS Number : 8105V
Abbott Laboratories
20 April 2016
Abbott Reports First-Quarter 2016 Results
- FIRST-QUARTER OPERATIONAL SALES GROWTH OF 5.1 PERCENT;
FIRST-QUARTER REPORTED SALES DECLINE OF 0.2 PERCENT
- FIRST-QUARTER ADJUSTED EPS FROM CONTINUING OPERATIONS OF
$0.41, ABOVE PREVIOUS GUIDANCE RANGE; GAAP EPS FROM CONTINUING
OPERATIONS OF $0.04
- RAISES FULL-YEAR 2016 ADJUSTED EPS GUIDANCE RANGE FOR
CONTINUING OPERATIONS TO $2.14 TO $2.24; PROJECTED FULL-YEAR 2016
GAAP EPS FOR CONTINUING OPERATIONS OF $1.36 TO $1.46
- ALL FOUR BUSINESS SEGMENTS MET OR EXCEEDED OPERATIONAL SALES
GROWTH EXPECTATIONS
ABBOTT PARK, Ill., April 20, 2016 /PRNewswire/ -- Abbott (NYSE:
ABT) today announced financial results for the first quarter ended
March 31, 2016.
-- Adjusted diluted EPS from continuing operations, which
excludes specified items, was $0.41 in the first quarter, above
Abbott's previous guidance range. Reported diluted EPS from
continuing operations under GAAP was $0.04 in the first
quarter.
-- First-quarter worldwide sales of $4.9 billion increased 5.1
percent on an operational basis and decreased 0.2 percent on a
reported basis.
-- Abbott is raising its full-year 2016 adjusted EPS guidance
range for continuing operations to $2.14 to $2.24 from $2.10 to
$2.20. Projected full-year 2016 EPS for continuing operations under
GAAP is $1.36 to $1.46.
-- Abbott's recent innovations and product launches contributed
to sales growth in the first quarter. Select recently launched
products include Eleva(TM) in the premium segment of the Chinese
infant formula market; Abbott's portfolio of infant and toddler
non-GMO nutrition products in the U.S.; MitraClip(R) , Abbott's
structural heart product for the treatment of mitral regurgitation;
Freestyle(R) Libre in Europe; Supera(R) peripheral stent in the
U.S. for treatment of blockages in the superficial femoral artery;
and Abbott's portfolio of TECNIS(R) intraocular lenses for the
treatment of cataracts.
-- In the first quarter, Abbott received European approval for
use in children and teens of its revolutionary FreeStyle Libre
Flash Glucose Monitoring System that eliminates routine finger
sticks and finger-stick calibration. In Abbott Vascular, Absorb(TM)
, Abbott's fully dissolving vascular stent, earned a positive
review from an independent U.S. Food and Drug Administration
advisory committee.
"We're off to a good start to the year and are raising our
full-year adjusted EPS guidance range," said Miles D. White,
chairman and chief executive officer, Abbott. "All four of our
businesses met or exceeded our growth expectations and underlying
demand remains strong."
FIRST-QUARTER BUSINESS OVERVIEW
Following are sales by business segment and commentary for the
first quarter:
Total Company
($ in millions)
% Change vs. 1Q15
-------------------------------------------------------------
Sales 1Q16 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Operational Reported Operational Reported
------- ------- ------- ------- ------------- ---------- ------------- ----------
Total * 1,531 3,354 4,885 1.9 6.6 (1.2) 5.1 (0.2)
------- ------- ------- ------- ------------- ---------- ------------- ----------
Nutrition 719 952 1,671 4.9 3.9 (3.2) 4.3 0.1
Diagnostics 339 779 1,118 3.7 8.2 1.8 6.9 2.3
Established
Pharmaceuticals -- 888 888 n/a 11.0 (1.0) 11.0 (1.0)
Medical Devices 466 731 1,197 (3.9) 3.5 (1.3) 0.5 (2.4)
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 $11 million.
n/a = Not Applicable.
First-quarter 2016 worldwide sales of $4.9 billion increased 5.1
percent on an operational basis and decreased 0.2 percent on a
reported basis, including an unfavorable 5.3 percent effect of
foreign exchange.
U.S. sales increased 1.9 percent, led by 9.2 percent growth in
Point of Care Diagnostics, 7.5 percent growth in Medical Optics,
and 4.9 percent growth in Nutrition.
International sales increased 6.6 percent on an operational
basis and decreased 1.2 percent on a reported basis in the first
quarter. International operational sales growth was led by 11.0
percent growth in Established Pharmaceuticals, 11.0 percent growth
in Diabetes Care and 8.2 percent growth in Diagnostics.
Nutrition
($ in millions)
% Change vs. 1Q15
------------------------------------------------------------
Sales 1Q16 Int'l Total
------------------------ ------------------------- -------------------------
U.S. Int'l Total U.S. Operational Reported Operational Reported
------ ------- ------- ------ ------------- ---------- ------------- ----------
Total 719 952 1,671 4.9 3.9 (3.2) 4.3 0.1
------ ------- ------- ------ ------------- ---------- ------------- ----------
Pediatric 403 564 967 4.7 4.1 (2.3) 4.4 0.5
Adult 316 388 704 5.2 3.6 (4.6) 4.3 (0.5)
Worldwide Nutrition sales increased 4.3 percent in the first
quarter on an operational basis and 0.1 percent on a reported
basis, including an unfavorable 4.2 percent effect of foreign
exchange.
Worldwide Pediatric Nutrition sales increased 4.4 percent on an
operational basis and 0.5 percent on a reported basis in the
quarter, including an unfavorable 3.9 percent effect of foreign
exchange. In the U.S., above-market sales growth was led by
recently launched infant and toddler non-GMO products, including
Similac(R) Advance(R) Non-GMO and Go & Grow by Similac Non-GMO.
International growth was led by market share expansion of Eleva in
the premium segment of the Chinese infant formula market, as well
as continued strong performance in Russia and across several
countries in Latin America.
Worldwide Adult Nutrition sales increased 4.3 percent on an
operational basis and decreased 0.5 percent on a reported basis in
the quarter, including an unfavorable 4.8 percent effect of foreign
exchange. International Adult Nutrition growth was led by continued
strong growth of Ensure(R) and Glucerna(R) in Latin America and
other priority geographies. U.S. Adult Nutrition sales growth of
5.2 percent was led by growth of Ensure in the retail and
institutional market segments. During the quarter, Abbott launched
Ensure Enlive(R) , a nutrition drink that helps adults rebuild lost
muscle and regain strength and energy.
Diagnostics
($ in millions)
% Change vs. 1Q15
-------------------------------------------------------------
Sales 1Q16 Int'l Total
----------------------- ------------------------- -------------------------
U.S
. Int'l Total U.S. Operational Reported Operational Reported
----- ------- ------- ------- ------------- ---------- ------------- ----------
Total 339 779 1,118 3.7 8.2 1.8 6.9 2.3
----- ------- ------- ------- ------------- ---------- ------------- ----------
Core
Laboratory 190 695 885 2.4 8.6 2.1 7.3 2.1
Molecular 47 61 108 (2.1) 3.2 (3.4) 1.0 (2.8)
Point of
Care 102 23 125 9.2 9.6 7.2 9.3 8.8
Worldwide Diagnostics sales increased 6.9 percent in the first
quarter on an operational basis, driven by continued above-market
growth globally, including strong growth in both emerging and
developed markets. Sales increased 2.3 percent on a reported basis,
including an unfavorable 4.6 percent effect of foreign
exchange.
Core Laboratory Diagnostics sales increased 7.3 percent in the
quarter on an operational basis and 2.1 percent on a reported
basis, including an unfavorable 5.2 percent effect of foreign
exchange. Operational sales growth in the quarter was driven by
double-digit growth in emerging markets.
Molecular Diagnostics sales increased 1.0 percent in the quarter
on an operational basis and decreased 2.8 percent on a reported
basis, including an unfavorable 3.8 percent effect of foreign
exchange. Strong operational sales growth in Abbott's infectious
disease testing business was offset, as expected, by the planned
scale down of its genetics business.
Point of Care Diagnostics sales increased 9.3 percent in the
quarter on an operational basis and 8.8 percent on a reported
basis, including an unfavorable 0.5 percent effect of foreign
exchange. Sales growth was led by continued adoption of Abbott's
i-STAT(R) handheld system in the U.S. and international
markets.
Established Pharmaceuticals
(MORE TO FOLLOW) Dow Jones Newswires
April 20, 2016 08:27 ET (12:27 GMT)
($ in millions)
% Change vs. 1Q15
------------------------------------------------------------
Sales 1Q16 Int'l Total
-------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Operational Reported Operational Reported
------- ------- ------- ------ ------------- ---------- ------------- ----------
Total -- 888 888 n/a 11.0 (1.0) 11.0 (1.0)
-------- ------- ------- ------ ------------- ---------- ------------- ----------
Key
Emerging
Markets -- 634 634 n/a 11.9 (3.2) 11.9 (3.2)
Other -- 254 254 n/a 8.6 4.9 8.6 4.9
Established Pharmaceuticals sales increased 11.0 percent in the
first quarter on an operational basis and decreased 1.0 percent on
a reported basis, including an unfavorable 12.0 percent effect of
foreign exchange.
Key Emerging Markets include India, Russia, Brazil and China,
along with several additional emerging markets that represent the
most attractive long-term growth opportunities for Abbott's branded
generics product portfolio. Sales in these key geographies
increased 11.9 percent on an operational basis and decreased 3.2
percent on a reported basis, including an unfavorable 15.1 percent
effect of foreign exchange.
Operational sales growth in Key Emerging Markets was led by
continued double-digit growth in India, which comprises more than
20 percent of Abbott's Established Pharmaceuticals sales. Sales
growth in India was led by double-digit growth across several core
therapeutic areas, including women's health, gastroenterology, and
cardio-metabolics. During the quarter, Abbott also achieved
above-market growth in China and several countries in Latin America
as it continues to expand its presence and portfolio in these key
geographies.
Medical Devices
($ in millions)
% Change vs. 1Q15
--------------------------------------------------------------
Sales 1Q16 Int'l Total
----------------------- ------------------------- -------------------------
U.S
. Int'l Total U.S. Operational Reported Operational Reported
----- ------- ------- -------- ------------- ---------- ------------- ----------
Total 466 731 1,197 (3.9) 3.5 (1.3) 0.5 (2.4)
----- ------- ------- -------- ------------- ---------- ------------- ----------
Vascular 289 396 685 1.9 0.2 (4.5) 0.9 (1.9)
Diabetes Care 69 174 243 (31.6) 11.0 4.8 (5.2) (9.1)
Medical Optics 108 161 269 7.5 4.2 0.5 5.4 3.2
Vascular Product
Lines:
Coronary
Devices(a) 194 336 530 4.9 (1.1) (5.6) 0.9 (2.0)
Endovascular(b) 73 60 133 9.5 8.6 2.9 9.0 6.4
(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 0.5 percent in the
first quarter on an operational basis and decreased 2.4 percent on
a reported basis, including an unfavorable 2.9 percent effect of
foreign exchange.
Worldwide sales of Vascular products increased 0.9 percent in
the quarter on an operational basis and decreased 1.9 percent on a
reported basis, including an unfavorable 2.8 percent effect of
foreign exchange. Sales of MitraClip, Abbott's device for the
treatment of mitral regurgitation, increased double-digits
globally, as Abbott continues to build the market for this
first-in-class device. Growth in Abbott's Endovascular business was
driven by vessel closure products and Supera, Abbott's peripheral
stent for the treatment of blockages in the superficial femoral
artery and proximal popliteal artery in the upper leg. In March,
Absorb, Abbott's fully dissolving vascular stent, received a
positive review from an independent U.S. FDA advisory
committee.
Worldwide Diabetes Care sales decreased 5.2 percent in the
quarter on an operational basis and 9.1 percent on a reported
basis, including an unfavorable 3.9 percent effect of foreign
exchange. Strong international sales growth was driven by continued
consumer uptake of FreeStyle Libre, Abbott's revolutionary Flash
Glucose Monitoring System that eliminates routine finger sticks and
finger-stick calibration. During the quarter, Abbott received
European approval for use of FreeStyle Libre in children and teens.
In the U.S., sales were impacted by competitive and market
dynamics.
Worldwide Medical Optics sales increased 5.4 percent in the
quarter on an operational basis and 3.2 percent on a reported
basis, including an unfavorable 2.2 percent effect of foreign
exchange. Operational sales growth was driven by continued market
uptake of cataract products in the premium intraocular lens
segment, including TECNIS Symfony and TECNIS Toric lenses.
ABBOTT RAISES FULL-YEAR ADJUSTED EARNINGS-PER-SHARE GUIDANCE
RANGE
Abbott is raising its full-year 2016 guidance range for earnings
per share from continuing operations, excluding specified items, to
$2.14 to $2.24 from $2.10 to $2.20.
Abbott forecasts net specified items for the full year 2016 of
approximately $0.78 per share. Specified items include intangible
amortization expense, the impact of the Venezuelan currency
devaluation, and charges associated with cost reduction initiatives
and deal and other expenses, partially offset by the favorable
resolution of various tax positions from prior years.
Including net specified items, projected earnings per share from
continuing operations under Generally Accepted Accounting
Principles (GAAP) would be $1.36 to $1.46 for the full year
2016.
ABBOTT DECLARES 369(TH) QUARTERLY DIVIDEND
On Feb. 19, 2016, the board of directors of Abbott declared the
company's quarterly dividend of $0.26 per share. Abbott's cash
dividend is payable May 16, 2016, to shareholders of record at the
close of business on April 15, 2016. This marks the 369(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 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, 2015, 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
Condensed Consolidated Statement of Earnings
First Quarter Ended March 31, 2016 and 2015
(in millions, except per share data)
(unaudited)
%
1Q16 1Q15 Change
--------- -------- ---------
Net Sales $4,885 $4,897 (0.2)
Cost of products sold, excluding amortization expense 2,140 2,081 2.9
Amortization of intangible assets 144 156 (7.5)
Research and development 379 313 21.0
Selling, general, and administrative 1,698 1,737 (2.3)
Total Operating Cost and Expenses 4,361 4,287 1.7
--------- --------
Operating earnings 524 610 (14.1)
(MORE TO FOLLOW) Dow Jones Newswires
April 20, 2016 08:27 ET (12:27 GMT)
Interest expense, net 25 16 58.8
Net foreign exchange (gain) loss 478 (54) n/m 1)
Other (income) expense, net 19 (5) n/m
---------
Earnings from Continuing Operations before taxes 2 653 (99.7)
Tax (benefit) expense on Earnings from Continuing Operations (54) 124 n/m 2)
Earnings from Continuing Operations 56 529 (89.5) 3)
Earnings from Discontinued Operations, net of taxes 244 26 n/m
Gain on Sale of Discontinued Operations, net of taxes 16 1,737 (99.1)
--------- --------
Net Earnings from Discontinued Operations, net of taxes 260 1,763 (85.2) 4)
--------- --------
Net Earnings $316 $2,292 (86.2)
========= ========
Net Earnings from Continuing Operations, excluding
Specified Items, as described below $615 $719 (14.5)
========= ========
Diluted Earnings per Common Share from:
Continuing Operations $0.04 $0.35 (88.6)
Discontinued Operations 0.17 1.16 (85.3) 4)
Total $0.21 $1.51 (86.1)
========= ========
Diluted Earnings per Common Share from Continuing
Operations, excluding Specified Items, as described below $0.41 $0.47 (12.8) 3)
========= ========
Average Number of Common Shares Outstanding
Plus Dilutive Common Stock Options 1,484 1,516
NOTES:
See tables on page 11 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
1) 2016 Net foreign exchange loss includes a loss of $477 million related to the revaluation
of Abbott's net monetary assets in Venezuela using the Dicom exchange rate, which is the Venezuelan
government's official floating exchange rate.
2) 2016 Tax on Earnings from Continuing Operations includes the impact of a net tax benefit of
approximately $140 million as a result of the resolution of various tax positions from prior
years, partially offset by the unfavorable impact of non-deductible foreign exchange losses
related to Venezuela.
3) 2016 Net Earnings from Continuing Operations, excluding Specified Items, excludes net after-tax
charges of $559 million, or $0.37 per share, for intangible amortization expense, the foreign
exchange loss related to Venezuela, and other expenses primarily associated with cost reduction
initiatives and acquisitions, partially offset by the favorable impact of a net tax benefit
as a result of the resolution of various tax positions from prior years.
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.
4) 2016 Earnings and Diluted Earnings per Common Share from Discontinued Operations, net of taxes
reflect the impact of a net tax benefit of $247 million as a result of the resolution of various
tax positions from prior years.
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.
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, 2016 and 2015
(in millions, except per share data)
(unaudited)
1Q16
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $144 ($144) --
Gross Margin 2,601 172 $2,773 56.8%
R&D 379 (45) 334 6.8%
SG&A 1,698 (43) 1,655 33.9%
Interest expense, net 25 (12) 13
Net foreign exchange (gain) loss 478 (477) 1
Other (income) expense, net 19 (4) 15
Earnings from Continuing Operations before taxes 2 753 755
Taxes on Earnings from Continuing Operations (54) 194 140
Net Earnings from Continuing Operations 56 559 615
Diluted Earnings per Share from Continuing Operations $0.04 $0.37 $0.41
Specified items reflect intangible amortization expense of $144
million, the impact of the foreign exchange loss in Venezuela of
$477 million, and other expenses of $132 million, primarily
associated with cost reduction initiatives and acquisitions,
partially offset by a net tax benefit of approximately $140 million
as a result of the resolution of various tax positions from prior
years.
1Q15
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted 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 $78 million, primarily associated
with cost reduction initiatives and acquisitions.
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
(MORE TO FOLLOW) Dow Jones Newswires
April 20, 2016 08:27 ET (12:27 GMT)
A reconciliation of the first-quarter tax rates for continuing
operations for 2016 and 2015 is shown below:
1Q16
--------------------------------------------------------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
------------------------- ------------------------- --------------------------
As reported (GAAP) $2 (54) n/m
Specified items 753 194
------------------------- -------------------------
Excluding specified items $755 $140 18.6%
1Q15
--------------------------------------------------------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
------------------------- ------------------------- --------------------------
As reported (GAAP) $653 $124 19.0%
Specified items 234 44
------------------------- -------------------------
Excluding specified items $887 $168 19.0%
1) Reported tax rate on a GAAP basis for 2016 includes the impact of a net tax
benefit of approximately
$140 million as a result of the resolution of various tax positions from prior
years, partially
offset by the unfavorable impact of non-deductible foreign exchange losses
related to Venezuela.
CONTACT: Abbott Financial: Scott Leinenweber, (224) 668-0791,
Michael Comilla, (224) 668-1872, Jeffrey Byrne, (224) 668-8808,
Abbott Media: Darcy Ross, (224) 667-3655, Elissa Maurer, (224)
668-3309
This information is provided by RNS
The company news service from the London Stock Exchange
END
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