- Fourth-quarter sales of $10.1
billion; full-year 2022 sales of $43.7 billion
- Full-year 2022 sales growth of 1.3 percent; organic sales
growth of 6.4 percent
- Full-year 2022 GAAP diluted EPS of $3.91; adjusted diluted EPS of $5.34
- Continues to strengthen portfolio with steady cadence of new
product approvals
ABBOTT PARK, Ill., Jan. 25, 2023
/PRNewswire/ -- Abbott (NYSE: ABT) today announced financial
results for the fourth quarter ended Dec.
31, 2022.
- Fourth-quarter sales of $10.1
billion, which were negatively impacted by an expected
year-over-year decline in COVID-19 testing-related sales, decreased
12.0 percent on a reported basis and 6.1 percent on an organic
basis, which excludes the impact of foreign exchange.
- Excluding COVID-19 testing-related sales1,
fourth-quarter sales decreased 1.4 percent on a reported basis and
increased 5.4 percent on an organic basis.
- Excluding COVID-19 testing-related sales2 and U.S.
infant formula sales that were impacted by manufacturing
disruptions3, full-year 2022 sales increased 1.9 percent
on a reported basis and 7.4 percent on an organic basis.
- GAAP diluted EPS was $0.59 in the
fourth quarter. Excluding specified items, adjusted diluted EPS was
$1.03.
- Abbott issues full-year 2023 guidance for diluted EPS from
continuing operations on a GAAP basis of $3.05 to $3.25 and
full-year adjusted EPS from continuing operations of $4.30 to $4.50.
- Abbott projects full-year 2023 organic sales growth, excluding
COVID-19 testing-related sales, of high-single digits4
and COVID-19 testing-related sales of around $2.0 billion.
- In October, Abbott's market-leading FreeStyle Libre®
continuous glucose monitoring system was named the "Best Medical
Technology" of the last 50 years by the Galien Foundation.
- In December, Abbott announced U.S. Food and Drug Administration
(FDA) approval of its Eterna™ spinal cord stimulation system —
the smallest implantable, rechargeable system currently available
for the treatment of chronic pain.5
- In January, Abbott announced U.S. FDA approval of its minimally
invasive Navitor™ transcatheter aortic valve implantation
(TAVI) system for people with severe aortic stenosis who are at
high risk for surgery.
"We significantly exceeded the EPS guidance we provided at the
beginning of last year despite challenging global business
conditions," said Robert B. Ford,
chairman and chief executive officer, Abbott. "Our R&D pipeline
continues to be highly productive with several recent and upcoming
new product launches that position us well going forward."
FOURTH-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates
on an organic basis is an appropriate way for investors to best
understand the underlying performance of the business. Organic
sales growth excludes the impact of foreign exchange. In order to
compute results excluding the impact of exchange rates, current
year U.S. dollar sales are multiplied or divided, as appropriate,
by the current year average foreign exchange rates and then those
amounts are multiplied or divided, as appropriate, by the prior
year average foreign exchange rates. Management further believes
that measuring sales growth rates on an organic basis excluding
COVID-19 tests is an appropriate way for investors to best
understand the underlying performance of the business in the fourth
quarter ended Dec. 31, 2022 as well
as in 2023 as the COVID-19 pandemic shifts to an endemic state,
resulting in significantly lower expected demand for COVID-19
tests.
|
Total
Company
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
4Q21
|
|
|
Sales
4Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
6
|
|
4,219
|
|
5,872
|
|
10,091
|
|
(13.1)
|
|
(11.2)
|
|
(12.0)
|
|
(13.1)
|
|
(0.9)
|
|
(6.1)
|
|
Nutrition
|
|
795
|
|
1,022
|
|
1,817
|
|
(14.4)
|
|
(8.3)
|
|
(11.1)
|
|
(14.4)
|
|
1.4
|
|
(5.7)
|
|
Diagnostics
|
|
1,695
|
|
1,610
|
|
3,305
|
|
(29.0)
|
|
(22.8)
|
|
(26.1)
|
|
(29.0)
|
|
(12.5)
|
|
(21.3)
|
|
Established
Pharmaceuticals
|
|
—
|
|
1,216
|
|
1,216
|
|
n/a
|
|
1.0
|
|
1.0
|
|
n/a
|
|
7.9
|
|
7.9
|
|
Medical
Devices
|
|
1,726
|
|
2,024
|
|
3,750
|
|
12.2
|
|
(8.4)
|
|
—
|
|
12.2
|
|
4.1
|
|
7.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
12M21
|
|
|
Sales
12M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
6
|
|
18,142
|
|
25,511
|
|
43,653
|
|
9.0
|
|
(3.5)
|
|
1.3
|
|
9.0
|
|
4.7
|
|
6.4
|
|
Nutrition
|
|
2,919
|
|
4,540
|
|
7,459
|
|
(17.9)
|
|
(4.2)
|
|
(10.1)
|
|
(17.9)
|
|
2.5
|
|
(6.2)
|
|
Diagnostics
|
|
8,646
|
|
7,938
|
|
16,584
|
|
21.3
|
|
(6.8)
|
|
6.0
|
|
21.3
|
|
1.3
|
|
10.4
|
|
Established
Pharmaceuticals
|
|
—
|
|
4,912
|
|
4,912
|
|
n/a
|
|
4.1
|
|
4.1
|
|
n/a
|
|
10.6
|
|
10.6
|
|
Medical
Devices
|
|
6,566
|
|
8,121
|
|
14,687
|
|
10.9
|
|
(3.8)
|
|
2.2
|
|
10.9
|
|
6.2
|
|
8.1
|
Worldwide COVID-19 testing-related sales were $1.069 billion in the fourth quarter of 2022
compared to $2.319 billion in the
fourth quarter of the prior year. Worldwide COVID-19
testing-related sales were $8.368
billion in the full year of 2022 compared to $7.679 billion in the prior year.
The following tables summarize sales excluding COVID-19
testing-related sales and the change in reported and organic sales
excluding COVID-19 testing-related sales in 2022 versus the prior
year2:
|
|
|
|
|
|
|
|
% Change vs.
4Q21
|
|
|
Sales excl. COVID
tests 4Q22
|
|
Reported excl. COVID
tests
|
|
Organic excl. COVID
tests
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
1
|
|
3,443
|
|
5,579
|
|
9,022
|
|
5.8
|
|
(5.4)
|
|
(1.4)
|
|
5.8
|
|
5.3
|
|
5.4
|
|
Diagnostics
|
|
919
|
|
1,317
|
|
2,236
|
|
16.8
|
|
(3.6)
|
|
3.8
|
|
16.8
|
|
8.0
|
|
11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
12M21
|
|
|
Sales excl. COVID
tests 12M22
|
|
Reported excl. COVID
tests
|
|
Organic excl. COVID
tests
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
12,644
|
|
22,641
|
|
35,285
|
|
2.5
|
|
(1.8)
|
|
(0.3)
|
|
2.5
|
|
6.5
|
|
5.1
|
|
Diagnostics
|
|
3,148
|
|
5,068
|
|
8,216
|
|
11.4
|
|
(1.4)
|
|
3.1
|
|
11.4
|
|
7.1
|
|
8.6
|
|
|
|
|
|
Nutrition
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
4Q21
|
|
|
Sales
4Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
795
|
|
1,022
|
|
1,817
|
|
(14.4)
|
|
(8.3)
|
|
(11.1)
|
|
(14.4)
|
|
1.4
|
|
(5.7)
|
|
Pediatric
|
|
454
|
|
428
|
|
882
|
|
(20.4)
|
|
(8.9)
|
|
(15.2)
|
|
(20.4)
|
|
(1.2)
|
|
(11.8)
|
|
Adult
|
|
341
|
|
594
|
|
935
|
|
(4.8)
|
|
(7.9)
|
|
(6.8)
|
|
(4.8)
|
|
3.4
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
12M21
|
|
|
Sales
12M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
2,919
|
|
4,540
|
|
7,459
|
|
(17.9)
|
|
(4.2)
|
|
(10.1)
|
|
(17.9)
|
|
2.5
|
|
(6.2)
|
|
Pediatric
|
|
1,562
|
|
1,919
|
|
3,481
|
|
(28.7)
|
|
(8.9)
|
|
(19.0)
|
|
(28.7)
|
|
(3.9)
|
|
(16.6)
|
|
Adult
|
|
1,357
|
|
2,621
|
|
3,978
|
|
(0.5)
|
|
(0.4)
|
|
(0.4)
|
|
(0.5)
|
|
7.6
|
|
4.8
|
Worldwide Nutrition sales decreased 11.1 percent on a reported
basis and 5.7 percent on an organic basis in the fourth quarter.
Total worldwide Nutrition and Pediatric Nutrition sales were
negatively impacted as a result of manufacturing disruptions during
2022 of certain infant formula products3 at Abbott's
Sturgis, Michigan, facility. The
manufacturing facility has subsequently restarted production.
In Adult Nutrition, global sales decreased 6.8 percent on a
reported basis and increased 0.5 percent on an organic basis in the
fourth quarter, led by Ensure®, Abbott's market-leading
complete and balanced nutrition brand.
|
Diagnostics
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
4Q21
|
|
|
Sales
4Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
1,695
|
|
1,610
|
|
3,305
|
|
(29.0)
|
|
(22.8)
|
|
(26.1)
|
|
(29.0)
|
|
(12.5)
|
|
(21.3)
|
|
Core
Laboratory
|
|
301
|
|
963
|
|
1,264
|
|
0.2
|
|
(8.1)
|
|
(6.3)
|
|
0.2
|
|
3.5
|
|
2.8
|
|
Molecular
|
|
62
|
|
118
|
|
180
|
|
(54.2)
|
|
(43.9)
|
|
(47.9)
|
|
(54.2)
|
|
(38.6)
|
|
(44.7)
|
|
Point of
Care
|
|
88
|
|
43
|
|
131
|
|
(7.6)
|
|
7.0
|
|
(3.3)
|
|
(7.6)
|
|
14.4
|
|
(1.2)
|
|
Rapid
Diagnostics
|
|
1,244
|
|
486
|
|
1,730
|
|
(33.0)
|
|
(38.2)
|
|
(34.5)
|
|
(33.0)
|
|
(28.3)
|
|
(31.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
12M21
|
|
|
Sales
12M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
8,646
|
|
7,938
|
|
16,584
|
|
21.3
|
|
(6.8)
|
|
6.0
|
|
21.3
|
|
1.3
|
|
10.4
|
|
Core
Laboratory
|
|
1,137
|
|
3,751
|
|
4,888
|
|
(0.7)
|
|
(5.8)
|
|
(4.7)
|
|
(0.7)
|
|
2.7
|
|
1.9
|
|
Molecular
|
|
370
|
|
625
|
|
995
|
|
(34.6)
|
|
(27.4)
|
|
(30.3)
|
|
(34.6)
|
|
(22.6)
|
|
(27.4)
|
|
Point of
Care
|
|
372
|
|
153
|
|
525
|
|
(3.2)
|
|
0.8
|
|
(2.1)
|
|
(3.2)
|
|
6.0
|
|
(0.6)
|
|
Rapid
Diagnostics
|
|
6,767
|
|
3,409
|
|
10,176
|
|
34.4
|
|
(3.1)
|
|
19.0
|
|
34.4
|
|
5.4
|
|
22.5
|
As expected, Diagnostics sales in the fourth quarter were
negatively impacted by year-over-year declines in COVID-19
testing-related sales. Worldwide COVID-19 testing-related sales
were $1.069 billion in the fourth
quarter of 2022 compared to $2.319
billion in the fourth quarter of the prior year.
The following tables summarize sales excluding COVID-19
testing-related sales and the change in reported and organic sales
excluding COVID-19 testing-related sales in 2022 versus the prior
year2:
|
|
|
|
|
|
|
|
% Change vs.
4Q21
|
|
|
Sales excl. COVID
tests 4Q22
|
|
Reported excl. COVID
tests
|
|
Organic excl. COVID
tests
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
919
|
|
1,317
|
|
2,236
|
|
16.8
|
|
(3.6)
|
|
3.8
|
|
16.8
|
|
8.0
|
|
11.2
|
|
Core
Laboratory
|
|
298
|
|
956
|
|
1,254
|
|
1.5
|
|
(5.3)
|
|
(3.8)
|
|
1.5
|
|
6.8
|
|
5.6
|
|
Molecular
|
|
45
|
|
98
|
|
143
|
|
(0.2)
|
|
(8.3)
|
|
(5.9)
|
|
(0.2)
|
|
(0.4)
|
|
(0.3)
|
|
Point of
Care
|
|
88
|
|
43
|
|
131
|
|
(7.6)
|
|
7.0
|
|
(3.3)
|
|
(7.6)
|
|
14.4
|
|
(1.2)
|
|
Rapid
Diagnostics
|
|
488
|
|
220
|
|
708
|
|
38.3
|
|
4.6
|
|
25.7
|
|
38.3
|
|
16.8
|
|
30.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
12M21
|
|
|
Sales excl. COVID
tests 12M22
|
|
Reported excl. COVID
tests
|
|
Organic excl. COVID
tests
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
3,148
|
|
5,068
|
|
8,216
|
|
11.4
|
|
(1.4)
|
|
3.1
|
|
11.4
|
|
7.1
|
|
8.6
|
|
Core
Laboratory
|
|
1,121
|
|
3,705
|
|
4,826
|
|
1.3
|
|
(2.9)
|
|
(2.0)
|
|
1.3
|
|
5.8
|
|
4.8
|
|
Molecular
|
|
180
|
|
404
|
|
584
|
|
11.4
|
|
8.0
|
|
9.0
|
|
11.4
|
|
14.8
|
|
13.8
|
|
Point of
Care
|
|
372
|
|
153
|
|
525
|
|
(3.2)
|
|
0.8
|
|
(2.1)
|
|
(3.2)
|
|
6.0
|
|
(0.6)
|
|
Rapid
Diagnostics
|
|
1,475
|
|
806
|
|
2,281
|
|
25.6
|
|
1.3
|
|
15.8
|
|
25.6
|
|
9.4
|
|
19.1
|
|
|
|
|
|
Established
Pharmaceuticals
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
4Q21
|
|
|
Sales
4Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
—
|
|
1,216
|
|
1,216
|
|
n/a
|
|
1.0
|
|
1.0
|
|
n/a
|
|
7.9
|
|
7.9
|
|
Key Emerging
Markets
|
|
—
|
|
902
|
|
902
|
|
n/a
|
|
3.9
|
|
3.9
|
|
n/a
|
|
10.3
|
|
10.3
|
|
Other
|
|
—
|
|
314
|
|
314
|
|
n/a
|
|
(6.5)
|
|
(6.5)
|
|
n/a
|
|
1.9
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
12M21
|
|
|
Sales
12M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
—
|
|
4,912
|
|
4,912
|
|
n/a
|
|
4.1
|
|
4.1
|
|
n/a
|
|
10.6
|
|
10.6
|
|
Key Emerging
Markets
|
|
—
|
|
3,728
|
|
3,728
|
|
n/a
|
|
5.4
|
|
5.4
|
|
n/a
|
|
11.8
|
|
11.8
|
|
Other
|
|
—
|
|
1,184
|
|
1,184
|
|
n/a
|
|
0.4
|
|
0.4
|
|
n/a
|
|
7.3
|
|
7.3
|
Established Pharmaceuticals sales increased 1.0 percent on a
reported basis and 7.9 percent on an organic basis in the fourth
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 3.9 percent on a reported basis and 10.3
percent on an organic basis, led by strong growth in several
geographies including India,
China, Brazil and Mexico, and across several therapeutic areas,
including cardiometabolic, women's health and central nervous
system/pain management.
|
Medical
Devices
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
4Q21
|
|
|
Sales
4Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
1,726
|
|
2,024
|
|
3,750
|
|
12.2
|
|
(8.4)
|
|
—
|
|
12.2
|
|
4.1
|
|
7.4
|
|
Rhythm
Management
|
|
254
|
|
260
|
|
514
|
|
5.2
|
|
(13.3)
|
|
(5.0)
|
|
5.2
|
|
(0.5)
|
|
2.1
|
|
Electrophysiology
|
|
242
|
|
245
|
|
487
|
|
22.7
|
|
(19.8)
|
|
(3.1)
|
|
22.7
|
|
(6.6)
|
|
4.9
|
|
Heart
Failure
|
|
171
|
|
59
|
|
230
|
|
0.1
|
|
(13.9)
|
|
(3.9)
|
|
0.1
|
|
(4.5)
|
|
(1.2)
|
|
Vascular
|
|
214
|
|
391
|
|
605
|
|
(7.5)
|
|
(12.5)
|
|
(10.8)
|
|
(7.5)
|
|
(1.4)
|
|
(3.5)
|
|
Structural
Heart
|
|
214
|
|
227
|
|
441
|
|
10.9
|
|
0.4
|
|
5.2
|
|
10.9
|
|
15.7
|
|
13.5
|
|
Neuromodulation
|
|
163
|
|
39
|
|
202
|
|
3.7
|
|
(3.1)
|
|
2.3
|
|
3.7
|
|
11.7
|
|
5.3
|
|
Diabetes
Care
|
|
468
|
|
803
|
|
1,271
|
|
34.9
|
|
(2.5)
|
|
8.6
|
|
34.9
|
|
9.8
|
|
17.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
12M21
|
|
|
Sales
12M22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
|
|
6,566
|
|
8,121
|
|
14,687
|
|
10.9
|
|
(3.8)
|
|
2.2
|
|
10.9
|
|
6.2
|
|
8.1
|
|
Rhythm
Management
|
|
1,029
|
|
1,090
|
|
2,119
|
|
1.1
|
|
(7.7)
|
|
(3.6)
|
|
1.1
|
|
1.9
|
|
1.5
|
|
Electrophysiology
|
|
909
|
|
1,018
|
|
1,927
|
|
17.0
|
|
(9.9)
|
|
1.1
|
|
17.0
|
|
0.7
|
|
7.3
|
|
Heart
Failure
|
|
694
|
|
226
|
|
920
|
|
6.2
|
|
(4.0)
|
|
3.5
|
|
6.2
|
|
5.2
|
|
5.9
|
|
Vascular
|
|
864
|
|
1,619
|
|
2,483
|
|
(5.6)
|
|
(6.9)
|
|
(6.4)
|
|
(5.6)
|
|
1.5
|
|
(1.0)
|
|
Structural
Heart
|
|
818
|
|
894
|
|
1,712
|
|
12.0
|
|
1.6
|
|
6.3
|
|
12.0
|
|
13.8
|
|
13.0
|
|
Neuromodulation
|
|
619
|
|
151
|
|
770
|
|
0.3
|
|
(8.1)
|
|
(1.4)
|
|
0.3
|
|
2.9
|
|
0.9
|
|
Diabetes
Care
|
|
1,633
|
|
3,123
|
|
4,756
|
|
34.8
|
|
0.2
|
|
9.9
|
|
34.8
|
|
10.6
|
|
17.4
|
Worldwide Medical Devices sales were flat on a reported basis
and increased 7.4 percent on an organic basis in the fourth
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, including Electrophysiology and Diabetes Care.
In Diabetes Care, FreeStyle Libre sales were approximately
$1.1 billion in the quarter,
including U.S. growth of more than 40 percent.
In 2022, Abbott continued to strengthen its Medical Devices
portfolio with several recent pipeline advancements, including U.S.
FDA approvals of:
- Navitor, Abbott's latest-generation transcatheter aortic valve
implantation (TAVI) system, used for the treatment of severe aortic
stenosis.
- Eterna, Abbott's rechargeable spinal cord stimulator used for
treating chronic pain.
- Aveir™ leadless pacemaker, used for treating patients with
slow heart rhythms.
- An expanded indication of use for CardioMEMS™ HF remote
monitoring system, which detects early warning signs of worsening
heart failure.
- U.S. FDA clearance of the FreeStyle Libre 3 system, which
provides continuous glucose readings and unsurpassed 14-day
accuracy7 in the world's smallest and
thinnest7 wearable sensor.
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2023 diluted earnings per share from
continuing operations under GAAP of $3.05 to $3.25.
Abbott forecasts specified items for the full-year 2023 of
$1.25 per share primarily related to
intangible amortization, restructuring and cost reduction
initiatives and other net expenses. Excluding specified items,
projected adjusted diluted earnings per share from continuing
operations would be $4.30 to
$4.50 for the full-year 2023.
ABBOTT DECLARES 396TH CONSECUTIVE QUARTERLY
DIVIDEND
On Dec. 9, 2022, the board of directors of Abbott declared
the company's quarterly dividend of $0.51 per share. Abbott's cash dividend is
payable Feb. 15, 2023, to
shareholders of record at the close of business on Jan. 13, 2023.
Abbott has increased its dividend payout for 51 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 115,000 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 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 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
|
In the fourth quarter
of 2022, COVID-19 testing-related sales were $1.069 billion. In the
fourth quarter of 2021, total worldwide sales were $11.468 billion,
which included U.S. sales of $4.855 billion and International sales
of $6.613 billion. In the fourth quarter of 2021, COVID-19
testing-related sales were $2.319 billion.
|
|
2
|
For the full-year 2022,
COVID-19 testing-related sales were $8.368 billion. In 2021, total
worldwide sales were $43.075 billion, which included U.S. sales of
$16.642 billion and International sales of $26.433 billion. For the
full-year 2021, COVID-19 testing-related sales were $7.679 billion.
Diagnostic sales and COVID-19 testing-related sales in 2022 and
2021 are summarized below:
|
|
|
Sales
4Q22
|
|
|
COVID Tests Sales
4Q22
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
Diagnostics
|
|
1,695
|
|
1,610
|
|
3,305
|
|
|
776
|
|
293
|
|
1,069
|
|
Core
Laboratory
|
|
301
|
|
963
|
|
1,264
|
|
|
3
|
|
7
|
|
10
|
|
Molecular
|
|
62
|
|
118
|
|
180
|
|
|
17
|
|
20
|
|
37
|
|
Rapid
Diagnostics
|
|
1,244
|
|
486
|
|
1,730
|
|
|
756
|
|
266
|
|
1,022
|
|
|
Sales
4Q21
|
|
|
COVID Tests Sales
4Q21
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
Diagnostics
|
|
2,386
|
|
2,085
|
|
4,471
|
|
|
1,600
|
|
719
|
|
2,319
|
|
Core
Laboratory
|
|
300
|
|
1,048
|
|
1,348
|
|
|
7
|
|
39
|
|
46
|
|
Molecular
|
|
135
|
|
210
|
|
345
|
|
|
89
|
|
103
|
|
192
|
|
Rapid
Diagnostics
|
|
1,856
|
|
787
|
|
2,643
|
|
|
1,504
|
|
577
|
|
2,081
|
|
|
Sales
12M22
|
|
|
COVID Tests Sales
12M22
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
Diagnostics
|
|
8,646
|
|
7,938
|
|
16,584
|
|
|
5,498
|
|
2,870
|
|
8,368
|
|
Core
Laboratory
|
|
1,137
|
|
3,751
|
|
4,888
|
|
|
16
|
|
46
|
|
62
|
|
Molecular
|
|
370
|
|
625
|
|
995
|
|
|
190
|
|
221
|
|
411
|
|
Rapid
Diagnostics
|
|
6,767
|
|
3,409
|
|
10,176
|
|
|
5,292
|
|
2,603
|
|
7,895
|
|
|
Sales
12M21
|
|
|
COVID Tests Sales
12M21
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
Total
Diagnostics
|
|
7,129
|
|
8,515
|
|
15,644
|
|
|
4,302
|
|
3,377
|
|
7,679
|
|
Core
Laboratory
|
|
1,145
|
|
3,983
|
|
5,128
|
|
|
37
|
|
167
|
|
204
|
|
Molecular
|
|
566
|
|
861
|
|
1,427
|
|
|
405
|
|
487
|
|
892
|
|
Rapid
Diagnostics
|
|
5,034
|
|
3,519
|
|
8,553
|
|
|
3,860
|
|
2,723
|
|
6,583
|
|
|
|
3
|
U.S. sales of certain
infant formula products impacted by the 2022 manufacturing
disruptions were $202 million in 4Q22 and $329 million in 4Q21 and
$479 million for the full-year 2022 and $1.229 billion for the
full-year 2021. Excluding COVID-19 testing-related sales and U.S.
infant formula sales that were impacted by manufacturing
disruptions, fourth-quarter sales were flat on a reported basis and
increased 7.1 percent on an organic basis.
|
|
4
|
Abbott has not provided
the GAAP financial measure for organic sales growth, excluding
COVID-19 testing-related sales, on a forward-looking basis because
the company is unable to predict the impact of foreign exchange due
to the unpredictability of future changes in foreign exchange
rates, which could significantly impact reported sales
growth.
|
|
5
|
Abbott. Eterna SCS IPG
Size Comparison Memo (MAT-2210151); 2022.
|
|
6
|
Total Abbott sales
include Other Sales of approximately $3 million in 4Q22 and
approximately $11 million in 12M22.
|
|
7
|
Data on file, Abbott
Diabetes Care. Comparison based on publicly available
information.
|
|
Abbott Laboratories and
Subsidiaries
Condensed Consolidated
Statement of Earnings
Fourth Quarter Ended
December 31, 2022 and 2021
(in millions, except
per share data)
(unaudited)
|
|
|
4Q22
|
|
4Q21
|
|
%
Change
|
|
|
Net Sales
|
$10,091
|
|
$11,468
|
|
(12.0)
|
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization expense
|
4,593
|
|
4,766
|
|
(3.6)
|
|
|
Amortization of
intangible assets
|
496
|
|
514
|
|
(3.7)
|
|
|
Research and
development
|
725
|
|
762
|
|
(4.8)
|
|
|
Selling, general, and
administrative
|
2,973
|
|
3,048
|
|
(2.5)
|
|
|
Total Operating Cost
and Expenses
|
8,787
|
|
9,090
|
|
(3.3)
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
1,304
|
|
2,378
|
|
(45.2)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
66
|
|
120
|
|
(45.2)
|
|
|
Net foreign exchange
(gain) loss
|
(14)
|
|
(6)
|
|
n/m
|
|
|
Other (income)
expense, net
|
(68)
|
|
(63)
|
|
8.1
|
|
|
Earnings before
taxes
|
1,320
|
|
2,327
|
|
(43.3)
|
|
|
Taxes on
earnings
|
287
|
|
338
|
|
(15.2)
|
1)
|
|
|
|
|
|
|
|
|
Net
Earnings
|
$1,033
|
|
$1,989
|
|
(48.1)
|
|
|
|
|
|
|
|
|
|
Net Earnings excluding
Specified Items, as described below
|
$1,811
|
|
$2,366
|
|
(23.4)
|
2)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share
|
$0.59
|
|
$1.11
|
|
(46.8)
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share,
excluding Specified
Items, as described below
|
$1.03
|
|
$1.32
|
|
(22.0)
|
2)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
Plus Dilutive Common
Stock Options
|
1,754
|
|
1,782
|
|
|
|
|
|
NOTES:
|
|
See table titled
"Non-GAAP Reconciliation of Financial Information" for additional
details regarding specified items.
|
|
n/m = Percent change is
not meaningful.
|
|
See footnotes on the
following below.
|
|
|
|
1)
|
2021 Taxes on Earnings
includes the recognition of approximately $40 million of net tax
benefits as a result of the resolution of various tax positions
related to prior years and approximately $45 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 $778 million, or $0.44 per share,
for intangible amortization, charges related to restructuring and
cost reduction initiatives, expenses associated with acquisitions,
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 $377
million, or $0.21 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 of 2021
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
Twelve Months Ended
December 31, 2022 and 2021
(in millions, except
per share data)
(unaudited)
|
|
|
12M22
|
|
12M21
|
|
%
Change
|
|
|
Net Sales
|
$43,653
|
|
$43,075
|
|
1.3
|
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization expense
|
19,142
|
|
18,537
|
|
3.3
|
|
|
Amortization of
intangible assets
|
2,013
|
|
2,047
|
|
(1.7)
|
|
|
Research and
development
|
2,888
|
|
2,742
|
|
5.3
|
|
|
Selling, general, and
administrative
|
11,248
|
|
11,324
|
|
(0.7)
|
|
|
Total Operating Cost
and Expenses
|
35,291
|
|
34,650
|
|
1.8
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
8,362
|
|
8,425
|
|
(0.7)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
375
|
|
490
|
|
(23.4)
|
|
|
Net foreign exchange
(gain) loss
|
2
|
|
1
|
|
n/m
|
|
|
Other (income)
expense, net
|
(321)
|
|
(277)
|
|
16.0
|
|
|
Earnings before
taxes
|
8,306
|
|
8,211
|
|
1.2
|
|
|
Taxes on
earnings
|
1,373
|
|
1,140
|
|
20.5
|
1)
|
|
|
|
|
|
|
|
|
Net
Earnings
|
$6,933
|
|
$7,071
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
Net Earnings excluding
Specified Items, as described below
|
$9,466
|
|
$9,367
|
|
1.1
|
2)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share
|
$3.91
|
|
$3.94
|
|
(0.8)
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share,
excluding Specified
Items, as described below
|
$5.34
|
|
$5.21
|
|
2.5
|
2)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
Plus Dilutive Common
Stock Options
|
1,764
|
|
1,789
|
|
|
|
|
|
NOTES:
|
|
See table titled
"Non-GAAP Reconciliation of Financial Information" for additional
details regarding specified items.
|
|
n/m = Percent change is
not meaningful.
|
|
See footnotes on the
following 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 $43 million in excess tax
benefits associated with share-based compensation.
|
|
2021 Taxes on Earnings
includes the recognition of approximately $55 million of net tax
benefits as a result of the resolution of various tax positions
related to prior years and approximately $145 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 $2.533 billion, or $1.43 per
share, for intangible amortization, charges related to a voluntary
recall and restructuring actions, 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 $2.296
billion, or $1.27 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
Fourth Quarter Ended
December 31, 2022 and 2021
(in millions, except
per share data)
(unaudited)
|
|
|
4Q22
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$
496
|
|
$
(496)
|
|
$
—
|
|
Gross
Margin
|
5,002
|
|
612
|
|
5,614
|
|
R&D
|
725
|
|
(71)
|
|
654
|
|
SG&A
|
2,973
|
|
(144)
|
|
2,829
|
|
Other (income)
expense, net
|
(68)
|
|
(24)
|
|
(92)
|
|
Earnings before
taxes
|
1,320
|
|
851
|
|
2,171
|
|
Taxes on
Earnings
|
287
|
|
73
|
|
360
|
|
Net
Earnings
|
1,033
|
|
778
|
|
1,811
|
|
Diluted Earnings per
Share
|
$
0.59
|
|
$
0.44
|
|
$
1.03
|
|
Specified items reflect
intangible amortization expense of $496 million and other net
expenses of $355 million associated with restructuring actions,
costs associated with acquisitions and other expenses. See table
titled "Non-GAAP Reconciliation of Financial Information" for
additional details regarding specified items.
|
|
|
4Q21
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$
514
|
|
$
(514)
|
|
$
—
|
|
Gross
Margin
|
6,188
|
|
434
|
|
6,622
|
|
R&D
|
762
|
|
(39)
|
|
723
|
|
SG&A
|
3,048
|
|
(43)
|
|
3,005
|
|
Other (income)
expense, net
|
(63)
|
|
(5)
|
|
(68)
|
|
Earnings before
taxes
|
2,327
|
|
521
|
|
2,848
|
|
Taxes on
Earnings
|
338
|
|
144
|
|
482
|
|
Net
Earnings
|
1,989
|
|
377
|
|
2,366
|
|
Diluted Earnings per
Share
|
$
1.11
|
|
$
0.21
|
|
$
1.32
|
|
Specified items reflect
intangible amortization expense of $514 million and other net
expenses of $7 million that includes costs associated with
acquisitions and other expenses, partially offset by a change in
estimate to the restructuring actions recognized in the second
quarter of 2021. See tables titled "A reconciliation of the
fourth-quarter tax rates for 2022 and 2021" for additional
details regarding specified items.
|
|
Abbott Laboratories and
Subsidiaries
Non-GAAP Reconciliation
of Financial Information
Twelve Months Ended
December 31, 2022 and 2021
(in millions, except
per share data)
(unaudited)
|
|
|
12M22
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$
2,013
|
|
$ (2,013)
|
|
$
—
|
|
Gross
Margin
|
22,498
|
|
2,351
|
|
24,849
|
|
R&D
|
2,888
|
|
(282)
|
|
2,606
|
|
SG&A
|
11,248
|
|
(236)
|
|
11,012
|
|
Other (income)
expense, net
|
(321)
|
|
(55)
|
|
(376)
|
|
Earnings before
taxes
|
8,306
|
|
2,924
|
|
11,230
|
|
Taxes on
Earnings
|
1,373
|
|
391
|
|
1,764
|
|
Net
Earnings
|
6,933
|
|
2,533
|
|
9,466
|
|
Diluted Earnings per
Share
|
$
3.91
|
|
$
1.43
|
|
$
5.34
|
|
Specified items reflect
intangible amortization expense of $2.013 billion and other net
expenses of $911 million that includes charges for the impairment
of R&D intangible assets, costs associated with a product
recall and restructuring actions, acquisition-related costs, and
other net expenses. See tables titled "Details of Specified Items"
for additional details regarding specified items.
|
|
12M21
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
|
|
|
|
|
|
Intangible
Amortization
|
$
2,047
|
|
$ (2,047)
|
|
$
—
|
|
Gross
Margin
|
22,491
|
|
2,476
|
|
24,967
|
|
R&D
|
2,742
|
|
(106)
|
|
2,636
|
|
SG&A
|
11,324
|
|
(317)
|
|
11,007
|
|
Other (income)
expense, net
|
(277)
|
|
25
|
|
(252)
|
|
Earnings before
taxes
|
8,211
|
|
2,874
|
|
11,085
|
|
Taxes on
Earnings
|
1,140
|
|
578
|
|
1,718
|
|
Net
Earnings
|
7,071
|
|
2,296
|
|
9,367
|
|
Diluted Earnings per
Share
|
$
3.94
|
|
$
1.27
|
|
$
5.21
|
|
Specified items reflect
intangible amortization expense of $2.047 billion and other net
expenses of $827 million, primarily associated with restructuring
actions, certain litigation, acquisitions and other expenses. See
tables titled "Details of Specified Items" for additional details
regarding specified items.
|
|
A reconciliation of the
fourth-quarter tax rates for 2022 and 2021 is shown
below:
|
|
|
|
|
4Q22
|
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
|
As reported
(GAAP)
|
$
1,320
|
|
$
287
|
|
21.7 %
|
|
|
Specified
items
|
851
|
|
73
|
|
|
|
|
Excluding specified
items
|
$
2,171
|
|
$
360
|
|
16.5 %
|
|
|
|
|
|
|
|
|
|
4Q21
|
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
|
As reported
(GAAP)
|
$
2,327
|
|
$
338
|
|
14.5 %
|
1)
|
|
Specified
items
|
521
|
|
144
|
|
|
|
|
Excluding specified
items
|
$
2,848
|
|
$
482
|
|
16.9 %
|
|
|
|
|
1)
|
2021 Taxes on Earnings
includes the recognition of approximately $40 million of net tax
benefits as a result of the resolution of various tax positions
related to prior years and approximately $45 million in excess tax
benefits associated with share-based compensation.
|
|
A reconciliation of the
year-to-date tax rates for 2022 and 2021 is shown below:
|
|
|
12M22
|
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
|
As reported
(GAAP)
|
$
8,306
|
|
$
1,373
|
|
16.5 %
|
2)
|
|
Specified
items
|
2,924
|
|
391
|
|
|
|
|
Excluding specified
items
|
$ 11,230
|
|
$
1,764
|
|
15.7 %
|
|
|
12M21
|
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
|
As reported
(GAAP)
|
$
8,211
|
|
$
1,140
|
|
13.9 %
|
3)
|
|
Specified
items
|
2,874
|
|
578
|
|
|
|
|
Excluding specified
items
|
$ 11,085
|
|
$
1,718
|
|
15.5 %
|
|
|
|
|
2)
|
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 $43 million in excess tax
benefits associated with share-based compensation.
|
|
3)
|
2021 Taxes on Earnings
includes the recognition of approximately $55 million of net tax
benefits as a result of the resolution of various tax positions
related to prior years and approximately $145 million in excess tax
benefits associated with share-based compensation.
|
|
Abbott Laboratories and
Subsidiaries
Details of Specified
Items
Fourth Quarter Ended
December 31, 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
|
|
$
23
|
|
$
87
|
|
$
496
|
|
$
6
|
|
$
612
|
|
R&D
|
|
(6)
|
|
(34)
|
|
—
|
|
(31)
|
|
(71)
|
|
SG&A
|
|
(7)
|
|
(135)
|
|
—
|
|
(2)
|
|
(144)
|
|
Other (income) expense,
net
|
|
3
|
|
—
|
|
—
|
|
(27)
|
|
(24)
|
|
Earnings before
taxes
|
|
$
33
|
|
$
256
|
|
$
496
|
|
$
66
|
|
851
|
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
|
73
|
|
Net Earnings
|
|
|
|
|
|
|
|
|
|
$
778
|
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
|
$
0.44
|
|
The table above
provides additional details regarding the specified items described
on table titled "Condensed Consolidated Statement of
Earnings."
|
|
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
incremental costs to comply with the European Union's Medical
Device Regulations (MDR) and In Vitro Diagnostics Medical Device
Regulations (IVDR) requirements for previously approved products as
well as the impairment of an equity investment.
|
|
d)
|
Reflects the net tax
benefit associated with the specified items.
|
|
Abbott Laboratories and
Subsidiaries
Details of Specified
Items
Fourth Quarter Ended
December 31, 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
|
|
$
26
|
|
$
(110)
|
|
$
514
|
|
$
4
|
|
$
434
|
|
R&D
|
|
(6)
|
|
(8)
|
|
—
|
|
(25)
|
|
(39)
|
|
SG&A
|
|
(12)
|
|
(23)
|
|
—
|
|
(8)
|
|
(43)
|
|
Other (income) expense,
net
|
|
(2)
|
|
—
|
|
—
|
|
(3)
|
|
(5)
|
|
Earnings before
taxes
|
|
$
46
|
|
$
(79)
|
|
$
514
|
|
$
40
|
|
521
|
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
|
144
|
|
Net Earnings
|
|
|
|
|
|
|
|
|
|
$
377
|
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
|
$
0.21
|
|
The table above
provides additional details regarding the specified items described
on titled "Condensed Consolidated Statement of
Earnings."
|
|
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
requirements 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
Twelve Months Ended
December 31, 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
|
$
79
|
|
$
86
|
|
$
2,013
|
|
$
173
|
|
$
2,351
|
|
R&D
|
(16)
|
|
(38)
|
|
—
|
|
(228)
|
|
(282)
|
|
SG&A
|
(38)
|
|
(140)
|
|
—
|
|
(58)
|
|
(236)
|
|
Other (income) expense,
net
|
(12)
|
|
—
|
|
—
|
|
(43)
|
|
(55)
|
|
Earnings before
taxes
|
$
145
|
|
$
264
|
|
$
2,013
|
|
$
502
|
|
2,924
|
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
391
|
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
2,533
|
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
1.43
|
|
The table above
provides additional details regarding the specified items described
on table titled "Condensed Consolidated Statement of
Earnings."
|
|
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 impairments of R&D
intangible assets and an equity investment 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
Twelve Months Ended
December 31, 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
|
$
82
|
|
$
323
|
|
$
2,047
|
|
$
24
|
|
$
2,476
|
|
R&D
|
(15)
|
|
(7)
|
|
—
|
|
(84)
|
|
(106)
|
|
SG&A
|
(55)
|
|
(45)
|
|
—
|
|
(217)
|
|
(317)
|
|
Other (income) expense,
net
|
1
|
|
1
|
|
—
|
|
23
|
|
25
|
|
Earnings before
taxes
|
$
151
|
|
$
374
|
|
$
2,047
|
|
$
302
|
|
2,874
|
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
578
|
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
2,296
|
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
1.27
|
|
The table above
provides additional details regarding the specified items described
on table titled "Condensed Consolidated Statement of
Earnings."
|
|
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-fourth-quarter-and-full-year-2022-results-issues-2023-financial-outlook-301730346.html
SOURCE Abbott