- Worldwide sales of $10.4
billion in the third quarter
- Raises full-year earnings-per-share guidance
- Continues to strengthen portfolio with new product approvals
and launches
ABBOTT
PARK, Ill., Oct. 19,
2022 /PRNewswire/ -- Abbott (NYSE: ABT) today
announced financial results for the third quarter ended
Sept. 30, 2022.
- Third-quarter sales of $10.4
billion decreased 4.7 percent on a reported basis and
increased 1.3 percent on an organic basis, which excludes the
impact of foreign exchange.
- GAAP diluted EPS1 was $0.81 in the third quarter. Excluding specified
items, adjusted diluted EPS was $1.15.
- Abbott is raising its full-year 2022 EPS guidance. Abbott
projects full-year diluted EPS on a GAAP basis of $3.75 to $3.81 and
projects adjusted diluted EPS of $5.17 to $5.23.
- Full-year 2022 guidance assumes COVID-19 testing-related sales
of $7.8 billion, which includes sales
of $7.3 billion through September 2022 and projected sales of
$0.5 billion in the fourth
quarter.
- U.S. Medical Devices sales grew 11.3 percent in the third
quarter, led by strong double-digit growth in Electrophysiology,
Structural Heart and Diabetes Care.
- In September, Abbott presented new data showing its FreeStyle
Libre® continuous glucose monitoring system helped
reduce acute diabetes-related events, leading to a 67 percent
decrease in hospitalizations in people with Type 2 diabetes on
once-daily (basal) insulin therapy.2
- During the quarter, Abbott launched its latest-generation
FreeStyle Libre 3 system in the U.S., which automatically delivers
up-to-the-minute glucose readings and unsurpassed 14-day
accuracy3 in the world's smallest and
thinnest3 wearable sensor.
- During the quarter, following a manufacturing stoppage earlier
this year, Abbott restarted production of Similac® as
well as EleCare® and metabolic infant formulas at its
Sturgis, Michigan, facility.
"Our results and increased guidance in the current macroeconomic
environment reflect the strength of our diversified business model
and execution," said Robert B. Ford,
chairman and chief executive officer, Abbott. "We're particularly
pleased with improving sales growth rates in U.S. Medical Devices,
which is being fueled by several recent product launches, as well
as continued strong performance in Established
Pharmaceuticals."
THIRD-QUARTER BUSINESS OVERVIEW
Note: Management
believes that measuring sales growth rates on an organic basis is
an appropriate way for investors to best understand the underlying
performance of the business. Organic sales growth excludes the
impact of foreign exchange.
Total
Company
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q21
|
|
|
Sales
3Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
4,094
|
|
6,316
|
|
10,410
|
|
(6.3)
|
|
(3.7)
|
|
(4.7)
|
|
(6.3)
|
|
6.3
|
|
1.3
|
Nutrition
|
|
686
|
|
1,109
|
|
1,795
|
|
(25.3)
|
|
(6.8)
|
|
(14.9)
|
|
(25.3)
|
|
1.2
|
|
(10.3)
|
Diagnostics
|
|
1,741
|
|
1,930
|
|
3,671
|
|
(10.6)
|
|
(1.8)
|
|
(6.2)
|
|
(10.6)
|
|
9.2
|
|
(0.6)
|
Established
Pharmaceuticals
|
|
—
|
|
1,326
|
|
1,326
|
|
n/a
|
|
4.9
|
|
4.9
|
|
n/a
|
|
12.2
|
|
12.2
|
Medical
Devices
|
|
1,664
|
|
1,951
|
|
3,615
|
|
11.3
|
|
(8.7)
|
|
(0.5)
|
|
11.3
|
|
3.1
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
9M21
|
|
|
Sales
9M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
13,923
|
|
19,639
|
|
33,562
|
|
18.1
|
|
(0.9)
|
|
6.2
|
|
18.1
|
|
6.5
|
|
10.9
|
Nutrition
|
|
2,124
|
|
3,518
|
|
5,642
|
|
(19.2)
|
|
(2.9)
|
|
(9.8)
|
|
(19.2)
|
|
2.8
|
|
(6.4)
|
Diagnostics
|
|
6,951
|
|
6,328
|
|
13,279
|
|
46.6
|
|
(1.6)
|
|
18.9
|
|
46.6
|
|
5.8
|
|
23.1
|
Established
Pharmaceuticals
|
|
—
|
|
3,696
|
|
3,696
|
|
n/a
|
|
5.2
|
|
5.2
|
|
n/a
|
|
11.6
|
|
11.6
|
Medical
Devices
|
|
4,840
|
|
6,097
|
|
10,937
|
|
10.4
|
|
(2.2)
|
|
3.0
|
|
10.4
|
|
6.9
|
|
8.4
|
|
* Total
Abbott sales include Other Sales of approximately $3 million in
3Q22 and approximately $8 million in 9M22.
|
|
n/a = Not
Applicable.
|
|
Note: In order to
compute results excluding the impact of exchange rates, current
year U.S. dollar sales are multiplied or divided, as appropriate,
by the current year average foreign exchange rates and then those
amounts are multiplied or divided, as appropriate, by the prior
year average foreign exchange rates.
|
Total sales in the third quarter were negatively impacted by
year-over-year declines in COVID-19 testing-related sales and a
manufacturing stoppage initiated in February of certain infant
formula products manufactured at Abbott's Sturgis, Michigan, facility. Excluding
COVID-19 testing-related sales4 and the U.S. sales
associated with the manufacturing stoppage5 in the
current and prior years, total worldwide sales decreased 0.6
percent on a reported basis and increased 6.0 percent on an organic
basis in the third quarter.
Nutrition
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q21
|
|
|
Sales
3Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
686
|
|
1,109
|
|
1,795
|
|
(25.3)
|
|
(6.8)
|
|
(14.9)
|
|
(25.3)
|
|
1.2
|
|
(10.3)
|
Pediatric
|
|
357
|
|
470
|
|
827
|
|
(39.1)
|
|
(8.6)
|
|
(24.8)
|
|
(39.1)
|
|
(2.6)
|
|
(22.0)
|
Adult
|
|
329
|
|
639
|
|
968
|
|
(1.1)
|
|
(5.4)
|
|
(4.0)
|
|
(1.1)
|
|
4.1
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
9M21
|
|
|
Sales
9M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
2,124
|
|
3,518
|
|
5,642
|
|
(19.2)
|
|
(2.9)
|
|
(9.8)
|
|
(19.2)
|
|
2.8
|
|
(6.4)
|
Pediatric
|
|
1,108
|
|
1,491
|
|
2,599
|
|
(31.7)
|
|
(8.9)
|
|
(20.2)
|
|
(31.7)
|
|
(4.6)
|
|
(18.1)
|
Adult
|
|
1,016
|
|
2,027
|
|
3,043
|
|
1.0
|
|
2.0
|
|
1.7
|
|
1.0
|
|
9.0
|
|
6.3
|
Worldwide Nutrition sales decreased 14.9 percent on a reported
basis and 10.3 percent on an organic basis in the third quarter.
Total worldwide Nutrition and Pediatric Nutrition sales were
negatively impacted by a manufacturing stoppage initiated in
February of certain infant formula products manufactured at
Abbott's Sturgis, Michigan,
facility. Abbott resumed production at the facility during the
third quarter. International Pediatric sales were negatively
impacted by challenging market conditions in China.
In Adult Nutrition, global sales decreased 4.0 percent on a
reported basis and increased 2.4 percent on an organic basis, led
by Ensure®, Abbott's market-leading complete and
balanced nutrition brand.
Diagnostics
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q21
|
|
|
Sales
3Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,741
|
|
1,930
|
|
3,671
|
|
(10.6)
|
|
(1.8)
|
|
(6.2)
|
|
(10.6)
|
|
9.2
|
|
(0.6)
|
Core
Laboratory
|
|
281
|
|
938
|
|
1,219
|
|
(3.2)
|
|
(6.3)
|
|
(5.6)
|
|
(3.2)
|
|
3.7
|
|
2.2
|
Molecular
|
|
65
|
|
118
|
|
183
|
|
(60.1)
|
|
(35.4)
|
|
(47.0)
|
|
(60.1)
|
|
(30.3)
|
|
(44.3)
|
Point of
Care
|
|
92
|
|
35
|
|
127
|
|
(7.3)
|
|
(0.6)
|
|
(5.6)
|
|
(7.3)
|
|
5.3
|
|
(4.0)
|
Rapid
Diagnostics
|
|
1,303
|
|
839
|
|
2,142
|
|
(6.6)
|
|
12.5
|
|
0.1
|
|
(6.6)
|
|
26.5
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
9M21
|
|
|
Sales
9M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
6,951
|
|
6,328
|
|
13,279
|
|
46.6
|
|
(1.6)
|
|
18.9
|
|
46.6
|
|
5.8
|
|
23.1
|
Core
Laboratory
|
|
836
|
|
2,788
|
|
3,624
|
|
(1.1)
|
|
(5.0)
|
|
(4.1)
|
|
(1.1)
|
|
2.4
|
|
1.6
|
Molecular
|
|
308
|
|
507
|
|
815
|
|
(28.5)
|
|
(22.1)
|
|
(24.7)
|
|
(28.5)
|
|
(17.5)
|
|
(21.9)
|
Point of
Care
|
|
284
|
|
110
|
|
394
|
|
(1.7)
|
|
(1.4)
|
|
(1.6)
|
|
(1.7)
|
|
3.1
|
|
(0.4)
|
Rapid
Diagnostics
|
|
5,523
|
|
2,923
|
|
8,446
|
|
73.8
|
|
7.0
|
|
42.9
|
|
73.8
|
|
15.1
|
|
46.7
|
Diagnostics sales in the third quarter were negatively impacted
by year-over-year declines in COVID-19 testing-related sales.
Global COVID-19 testing-related sales were $1.7 billion in the third quarter of 2022
compared to $1.9 billion in the third
quarter of last year.6 Excluding COVID-19
testing-related sales, worldwide Diagnostics sales declined 0.2
percent on a reported basis and increased 6.1 percent on an organic
basis in the third quarter.4
Established
Pharmaceuticals
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q21
|
|
|
Sales
3Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
—
|
|
1,326
|
|
1,326
|
|
n/a
|
|
4.9
|
|
4.9
|
|
n/a
|
|
12.2
|
|
12.2
|
Key Emerging
Markets
|
|
—
|
|
993
|
|
993
|
|
n/a
|
|
6.2
|
|
6.2
|
|
n/a
|
|
13.0
|
|
13.0
|
Other
|
|
—
|
|
333
|
|
333
|
|
n/a
|
|
1.1
|
|
1.1
|
|
n/a
|
|
9.9
|
|
9.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
9M21
|
|
|
Sales
9M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
—
|
|
3,696
|
|
3,696
|
|
n/a
|
|
5.2
|
|
5.2
|
|
n/a
|
|
11.6
|
|
11.6
|
Key Emerging
Markets
|
|
—
|
|
2,826
|
|
2,826
|
|
n/a
|
|
5.8
|
|
5.8
|
|
n/a
|
|
12.2
|
|
12.2
|
Other
|
|
—
|
|
870
|
|
870
|
|
n/a
|
|
3.2
|
|
3.2
|
|
n/a
|
|
9.5
|
|
9.5
|
Established Pharmaceuticals sales increased 4.9 percent on a
reported basis and 12.2 percent on an organic basis in the third
quarter.
Key Emerging Markets include several emerging countries that
represent the most attractive long-term growth opportunities for
Abbott's branded generics product portfolio. Sales in these
geographies increased 6.2 percent on a reported basis and 13.0
percent on an organic basis, led by strong growth in several
geographies including India,
China, Brazil and Vietnam and several therapeutic areas,
including cardiometabolic, gastroenterology and central nervous
system/pain management.
Other sales increased 1.1 percent on a reported basis and 9.9
percent on an organic basis in the quarter.
Medical
Devices
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q21
|
|
|
Sales
3Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,664
|
|
1,951
|
|
3,615
|
|
11.3
|
|
(8.7)
|
|
(0.5)
|
|
11.3
|
|
3.1
|
|
6.4
|
Rhythm
Management
|
|
263
|
|
270
|
|
533
|
|
(1.0)
|
|
(11.6)
|
|
(6.7)
|
|
(1.0)
|
|
(0.7)
|
|
(0.8)
|
Electrophysiology
|
|
225
|
|
244
|
|
469
|
|
17.3
|
|
(17.1)
|
|
(3.5)
|
|
17.3
|
|
(4.9)
|
|
3.8
|
Heart
Failure
|
|
177
|
|
51
|
|
228
|
|
4.2
|
|
(13.3)
|
|
(0.3)
|
|
4.2
|
|
(3.1)
|
|
2.3
|
Vascular
|
|
213
|
|
393
|
|
606
|
|
(2.9)
|
|
(7.6)
|
|
(6.0)
|
|
(2.9)
|
|
2.2
|
|
0.4
|
Structural
Heart
|
|
207
|
|
213
|
|
420
|
|
16.7
|
|
(0.7)
|
|
7.2
|
|
16.7
|
|
13.7
|
|
15.1
|
Neuromodulation
|
|
156
|
|
36
|
|
192
|
|
4.7
|
|
(11.1)
|
|
1.3
|
|
4.7
|
|
1.9
|
|
4.1
|
Diabetes
Care
|
|
423
|
|
744
|
|
1,167
|
|
31.3
|
|
(6.8)
|
|
4.1
|
|
31.3
|
|
5.5
|
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
9M21
|
|
|
Sales
9M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
4,840
|
|
6,097
|
|
10,937
|
|
10.4
|
|
(2.2)
|
|
3.0
|
|
10.4
|
|
6.9
|
|
8.4
|
Rhythm
Management
|
|
775
|
|
830
|
|
1,605
|
|
(0.2)
|
|
(5.8)
|
|
(3.2)
|
|
(0.2)
|
|
2.6
|
|
1.3
|
Electrophysiology
|
|
667
|
|
773
|
|
1,440
|
|
15.1
|
|
(6.2)
|
|
2.6
|
|
15.1
|
|
3.4
|
|
8.2
|
Heart
Failure
|
|
523
|
|
167
|
|
690
|
|
8.3
|
|
—
|
|
6.2
|
|
8.3
|
|
9.2
|
|
8.6
|
Vascular
|
|
650
|
|
1,228
|
|
1,878
|
|
(5.0)
|
|
(5.0)
|
|
(5.0)
|
|
(5.0)
|
|
2.5
|
|
(0.1)
|
Structural
Heart
|
|
604
|
|
667
|
|
1,271
|
|
12.4
|
|
2.0
|
|
6.7
|
|
12.4
|
|
13.1
|
|
12.8
|
Neuromodulation
|
|
456
|
|
112
|
|
568
|
|
(0.8)
|
|
(9.7)
|
|
(2.7)
|
|
(0.8)
|
|
—
|
|
(0.6)
|
Diabetes
Care
|
|
1,165
|
|
2,320
|
|
3,485
|
|
34.7
|
|
1.2
|
|
10.4
|
|
34.7
|
|
10.9
|
|
17.4
|
Worldwide Medical Devices sales decreased 0.5 percent on a
reported basis and increased 6.4 percent on an organic basis in the
third quarter. Sales growth in the U.S. was led by strong
double-digit growth in Electrophysiology, Structural Heart and
Diabetes Care. Internationally, sales growth was negatively
impacted by intermittent COVID-19 lockdown restrictions in
China as well as supply
constraints in certain areas, most notably
Electrophysiology.
In Diabetes Care, FreeStyle Libre sales were approximately
$1.0 billion in the quarter,
including U.S. growth of more than 40 percent. International
FreeStyle Libre sales were negatively impacted by supply
constraints of Abbott's first-generation FreeStyle Libre system in
certain emerging markets.
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott is raising
its projected full-year 2022 diluted earnings per share under GAAP
to $3.75 to $3.81. Abbott forecasts specified items for the
full-year 2022 of $1.42 per share
primarily related to intangible amortization, costs related to a
voluntary recall, asset impairments, expenses associated with
acquisitions, restructurings and cost reduction initiatives and
other net expenses. Excluding specified items, Abbott is raising
its projected adjusted diluted earnings per share to $5.17 to $5.23 for
the full-year 2022.
ABBOTT DECLARES 395TH CONSECUTIVE QUARTERLY
DIVIDEND
On Sept. 15, 2022,
the board of directors of Abbott declared the company's quarterly
dividend of $0.47 per share. Abbott's
cash dividend is payable Nov. 15,
2022, to shareholders of record at the close of business on
Oct. 14, 2022.
Abbott has increased its dividend payout for 50 consecutive
years and is a member of the S&P 500 Dividend Aristocrats
Index, which tracks companies that have annually increased their
dividend for at least 25 consecutive years.
About Abbott:
Abbott is a global healthcare leader that helps people live more
fully at all stages of life. Our portfolio of life-changing
technologies spans the spectrum of healthcare, with leading
businesses and products in diagnostics, medical devices,
nutritionals and branded generic medicines. Our 113,000 colleagues
serve people in more than 160 countries.
Connect with us at www.abbott.com, on LinkedIn
at www.linkedin.com/company/abbott-/, on Facebook at
www.facebook.com/Abbott and on Twitter @AbbottNews.
Abbott will live-webcast its 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 webcast will be
available later in the day.
— 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" in our Annual Report on
Form 10-K for the year ended Dec. 31,
2021, and are incorporated herein 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.
1
|
All reported amounts
relate to continuing operations only as there are no discontinued
operations in the periods presented.
|
2
|
Data on file, Abbott
Diabetes Care. Comparison based on publicly available
information.
|
3
|
Among patient-applied
sensors. Data on file, Abbott Diabetes Care.
|
4
|
In the third quarter of
2022, COVID-19 testing-related sales were $1.671 billion. In the
third quarter of 2021, total worldwide sales were $10.928 billion
and total Diagnostic sales were $3.912 billion, both of which
included COVID-19 testing-related sales of $1.908
billion.
|
5
|
U.S. sales of certain
infant formula products were $102 million in the third quarter of
2022 and $332 million in the third quarter of 2021.
|
6
|
In the third quarter of
2022, Core Laboratory, Molecular Diagnostics, and Rapid Diagnostics
COVID-19 testing-related sales were $11 million, $54 million, and
$1.606 billion, respectively. Core Laboratory, Molecular
Diagnostics, and Rapid Diagnostics COVID-19 testing-related sales
in the third quarter of 2021 were $47 million, $218 million and
$1.643 billion, respectively.
|
Abbott Laboratories
and Subsidiaries
Condensed Consolidated Statement of Earnings
Third Quarter Ended September 30, 2022 and 2021
(in millions, except per share data)
(unaudited)
|
|
|
|
3Q22
|
|
3Q21
|
|
%
Change
|
|
Net Sales
|
$10,410
|
|
$10,928
|
|
(4.7)
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization expense
|
4,629
|
|
4,423
|
|
4.7
|
|
Amortization of
intangible assets
|
498
|
|
520
|
|
(4.1)
|
|
Research and
development
|
782
|
|
672
|
|
16.2
|
|
Selling, general, and
administrative
|
2,731
|
|
2,767
|
|
(1.3)
|
|
Total Operating Cost
and Expenses
|
8,640
|
|
8,382
|
|
3.1
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
1,770
|
|
2,546
|
|
(30.5)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
86
|
|
123
|
|
(29.3)
|
|
Net foreign exchange
(gain) loss
|
19
|
|
4
|
|
n/m
|
|
Other (income)
expense, net
|
(93)
|
|
(74)
|
|
25.4
|
|
Earnings before
taxes
|
1,758
|
|
2,493
|
|
(29.5)
|
|
Taxes on
earnings
|
323
|
|
393
|
|
(17.7)
|
|
|
|
|
|
|
|
|
Net
Earnings
|
$1,435
|
|
$2,100
|
|
(31.7)
|
|
|
|
|
|
|
|
|
Net Earnings Excluding
Specified Items, as described below
|
$2,036
|
|
$2,518
|
|
(19.2)
|
1)
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share
|
$0.81
|
|
$1.17
|
|
(30.8)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share,
excluding Specified
Items, as described below
|
$1.15
|
|
$1.40
|
|
(17.9)
|
1)
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
Plus Dilutive Common
Stock Options
|
1,764
|
|
1,789
|
|
|
|
|
|
|
|
NOTES:
|
See tables titled
"Non-GAAP Reconciliation of Financial Information" for an
explanation of certain non-GAAP financial information.
|
n/m = Percent change is
not meaningful.
|
See footnotes
below.
|
|
1)
|
2022 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $601 million, or $0.34 per share,
for intangible amortization, charges related to the impairment of
R&D intangible assets, expenses associated with acquisitions,
restructuring and cost reduction initiatives and other net
expenses.
|
|
|
|
2021 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $418
million, or $0.23 per share, for intangible amortization and other
expenses primarily associated with restructuring actions and
acquisitions, partially offset by a change in estimate to the
restructuring actions recognized in the second quarter related to
Abbott's manufacturing network for COVID-19 diagnostic tests to
reflect current and projected demand.
|
Abbott Laboratories and
Subsidiaries
Condensed Consolidated Statement
of Earnings
Nine Months Ended September 30, 2022 and
2021
(in millions, except per share
data)
(unaudited)
|
|
|
9M22
|
|
9M21
|
|
%
Change
|
|
Net Sales
|
$33,562
|
|
$31,607
|
|
6.2
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization expense
|
14,549
|
|
13,771
|
|
5.6
|
|
Amortization of
intangible assets
|
1,517
|
|
1,533
|
|
(1.0)
|
|
Research and
development
|
2,163
|
|
1,980
|
|
9.2
|
|
Selling, general, and
administrative
|
8,275
|
|
8,276
|
|
—
|
|
Total Operating Cost
and Expenses
|
26,504
|
|
25,560
|
|
3.7
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
7,058
|
|
6,047
|
|
16.7
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
309
|
|
370
|
|
(16.3)
|
|
Net foreign exchange
(gain) loss
|
16
|
|
7
|
|
n/m
|
|
Other (income)
expense, net
|
(253)
|
|
(214)
|
|
18.3
|
|
Earnings before
taxes
|
6,986
|
|
5,884
|
|
18.7
|
|
Taxes on
earnings
|
1,086
|
|
802
|
|
35.5
|
1)
|
|
|
|
|
|
|
|
Net
Earnings
|
$5,900
|
|
$5,082
|
|
16.1
|
|
|
|
|
|
|
|
|
Net Earnings Excluding
Specified Items, as described below
|
$7,655
|
|
$7,001
|
|
9.3
|
2)
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share
|
$3.32
|
|
$2.83
|
|
17.3
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share,
excluding Specified
Items, as described below
|
$4.31
|
|
$3.89
|
|
10.8
|
2)
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
Plus Dilutive Common
Stock Options
|
1,768
|
|
1,791
|
|
|
|
|
|
|
|
NOTES:
|
See tables titled
"Non-GAAP Reconciliation of Financial Information" for an
explanation of certain non-GAAP financial information.
|
n/m = Percent change is
not meaningful.
|
See footnotes
below.
|
|
|
1)
|
2022 Taxes on Earnings
includes the recognition of approximately $20 million of net tax
expense as a result of the resolution of various tax positions
related to prior years and approximately $36 million in excess tax
benefits associated with share-based compensation.
|
|
|
|
2021 Taxes on Earnings
includes the recognition of approximately $97 million in excess tax
benefits associated with share-based compensation.
|
|
|
2)
|
2022 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $1.755 billion, or $0.99 per
share, for intangible amortization, charges related to a voluntary
recall and the impairment of R&D intangible assets,
acquisition-related costs and other net expenses.
|
|
|
|
2021 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $1.919
billion, or $1.06 per share, for intangible amortization and other
net expenses primarily associated with restructuring actions,
certain litigation and acquisitions.
|
|
|
Abbott Laboratories
and Subsidiaries
Non-GAAP Reconciliation of Financial
Information
Third Quarter Ended September 30,
2022 and 2021
(in millions, except per share
data)
(unaudited)
|
|
|
3Q22
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$
498
|
|
$
(498)
|
|
$
—
|
|
|
Gross
Margin
|
5,283
|
|
540
|
|
5,823
|
|
55.9 %
|
R&D
|
782
|
|
(146)
|
|
636
|
|
6.1 %
|
SG&A
|
2,731
|
|
(39)
|
|
2,692
|
|
25.9 %
|
Other (income)
expense, net
|
(93)
|
|
(4)
|
|
(97)
|
|
|
Earnings before
taxes
|
1,758
|
|
729
|
|
2,487
|
|
|
Taxes on
Earnings
|
323
|
|
128
|
|
451
|
|
|
Net
Earnings
|
1,435
|
|
601
|
|
2,036
|
|
|
Diluted Earnings per
Share
|
$
0.81
|
|
$
0.34
|
|
$
1.15
|
|
|
|
|
Specified items reflect
intangible amortization expense of $498 million and other net
expenses of $231 million associated with the impairment of R&D
intangible assets, costs associated with acquisitions and other
expenses. See tables titled "Details of Specified Items" for
additional details regarding specified items.
|
|
3Q21
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$
520
|
|
$
(520)
|
|
$
—
|
|
|
Gross
Margin
|
5,985
|
|
445
|
|
6,430
|
|
58.8 %
|
R&D
|
672
|
|
(21)
|
|
651
|
|
6.0 %
|
SG&A
|
2,767
|
|
(30)
|
|
2,737
|
|
25.0 %
|
Other (income)
expense, net
|
(74)
|
|
7
|
|
(67)
|
|
|
Earnings before
taxes
|
2,493
|
|
489
|
|
2,982
|
|
|
Taxes on
Earnings
|
393
|
|
71
|
|
464
|
|
|
Net
Earnings
|
2,100
|
|
418
|
|
2,518
|
|
|
Diluted Earnings per
Share
|
$
1.17
|
|
$
0.23
|
|
$
1.40
|
|
|
|
|
Specified items reflect
intangible amortization expense of $520 million and net pretax
income of $31 million, primarily associated with a change in
estimate to the restructuring actions recognized in the second
quarter of 2021, partially offset by costs associated with
acquisitions and other expenses. See tables titled "Details of
Specified Items" for additional details regarding specified
items.
|
Abbott Laboratories
and Subsidiaries
Non-GAAP Reconciliation of Financial
Information
Nine Months Ended September 30, 2022 and
2021
(in millions, except per share
data)
(unaudited)
|
|
|
9M22
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$
1,517
|
|
$ (1,517)
|
|
$
—
|
|
|
Gross
Margin
|
17,496
|
|
1,739
|
|
19,235
|
|
57.3 %
|
R&D
|
2,163
|
|
(211)
|
|
1,952
|
|
5.8 %
|
SG&A
|
8,275
|
|
(92)
|
|
8,183
|
|
24.4 %
|
Other (income)
expense, net
|
(253)
|
|
(31)
|
|
(284)
|
|
|
Earnings before
taxes
|
6,986
|
|
2,073
|
|
9,059
|
|
|
Taxes on
Earnings
|
1,086
|
|
318
|
|
1,404
|
|
|
Net
Earnings
|
5,900
|
|
1,755
|
|
7,655
|
|
|
Diluted Earnings per
Share
|
$
3.32
|
|
$
0.99
|
|
$
4.31
|
|
|
|
|
Specified items reflect
intangible amortization expense of $1.517 billion and other net
expenses of $556 million that includes charges for the impairment
of R&D intangible assets, costs associated with a product
recall, acquisition-related costs, and other net expenses. See
tables titled "Details of Specified Items" for additional details
regarding specified items.
|
|
9M21
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$
1,533
|
|
$ (1,533)
|
|
$
—
|
|
|
Gross
Margin
|
16,303
|
|
2,042
|
|
18,345
|
|
58.0 %
|
R&D
|
1,980
|
|
(67)
|
|
1,913
|
|
6.1 %
|
SG&A
|
8,276
|
|
(274)
|
|
8,002
|
|
25.3 %
|
Other (income)
expense, net
|
(214)
|
|
30
|
|
(184)
|
|
|
Earnings before
taxes
|
5,884
|
|
2,353
|
|
8,237
|
|
|
Taxes on
Earnings
|
802
|
|
434
|
|
1,236
|
|
|
Net
Earnings
|
5,082
|
|
1,919
|
|
7,001
|
|
|
Diluted Earnings per
Share
|
$
2.83
|
|
$
1.06
|
|
$
3.89
|
|
|
|
|
Specified items reflect
intangible amortization expense of $1.533 billion and other net
expenses of $820 million, primarily associated with restructuring
actions, certain litigation, acquisitions and other expenses. See
tables titled "Details of Specified Items" for additional details
regarding specified items.
|
A reconciliation of the
third-quarter tax rates for 2022 and 2021 is shown
below:
|
|
|
3Q22
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$
1,758
|
|
$
323
|
|
18.4 %
|
|
Specified
items
|
729
|
|
128
|
|
|
|
Excluding specified
items
|
$
2,487
|
|
$
451
|
|
18.1 %
|
|
|
3Q21
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$
2,493
|
|
$
393
|
|
15.7 %
|
|
Specified
items
|
489
|
|
71
|
|
|
|
Excluding specified
items
|
$
2,982
|
|
$
464
|
|
15.5 %
|
|
|
|
A reconciliation of the
year-to-date tax rates for 2022 and 2021 is shown below:
|
|
|
9M22
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$
6,986
|
|
$
1,086
|
|
15.6 %
|
1)
|
Specified
items
|
2,073
|
|
318
|
|
|
|
Excluding specified
items
|
$
9,059
|
|
$
1,404
|
|
15.5 %
|
|
|
9M21
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$
5,884
|
|
$
802
|
|
13.6 %
|
2)
|
Specified
items
|
2,353
|
|
434
|
|
|
|
Excluding specified
items
|
$
8,237
|
|
$
1,236
|
|
15.0 %
|
|
|
|
1)
|
2022 Taxes on Earnings
includes the recognition of approximately $20 million of net tax
expense as a result of the resolution of various tax positions
related to prior years and approximately $36 million in excess tax
benefits associated with share-based compensation.
|
|
|
2)
|
2021 Tax expense on
Earnings from Continuing Operations includes the recognition of
approximately $97 million in excess tax benefits associated with
share-based compensation.
|
Abbott Laboratories and
Subsidiaries
Details of
Specified Items
Third Quarter Ended September 30, 2022
(in millions, except per share
data)
(unaudited)
|
|
|
Acquisition
or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives
(b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross Margin
|
$
15
|
|
$
11
|
|
$
498
|
|
$
16
|
|
$
540
|
R&D
|
(3)
|
|
(3)
|
|
—
|
|
(140)
|
|
(146)
|
SG&A
|
(13)
|
|
(5)
|
|
—
|
|
(21)
|
|
(39)
|
Other (income) expense,
net
|
(4)
|
|
—
|
|
—
|
|
—
|
|
(4)
|
Earnings before
taxes
|
$
35
|
|
$
19
|
|
$
498
|
|
$
177
|
|
729
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
128
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
601
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
0.34
|
|
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial
Information."
|
|
a)
|
Acquisition-related
expenses include integration costs, which represent incremental
costs directly related to integrating the acquired businesses and
include expenditures for the integration of systems, processes and
business activities.
|
|
|
b)
|
Restructuring and cost
reduction initiative expenses include severance, outplacement, and
other direct costs associated with specific restructuring plans and
cost reduction initiatives.
|
|
|
c)
|
Other includes charges
related to an impairment of R&D intangible assets acquired in a
business combination, incremental costs to comply with the European
Union's Medical Device (MDR) and In Vitro Diagnostics Medical
Device (IVDR) Regulations for previously approved products and
costs related to certain litigation.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items.
|
Abbott Laboratories
and Subsidiaries
Details of Specified Items
Third Quarter Ended September 30,
2021
(in millions, except per share
data)
(unaudited)
|
|
|
Acquisition
or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives
(b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross Margin
|
$
16
|
|
$
(96)
|
|
$
520
|
|
$
5
|
|
$
445
|
R&D
|
(4)
|
|
—
|
|
—
|
|
(17)
|
|
(21)
|
SG&A
|
(12)
|
|
(23)
|
|
—
|
|
5
|
|
(30)
|
Other (income) expense,
net
|
6
|
|
—
|
|
—
|
|
1
|
|
7
|
Earnings before
taxes
|
$
26
|
|
$
(73)
|
|
$
520
|
|
$
16
|
|
489
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
71
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
418
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
0.23
|
|
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial
Information."
|
|
a)
|
Acquisition-related
expenses include integration costs, which represent incremental
costs directly related to integrating the acquired businesses and
include expenditures for the integration of systems, processes and
business activities.
|
|
|
b)
|
Restructuring and cost
reduction initiative expenses include severance, outplacement, and
other direct costs associated with specific restructuring plans and
cost reduction initiatives. Restructuring and cost reduction plans
consist of distinct initiatives to streamline operations including
the consolidation and rationalization of business activities and
facilities, workforce reductions, the transfer of product lines
between manufacturing facilities, and the transfer of other
business activities between sites. The Gross Margin amount includes
a credit associated with a change in estimate to the charges taken
in the second quarter of 2021 for a restructuring plan related to
Abbott's manufacturing network for COVID-19 diagnostic tests to
reflect current and projected demand.
|
|
|
c)
|
Other includes
incremental costs to comply with the European Union's MDR and IVDR
Regulations for previously approved products.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
Abbott Laboratories
and Subsidiaries
Details of Specified Items
Nine Months Ended September 30,
2022
(in millions, except per share
data)
(unaudited)
|
|
|
Acquisition
or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives
(b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross Margin
|
$
56
|
|
$
(1)
|
|
$
1,517
|
|
$
167
|
|
$
1,739
|
R&D
|
(10)
|
|
(4)
|
|
—
|
|
(197)
|
|
(211)
|
SG&A
|
(31)
|
|
(5)
|
|
—
|
|
(56)
|
|
(92)
|
Other (income) expense,
net
|
(15)
|
|
—
|
|
—
|
|
(16)
|
|
(31)
|
Earnings before
taxes
|
$
112
|
|
$
8
|
|
$
1,517
|
|
$
436
|
|
2,073
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
318
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
1,755
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
0.99
|
|
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial
Information."
|
|
|
a)
|
Acquisition-related
expenses include integration costs, which represent incremental
costs directly related to integrating the acquired businesses and
include expenditures for the integration of systems, processes and
business activities.
|
|
|
b)
|
Restructuring and cost
reduction initiative expenses include severance, outplacement, and
other direct costs associated with specific restructuring plans and
cost reduction initiatives. The Gross Margin amount includes a
credit associated with the charges taken in the second quarter of
2021 for a restructuring plan related to Abbott's manufacturing
network for COVID-19 diagnostic tests.
|
|
|
c)
|
Other primarily relates
to the net costs related to a voluntary recall within the Nutrition
segment, charges associated with the impairment of R&D
intangible assets acquired in a business combination, incremental
costs to comply with the European Union's MDR and IVDR Regulations
for previously approved products and costs related to certain
litigation.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items, excess tax benefits
associated with share-based compensation and net tax expense as a
result of the resolution of various tax positions related to prior
years.
|
Abbott Laboratories
and Subsidiaries
Details of Specified Items
Nine Months Ended September 30,
2021
(in millions, except per share
data)
(unaudited)
|
|
|
Acquisition
or
Divestiture-
related (a)
|
|
Restructuring
and Cost
Reduction
Initiatives
(b)
|
|
Intangible
Amortization
|
|
Other (c)
|
|
Total
Specifieds
|
Gross Margin
|
$
56
|
|
$
433
|
|
$
1,533
|
|
$
20
|
|
$
2,042
|
R&D
|
(9)
|
|
1
|
|
—
|
|
(59)
|
|
(67)
|
SG&A
|
(43)
|
|
(22)
|
|
—
|
|
(209)
|
|
(274)
|
Other (income) expense,
net
|
3
|
|
1
|
|
—
|
|
26
|
|
30
|
Earnings before
taxes
|
$
105
|
|
$
453
|
|
$
1,533
|
|
$
262
|
|
2,353
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
434
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
1,919
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
1.06
|
|
|
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial
Information."
|
|
|
a)
|
Acquisition-related
expenses include integration costs, which represent incremental
costs directly related to integrating the acquired businesses and
include expenditures for the integration of systems, processes and
business activities.
|
|
|
b)
|
Restructuring and cost
reduction initiative expenses include severance, outplacement, and
other direct costs associated with specific restructuring plans and
cost reduction initiatives. Restructuring and cost reduction plans
consist of distinct initiatives to streamline operations including
the consolidation and rationalization of business activities and
facilities, workforce reductions, the transfer of product lines
between manufacturing facilities, and the transfer of other
business activities between sites. The Gross Margin amount includes
charges associated with a restructuring plan to align Abbott's
manufacturing network for COVID-19 diagnostic tests with changes
during the year in current and projected testing demand.
|
|
|
c)
|
Other primarily relates
to the costs related to certain litigation, the acquisition of a
research and development asset, the impairments of an equity
investment and an intangible asset, and the gain on the disposition
of an equity method investment.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
View original
content:https://www.prnewswire.com/news-releases/abbott-reports-third-quarter-2022-results-and-raises-full-year-eps-guidance-301653429.html
SOURCE Abbott