- Sales of $10.0 billion driven
by strong underlying base business performance
- Reported sales decreased 11.4 percent due to anticipated
decline in COVID-19 testing-related sales versus prior
year
- Organic sales growth for underlying base business of 11.5
percent, led by Medical Devices, Established Pharmaceuticals and
Nutrition
- Continues to strengthen portfolio with new product approvals
and expanded reimbursement coverage
ABBOTT
PARK, Ill., July 20,
2023 /PRNewswire/ -- Abbott (NYSE: ABT) today
announced financial results for the second quarter ended
June 30, 2023.
- Second-quarter GAAP diluted EPS of $0.78 and adjusted diluted EPS of $1.08, which excludes specified items.
- Projected full-year 2023 diluted EPS on a GAAP basis of
$3.02 to $3.22.
- Projected full-year adjusted EPS of $4.30 to $4.50
remains unchanged but reflects an increased outlook for the
underlying base business offset by a lower forecasted earnings
contribution from COVID-19 testing-related sales.
- Abbott now projects full-year 2023 organic sales growth,
excluding COVID-19 testing-related sales1, to be in the
low double-digits2 and COVID-19 testing-related sales of
approximately $1.3 billion.
- In May, Abbott received U.S. Food and Drug Administration (FDA)
approval of its TactiFlex® Ablation Catheter,
Sensor Enabled™, the world's first ablation catheter with a unique
flexible electrode tip and contact force sensing technology to
treat patients with atrial fibrillation (AFib).
- In June, Abbott announced its FreeStyle Libre® 2
system is the first and only continuous glucose monitoring (CGM)
system to receive expanded national reimbursement in France to now include all people with diabetes
who use insulin.
- In June, Abbott received U.S. FDA approval of its AVEIR™ dual
chamber (DR) leadless pacemaker system, the world's first dual
chamber leadless pacing system that treats people with abnormal
heart rhythms.
"We're achieving strong growth in our underlying base business,"
said Robert B. Ford, chairman and
chief executive officer, Abbott. "We expect our highly productive
pipeline to sustain the momentum we're building this year and
position us well for growth in the future."
SECOND-QUARTER BUSINESS OVERVIEW
Management
believes that measuring sales growth rates on an organic basis,
which excludes the impact of foreign exchange, the impact of
exiting the pediatric nutrition business in China, and the impact of the acquisition of
Cardiovascular Systems, Inc. (CSI) is an appropriate way for
investors to best understand the core underlying performance of the
business. 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 underlying base
business performance as the COVID-19 pandemic has shifted to an
endemic state, resulting in significantly lower demand for COVID-19
tests.
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.
Second Quarter 2023
Results (2Q23)
|
|
Sales 2Q23 ($ in
millions)
|
Total
Company
|
|
Nutrition
|
|
Diagnostics
|
|
Established
Pharmaceuticals
|
|
Medical
Devices
|
U.S.
|
3,758
|
|
881
|
|
961
|
|
—
|
|
1,913
|
International
|
6,220
|
|
1,195
|
|
1,356
|
|
1,287
|
|
2,382
|
Total
reported
|
9,978
|
|
2,076
|
|
2,317
|
|
1,287
|
|
4,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
2Q22
|
|
|
|
|
|
|
|
|
|
U.S.
|
(23.2)
|
|
15.7
|
|
(60.7)
|
|
n/a
|
|
13.3
|
International
|
(2.3)
|
|
0.3
|
|
(26.8)
|
|
5.2
|
|
13.6
|
Total
reported
|
(11.4)
|
|
6.3
|
|
(46.0)
|
|
5.2
|
|
13.5
|
Impact of foreign
exchange
|
(2.5)
|
|
(3.0)
|
|
(1.3)
|
|
(7.4)
|
|
(1.9)
|
Impact of CSI
acquisition
|
0.4
|
|
—
|
|
—
|
|
—
|
|
1.2
|
Impact of business
exit
|
(0.1)
|
|
(0.6)
|
|
—
|
|
—
|
|
—
|
Organic
|
(9.2)
|
|
9.9
|
|
(44.7)
|
|
12.6
|
|
14.2
|
Impact of COVID-19
testing sales (3)
|
(20.7)
|
|
—
|
|
(51.8)
|
|
—
|
|
—
|
Organic (excluding
COVID-19 tests)
|
11.5
|
|
9.9
|
|
7.1
|
|
12.6
|
|
14.2
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
10.9
|
|
15.7
|
|
5.2
|
|
n/a
|
|
11.0
|
International
|
11.9
|
|
6.1
|
|
8.2
|
|
12.6
|
|
16.8
|
|
|
First Half 2023
Results (1H23)
|
|
Sales 1H23 ($ in
millions)
|
Total
Company
|
|
Nutrition
|
|
Diagnostics
|
|
Established
Pharmaceuticals
|
|
Medical
Devices
|
U.S.
|
7,686
|
|
1,693
|
|
2,296
|
|
—
|
|
3,691
|
International
|
12,039
|
|
2,350
|
|
2,709
|
|
2,476
|
|
4,504
|
Total
reported
|
19,725
|
|
4,043
|
|
5,005
|
|
2,476
|
|
8,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
1H22
|
|
|
|
|
|
|
|
|
|
U.S.
|
(21.8)
|
|
17.7
|
|
(55.4)
|
|
n/a
|
|
14.2
|
International
|
(9.6)
|
|
(2.4)
|
|
(38.4)
|
|
4.4
|
|
8.6
|
Total
reported
|
(14.8)
|
|
5.1
|
|
(47.6)
|
|
4.4
|
|
11.0
|
Impact of foreign
exchange
|
(2.9)
|
|
(3.4)
|
|
(1.6)
|
|
(7.5)
|
|
(2.9)
|
Impact of CSI
acquisition
|
0.2
|
|
—
|
|
—
|
|
—
|
|
0.6
|
Impact of business
exit
|
(0.2)
|
|
(1.6)
|
|
—
|
|
—
|
|
—
|
Organic
|
(11.9)
|
|
10.1
|
|
(46.0)
|
|
11.9
|
|
13.3
|
Impact of COVID-19
testing sales (3)
|
(22.6)
|
|
—
|
|
(51.7)
|
|
—
|
|
—
|
Organic (excluding
COVID-19 tests)
|
10.7
|
|
10.1
|
|
5.7
|
|
11.9
|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
11.7
|
|
17.7
|
|
2.7
|
|
n/a
|
|
12.9
|
International
|
10.2
|
|
5.4
|
|
7.5
|
|
11.9
|
|
13.7
|
See table titled "Non-GAAP Revenue Reconciliation" for a
reconciliation of adjusted historical revenue to reported
revenue.
Nutrition
|
|
Second Quarter 2023
Results (2Q23)
|
|
Sales 2Q23 ($ in
millions)
|
|
|
Total
|
|
Pediatric
|
|
Adult
|
U.S.
|
|
|
881
|
|
507
|
|
374
|
International
|
|
|
1,195
|
|
517
|
|
678
|
Total
reported
|
|
|
2,076
|
|
1,024
|
|
1,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
2Q22
|
|
|
|
|
|
|
|
U.S.
|
|
|
15.7
|
|
22.5
|
|
7.6
|
International
|
|
|
0.3
|
|
1.1
|
|
(0.2)
|
Total
reported
|
|
|
6.3
|
|
10.6
|
|
2.5
|
Impact of foreign
exchange
|
|
|
(3.0)
|
|
(2.3)
|
|
(3.5)
|
Impact of business
exit
|
|
|
(0.6)
|
|
(1.6)
|
|
—
|
Organic
|
|
|
9.9
|
|
14.5
|
|
6.0
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
15.7
|
|
22.5
|
|
7.6
|
International
|
|
|
6.1
|
|
7.5
|
|
5.2
|
Worldwide Nutrition sales increased 6.3 percent on a reported
basis and 9.9 percent on an organic basis in the second quarter.
Refer to table titled "Condensed Consolidated Statement of
Earnings" for a reconciliation of adjusted historical revenue to
reported revenue.
In Pediatric Nutrition, global sales increased 10.6 percent on a
reported basis and 14.5 percent on an organic basis. In the U.S.,
sales growth of 22.5 percent was primarily driven by continued
market share recovery in the infant formula business following a
voluntary recall of certain products last year.
In Adult Nutrition, global sales increased 2.5 percent on a
reported basis and 6.0 percent on an organic basis, which was led
by strong global growth of Ensure®, Abbott's
market-leading complete and balanced nutrition brand.
First Half 2023
Results (1H23)
|
|
Sales 1H23 ($ in
millions)
|
|
|
|
|
Total
|
|
Pediatric
|
|
Adult
|
U.S.
|
|
|
|
|
1,693
|
|
966
|
|
727
|
International
|
|
|
|
|
2,350
|
|
982
|
|
1,368
|
Total
reported
|
|
|
|
|
4,043
|
|
1,948
|
|
2,095
|
|
|
% Change vs.
1H22
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
17.7
|
|
28.6
|
|
5.8
|
International
|
|
|
|
|
(2.4)
|
|
(3.8)
|
|
(1.4)
|
Total
reported
|
|
|
|
|
5.1
|
|
9.9
|
|
1.0
|
Impact of foreign
exchange
|
|
|
|
|
(3.4)
|
|
(2.6)
|
|
(4.1)
|
Impact of business
exit
|
|
|
|
|
(1.6)
|
|
(3.8)
|
|
—
|
Organic
|
|
|
|
|
10.1
|
|
16.3
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
17.7
|
|
28.6
|
|
5.8
|
International
|
|
|
|
|
5.4
|
|
6.4
|
|
4.8
|
|
|
Diagnostics
|
|
Second Quarter 2023
Results (2Q23)
|
|
Sales 2Q23 ($ in
millions)
|
Total
|
|
Core
Laboratory
|
|
Molecular
|
|
Point of
Care
|
|
Rapid
Diagnostics *
|
U.S.
|
961
|
|
311
|
|
43
|
|
99
|
|
508
|
International
|
1,356
|
|
982
|
|
98
|
|
43
|
|
233
|
Total
reported
|
2,317
|
|
1,293
|
|
141
|
|
142
|
|
741
|
|
|
% Change vs.
2Q22
|
|
|
|
|
|
|
|
|
|
U.S.
|
(60.7)
|
|
8.6
|
|
(40.1)
|
|
(2.3)
|
|
(74.4)
|
International
|
(26.8)
|
|
5.1
|
|
(29.9)
|
|
13.1
|
|
(68.5)
|
Total
reported
|
(46.0)
|
|
5.9
|
|
(33.3)
|
|
1.9
|
|
(72.8)
|
Impact of foreign
exchange
|
(1.3)
|
|
(3.6)
|
|
(1.2)
|
|
(0.5)
|
|
(0.5)
|
Organic
|
(44.7)
|
|
9.5
|
|
(32.1)
|
|
2.4
|
|
(72.3)
|
Impact of COVID-19
testing sales (3)
|
(51.8)
|
|
(0.6)
|
|
(30.8)
|
|
—
|
|
(75.6)
|
Organic (excluding
COVID-19 tests)
|
7.1
|
|
10.1
|
|
(1.3)
|
|
2.4
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
5.2
|
|
9.4
|
|
3.4
|
|
(2.3)
|
|
4.0
|
International
|
8.2
|
|
10.4
|
|
(3.1)
|
|
15.2
|
|
2.3
|
As expected, Diagnostics sales growth in the second quarter was
negatively impacted by year-over-year declines in COVID-19
testing-related sales3. Worldwide COVID-19 testing sales
were $263 million in the second
quarter of 2023 compared to $2.324
billion in the second quarter of the prior year.
Excluding COVID-19 testing-related sales, global Diagnostics
sales increased 4.3 percent on a reported basis and 7.1 percent on
an organic basis.
First Half 2023
Results (1H23)
|
|
Sales 1H23 ($ in
millions)
|
Total
|
|
Core
Laboratory
|
|
Molecular
|
|
Point of
Care
|
|
Rapid
Diagnostics *
|
U.S.
|
2,296
|
|
600
|
|
90
|
|
192
|
|
1,414
|
International
|
2,709
|
|
1,875
|
|
198
|
|
84
|
|
552
|
Total
reported
|
5,005
|
|
2,475
|
|
288
|
|
276
|
|
1,966
|
|
|
% Change vs.
1H22
|
|
|
|
|
|
|
|
|
|
U.S.
|
(55.4)
|
|
8.2
|
|
(63.2)
|
|
0.1
|
|
(66.0)
|
International
|
(38.4)
|
|
1.3
|
|
(48.9)
|
|
11.2
|
|
(73.5)
|
Total
reported
|
(47.6)
|
|
2.9
|
|
(54.4)
|
|
3.2
|
|
(68.5)
|
Impact of foreign
exchange
|
(1.6)
|
|
(4.4)
|
|
(1.1)
|
|
(0.8)
|
|
(0.6)
|
Organic
|
(46.0)
|
|
7.3
|
|
(53.3)
|
|
4.0
|
|
(67.9)
|
Impact of COVID-19
testing sales (3)
|
(51.7)
|
|
(1.3)
|
|
(38.8)
|
|
—
|
|
(73.6)
|
Organic (excluding
COVID-19 tests)
|
5.7
|
|
8.6
|
|
(14.5)
|
|
4.0
|
|
5.7
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
2.7
|
|
9.2
|
|
(21.0)
|
|
0.1
|
|
1.5
|
International
|
7.5
|
|
8.5
|
|
(11.6)
|
|
14.0
|
|
12.3
|
|
*The Acelis
Connected Health business was internally transferred from Rapid
Diagnostics to Heart Failure on January 1, 2023. As
a result, $28 million of sales in the second quarter of 2022 and
$57 million in the first half 2022 were moved from Rapid
Diagnostics
to Heart Failure.
|
Established
Pharmaceuticals
|
|
Second Quarter 2023
Results (2Q23)
|
|
Sales 2Q23 ($ in
millions)
|
Total
|
|
Key Emerging
Markets
|
|
Other
|
U.S.
|
—
|
|
—
|
|
—
|
International
|
1,287
|
|
990
|
|
297
|
Total
reported
|
1,287
|
|
990
|
|
297
|
|
|
% Change vs.
2Q22
|
|
|
|
|
|
U.S.
|
n/a
|
|
n/a
|
|
n/a
|
International
|
5.2
|
|
4.6
|
|
7.1
|
Total
reported
|
5.2
|
|
4.6
|
|
7.1
|
Impact of foreign
exchange
|
(7.4)
|
|
(8.4)
|
|
(4.4)
|
Organic
|
12.6
|
|
13.0
|
|
11.5
|
|
|
|
|
|
|
U.S.
|
n/a
|
|
n/a
|
|
n/a
|
International
|
12.6
|
|
13.0
|
|
11.5
|
Established Pharmaceuticals sales increased 5.2 percent on a
reported basis and 12.6 percent on an organic basis in the second
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 4.6 percent on a reported basis and 13.0
percent on an organic basis, led by growth in several geographies
and therapeutic areas, including gastroenterology, women's health,
and central nervous system/pain management.
First Half 2023
Results (1H23)
|
|
Sales 1H23 ($ in
millions)
|
Total
|
|
Key Emerging
Markets
|
|
Other
|
U.S.
|
—
|
|
—
|
|
—
|
International
|
2,476
|
|
1,902
|
|
574
|
Total
reported
|
2,476
|
|
1,902
|
|
574
|
|
|
% Change vs.
1H22
|
|
|
|
|
|
U.S.
|
n/a
|
|
n/a
|
|
n/a
|
International
|
4.4
|
|
2.7
|
|
10.8
|
Total
reported
|
4.4
|
|
2.7
|
|
10.8
|
Impact of foreign
exchange
|
(7.5)
|
|
(8.0)
|
|
(5.5)
|
Organic
|
11.9
|
|
10.7
|
|
16.3
|
|
|
|
|
|
|
U.S.
|
n/a
|
|
n/a
|
|
n/a
|
International
|
11.9
|
|
10.7
|
|
16.3
|
Medical
Devices
|
|
Second Quarter 2023
Results (2Q23)
|
|
Sales 2Q23 ($ in
millions)
|
Total
|
|
Rhythm
Management
|
|
Electro-
physiology
|
|
Heart
Failure *
|
|
Vascular
|
|
Structural
Heart
|
|
Neuro-
modulation
|
|
Diabetes
Care
|
U.S.
|
1,913
|
|
269
|
|
245
|
|
226
|
|
264
|
|
219
|
|
185
|
|
505
|
International
|
2,382
|
|
314
|
|
308
|
|
69
|
|
451
|
|
279
|
|
42
|
|
919
|
Total
reported
|
4,295
|
|
583
|
|
553
|
|
295
|
|
715
|
|
498
|
|
227
|
|
1,424
|
|
|
% Change vs.
2Q22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
13.3
|
|
2.0
|
|
8.8
|
|
8.9
|
|
15.4
|
|
5.9
|
|
17.6
|
|
26.6
|
International
|
13.6
|
|
10.3
|
|
18.7
|
|
11.9
|
|
6.1
|
|
19.8
|
|
5.1
|
|
15.8
|
Total
reported
|
13.5
|
|
6.3
|
|
14.1
|
|
9.6
|
|
9.3
|
|
13.3
|
|
15.1
|
|
19.4
|
Impact of foreign
exchange
|
(1.9)
|
|
(1.9)
|
|
(2.8)
|
|
(0.3)
|
|
(2.3)
|
|
(1.5)
|
|
(1.1)
|
|
(2.0)
|
Impact of CSI
acquisition
|
1.2
|
|
—
|
|
—
|
|
—
|
|
6.6
|
|
—
|
|
—
|
|
—
|
Organic
|
14.2
|
|
8.2
|
|
16.9
|
|
9.9
|
|
5.0
|
|
14.8
|
|
16.2
|
|
21.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
11.0
|
|
2.0
|
|
8.8
|
|
8.9
|
|
(1.9)
|
|
5.9
|
|
17.6
|
|
26.6
|
International
|
16.8
|
|
14.0
|
|
23.9
|
|
13.2
|
|
8.7
|
|
22.6
|
|
10.5
|
|
18.8
|
Worldwide Medical Devices sales increased 13.5 percent on a
reported basis and 14.2 percent on an organic basis in the second
quarter. Sales growth was led by double-digit organic growth in
Diabetes Care, Electrophysiology, Structural Heart and
Neuromodulation. Several recently launched products and new
indications contributed to the strong performance, including
Amplatzer® Amulet®, Navitor®,
TriClip®, and Aveir™.
In Electrophysiology, internationally, sales grew
high-teens on a reported basis and more than 20 percent on an
organic basis, which includes high-teens growth in Europe.
In Diabetes Care, FreeStyle Libre sales were $1.3 billion, which represents sales growth of
22.9 percent on a reported basis and 24.7 percent on an organic
basis.
First Half 2023
Results (1H23)
|
|
Sales 1H23 ($ in
millions)
|
Total
|
|
Rhythm
Management
|
|
Electro-
physiology
|
|
Heart
Failure *
|
|
Vascular
|
|
Structural
Heart
|
|
Neuro-
modulation
|
|
Diabetes
Care
|
U.S.
|
3,691
|
|
529
|
|
483
|
|
444
|
|
482
|
|
429
|
|
340
|
|
984
|
International
|
4,504
|
|
581
|
|
575
|
|
132
|
|
850
|
|
530
|
|
83
|
|
1,753
|
Total
reported
|
8,195
|
|
1,110
|
|
1,058
|
|
576
|
|
1,332
|
|
959
|
|
423
|
|
2,737
|
|
|
% Change vs.
1H22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
14.2
|
|
3.2
|
|
9.4
|
|
10.0
|
|
10.3
|
|
8.1
|
|
13.2
|
|
32.7
|
International
|
8.6
|
|
3.6
|
|
8.7
|
|
14.1
|
|
1.8
|
|
16.8
|
|
9.1
|
|
11.2
|
Total
reported
|
11.0
|
|
3.4
|
|
9.0
|
|
10.9
|
|
4.7
|
|
12.8
|
|
12.4
|
|
18.1
|
Impact of foreign
exchange
|
(2.9)
|
|
(2.8)
|
|
(3.8)
|
|
(0.8)
|
|
(3.1)
|
|
(2.7)
|
|
(1.4)
|
|
(3.1)
|
Impact of CSI
acquisition
|
0.6
|
|
—
|
|
—
|
|
—
|
|
3.4
|
|
—
|
|
—
|
|
—
|
Organic
|
13.3
|
|
6.2
|
|
12.8
|
|
11.7
|
|
4.4
|
|
15.5
|
|
13.8
|
|
21.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
12.9
|
|
3.2
|
|
9.4
|
|
10.0
|
|
1.3
|
|
8.1
|
|
13.2
|
|
32.7
|
International
|
13.7
|
|
8.9
|
|
15.7
|
|
17.4
|
|
6.1
|
|
22.0
|
|
16.1
|
|
15.8
|
|
*The Acelis
Connected Health business was internally transferred from Rapid
Diagnostics to Heart Failure on January 1, 2023. As a result,
$28 million of sales in the second quarter of 2022 and $57 million
in the first half of 2022 were moved from Rapid Diagnostics to
Heart Failure.
|
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects
full-year 2023 diluted earnings per share under GAAP of
$3.02 to $3.22. Abbott forecasts specified items for the
full-year 2023 of $1.28 per share
primarily related to intangible amortization, costs associated with
acquisitions, restructuring and cost reduction initiatives and
other net expenses. Excluding specified items, projected adjusted
diluted earnings per share would be $4.30 to $4.50 for
the full-year 2023.
ABBOTT DECLARES 398TH CONSECUTIVE QUARTERLY
DIVIDEND
On June 9, 2023, the
board of directors of Abbott declared the company's quarterly
dividend of $0.51 per share. Abbott's
cash dividend is payable August 15,
2023, to shareholders of record at the close of business on
July 14, 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 second-quarter earnings conference
call through its Investor Relations website at
www.abbottinvestor.com at 8:30 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, 2022, 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
|
For the full-year 2022,
COVID-19 testing-related sales were $8.368 billion and total
worldwide sales were $43.653 billion.
|
|
|
2
|
Abbott has not provided
the related GAAP financial measure for organic sales growth,
excluding COVID-19 testing-related sales, on a forward-looking
basis because the company is unable to predict the impact of
foreign exchange due to the unpredictability of future changes in
foreign exchange rates, which could significantly impact reported
sales growth.
|
|
|
3
|
Diagnostic sales and
COVID-19 testing-related sales in 2023 and 2022 are summarized
below:
|
|
Sales
2Q23
|
|
|
COVID Tests Sales
2Q23
|
($ in
millions)
|
U.S.
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
Diagnostics
|
961
|
|
1,356
|
|
2,317
|
|
|
216
|
|
47
|
|
263
|
Core
Laboratory
|
311
|
|
982
|
|
1,293
|
|
|
2
|
|
3
|
|
5
|
Molecular
|
43
|
|
98
|
|
141
|
|
|
4
|
|
4
|
|
8
|
Rapid
Diagnostics
|
508
|
|
233
|
|
741
|
|
|
210
|
|
40
|
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
2Q22
|
|
|
COVID Tests Sales
2Q22
|
($ in
millions)
|
U.S.
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
Diagnostics
|
2,441
|
|
1,853
|
|
4,294
|
|
|
1,732
|
|
592
|
|
2,324
|
Core
Laboratory
|
287
|
|
934
|
|
1,221
|
|
|
3
|
|
9
|
|
12
|
Molecular
|
71
|
|
141
|
|
212
|
|
|
34
|
|
41
|
|
75
|
Rapid
Diagnostics
|
1,982
|
|
740
|
|
2,722
|
|
|
1,695
|
|
542
|
|
2,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
1H23
|
|
|
COVID Tests Sales
1H23
|
($ in
millions)
|
U.S.
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
Diagnostics
|
2,296
|
|
2,709
|
|
5,005
|
|
|
824
|
|
169
|
|
993
|
Core
Laboratory
|
600
|
|
1,875
|
|
2,475
|
|
|
4
|
|
7
|
|
11
|
Molecular
|
90
|
|
198
|
|
288
|
|
|
14
|
|
14
|
|
28
|
Rapid
Diagnostics
|
1,414
|
|
552
|
|
1,966
|
|
|
806
|
|
148
|
|
954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
1H22
|
|
|
COVID Tests Sales
1H22
|
($ in
millions)
|
U.S.
|
|
Int'l
|
|
Total
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
Diagnostics
|
5,153
|
|
4,398
|
|
9,551
|
|
|
3,719
|
|
1,908
|
|
5,628
|
Core
Laboratory
|
555
|
|
1,850
|
|
2,405
|
|
|
8
|
|
32
|
|
40
|
Molecular
|
243
|
|
389
|
|
632
|
|
|
148
|
|
173
|
|
321
|
Rapid Diagnostics
|
4,163
|
|
2,084
|
|
6,247
|
|
|
3,563
|
|
1,703
|
|
5,267
|
Abbott Laboratories and
Subsidiaries
Condensed Consolidated
Statement of Earnings
Second Quarter Ended
June 30, 2023 and 2022
(in millions, except
per share data)
(unaudited)
|
|
|
2Q23
|
|
2Q22
|
|
%
Change
|
|
Net Sales
|
$9,978
|
|
$11,257
|
|
(11.4)
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization expense
|
4,483
|
|
4,933
|
|
(9.1)
|
|
Amortization of
intangible assets
|
498
|
|
507
|
|
(1.7)
|
|
Research and
development
|
715
|
|
684
|
|
4.5
|
|
Selling, general, and
administrative
|
2,740
|
|
2,757
|
|
(0.6)
|
|
Total Operating Cost
and Expenses
|
8,436
|
|
8,881
|
|
(5.0)
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
1,542
|
|
2,376
|
|
(35.1)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
61
|
|
106
|
|
(41.7)
|
|
Net foreign exchange
(gain) loss
|
21
|
|
—
|
|
n/m
|
|
Other (income)
expense, net
|
(176)
|
|
(82)
|
|
115.9
|
|
Earnings before
taxes
|
1,636
|
|
2,352
|
|
(30.4)
|
|
Taxes on
earnings
|
261
|
|
334
|
|
(22.0)
|
1)
|
|
|
|
|
|
|
|
Net
Earnings
|
$1,375
|
|
$2,018
|
|
(31.8)
|
|
|
|
|
|
|
|
|
Net Earnings excluding
Specified Items, as described below
|
$1,893
|
|
$2,542
|
|
(25.5)
|
2)
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share
|
$0.78
|
|
$1.14
|
|
(31.6)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share,
excluding Specified
Items, as described below
|
$1.08
|
|
$1.43
|
|
(24.5)
|
2)
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
Plus Dilutive Common
Stock Options
|
1,750
|
|
1,765
|
|
|
|
NOTES:
|
See table 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 on the
following below.
|
|
1)
|
2023 Taxes on Earnings
includes the recognition of approximately $40 million of net tax
expense as a result of the resolution of various tax positions
related to prior years.
|
|
|
2)
|
2023 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $518 million, or $0.30 per share,
for intangible amortization, charges related to restructuring and
cost reduction initiatives, expenses associated with acquisitions
and other net expenses.
|
|
|
|
2022 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $524 million, or $0.29 per share,
for intangible amortization, charges related to a voluntary recall
and other net expenses primarily associated with
acquisitions.
|
Abbott Laboratories and
Subsidiaries
Condensed Consolidated
Statement of Earnings
First Half Ended
June 30, 2023 and 2022
(in millions, except
per share data)
(unaudited)
|
|
|
1H23
|
|
1H22
|
|
%
Change
|
|
Net Sales
|
$19,725
|
|
$23,152
|
|
(14.8)
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization expense
|
8,814
|
|
9,920
|
|
(11.2)
|
|
Amortization of
intangible assets
|
989
|
|
1,019
|
|
(2.9)
|
|
Research and
development
|
1,369
|
|
1,381
|
|
(0.9)
|
|
Selling, general, and
administrative
|
5,502
|
|
5,544
|
|
(0.8)
|
|
Total Operating Cost
and Expenses
|
16,674
|
|
17,864
|
|
(6.7)
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
3,051
|
|
5,288
|
|
(42.3)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
113
|
|
223
|
|
(49.2)
|
|
Net foreign exchange
(gain) loss
|
27
|
|
(3)
|
|
n/m
|
|
Other (income)
expense, net
|
(287)
|
|
(160)
|
|
79.3
|
|
Earnings before
taxes
|
3,198
|
|
5,228
|
|
(38.8)
|
|
Taxes on
earnings
|
505
|
|
763
|
|
(33.8)
|
1)
|
|
|
|
|
|
|
|
Net
Earnings
|
$2,693
|
|
$4,465
|
|
(39.7)
|
|
|
|
|
|
|
|
|
Net Earnings excluding
Specified Items, as described below
|
$3,708
|
|
$5,619
|
|
(34.0)
|
2)
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share
|
$1.53
|
|
$2.51
|
|
(39.0)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share,
excluding Specified
Items, as described below
|
$2.11
|
|
$3.16
|
|
(33.2)
|
2)
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
Plus Dilutive Common
Stock Options
|
1,751
|
|
1,770
|
|
|
|
NOTES:
|
See table 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 on the
following below.
|
|
1)
|
2023 Taxes on Earnings
includes the recognition of approximately $62 million of net tax
expense as a result of the resolution of various tax positions
related to prior years.
|
|
|
|
2022 Taxes on Earnings
includes the recognition of approximately $27 million of net tax
expense as a result of the resolution of various tax positions
related to prior years and approximately $32 million in excess tax
benefits associated with share-based compensation.
|
|
2)
|
2023 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $1.015 billion, or $0.58 per
share, for intangible amortization, charges related to
restructuring and cost reduction initiatives, expenses associated
with acquisitions and other net expenses.
|
|
|
|
2022 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $1.154 billion, or $0.65 per
share, for intangible amortization, charges related to a voluntary
recall and other net expenses primarily associated with
acquisitions.
|
Abbott Laboratories and
Subsidiaries
Non-GAAP Reconciliation
of Financial Information
Second Quarter Ended
June 30, 2023 and 2022
(in millions, except
per share data)
(unaudited)
|
|
|
2Q23
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
|
|
|
|
|
Intangible
Amortization
|
$
498
|
|
$
(498)
|
|
$
—
|
Gross
Margin
|
4,997
|
|
529
|
|
5,526
|
R&D
|
715
|
|
(72)
|
|
643
|
SG&A
|
2,740
|
|
(22)
|
|
2,718
|
Other (income)
expense, net
|
(176)
|
|
57
|
|
(119)
|
Earnings before
taxes
|
1,636
|
|
566
|
|
2,202
|
Taxes on
Earnings
|
261
|
|
48
|
|
309
|
Net
Earnings
|
1,375
|
|
518
|
|
1,893
|
Diluted Earnings per
Share
|
$
0.78
|
|
$
0.30
|
|
$
1.08
|
Specified items reflect intangible amortization expense of
$498 million and other net expenses
of $68 million associated with
restructuring actions, costs associated with acquisitions and other
net expenses. See table titled "Details of Specified
Items" for additional details regarding specified items.
|
2Q22
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
|
|
|
|
|
Intangible
Amortization
|
$
507
|
|
$
(507)
|
|
$
—
|
Gross
Margin
|
5,817
|
|
563
|
|
6,380
|
R&D
|
684
|
|
(32)
|
|
652
|
SG&A
|
2,757
|
|
(14)
|
|
2,743
|
Other (income)
expense, net
|
(82)
|
|
(12)
|
|
(94)
|
Earnings before
taxes
|
2,352
|
|
621
|
|
2,973
|
Taxes on
Earnings
|
334
|
|
97
|
|
431
|
Net
Earnings
|
2,018
|
|
524
|
|
2,542
|
Diluted Earnings per
Share
|
$
1.14
|
|
$
0.29
|
|
$
1.43
|
Specified items reflect intangible amortization expense of
$507 million and other net expenses
of $114 million that includes costs
associated with a product recall, acquisitions, and other net
expenses. See table titled "Details of Specified Items" for
additional details regarding specified items.
Abbott Laboratories and
Subsidiaries
Non-GAAP Reconciliation
of Financial Information
First Half Ended
June 30, 2023 and 2022
(in millions, except
per share data)
(unaudited)
|
|
|
1H23
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
|
|
|
|
|
Intangible
Amortization
|
$
989
|
|
$
(989)
|
|
$
—
|
Gross
Margin
|
9,922
|
|
1,049
|
|
10,971
|
R&D
|
1,369
|
|
(98)
|
|
1,271
|
SG&A
|
5,502
|
|
(24)
|
|
5,478
|
Other (income)
expense, net
|
(287)
|
|
57
|
|
(230)
|
Earnings before
taxes
|
3,198
|
|
1,114
|
|
4,312
|
Taxes on
Earnings
|
505
|
|
99
|
|
604
|
Net
Earnings
|
2,693
|
|
1,015
|
|
3,708
|
Diluted Earnings per
Share
|
$
1.53
|
|
$
0.58
|
|
$
2.11
|
Specified items reflect intangible amortization expense of
$989 million and other net expenses
of $125 million associated with
restructuring actions, costs associated with acquisitions and other
expenses. See table titled "Details of Specified Items" for
additional details regarding specified items.
|
1H22
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
|
|
|
|
|
Intangible
Amortization
|
$
1,019
|
|
$
(1,019)
|
|
$
—
|
Gross
Margin
|
12,213
|
|
1,199
|
|
13,412
|
R&D
|
1,381
|
|
(65)
|
|
1,316
|
SG&A
|
5,544
|
|
(53)
|
|
5,491
|
Other (income)
expense, net
|
(160)
|
|
(27)
|
|
(187)
|
Earnings before
taxes
|
5,228
|
|
1,344
|
|
6,572
|
Taxes on
Earnings
|
763
|
|
190
|
|
953
|
Net
Earnings
|
4,465
|
|
1,154
|
|
5,619
|
Diluted Earnings per
Share
|
$
2.51
|
|
$
0.65
|
|
$
3.16
|
Specified items reflect intangible amortization expense of
$1.019 billion and other net expenses
of $325 million that includes costs
associated with a product recall, acquisitions, and other net
expenses. See table titled "Details of Specified Items" for
additional details regarding specified items.
A reconciliation of the second-quarter tax rates for 2023 and
2022 is shown below:
|
2Q23
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$
1,636
|
|
$
261
|
|
15.9 %
|
1)
|
Specified
items
|
566
|
|
48
|
|
|
|
Excluding specified
items
|
$
2,202
|
|
$
309
|
|
14.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q22
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$
2,352
|
|
$
334
|
|
14.2 %
|
|
Specified
items
|
621
|
|
97
|
|
|
|
Excluding specified
items
|
$
2,973
|
|
$
431
|
|
14.5 %
|
|
1)
|
2023 Taxes on Earnings
includes the recognition of approximately $40 million of net tax
expense as a result of the resolution of various tax positions
related to prior years.
|
|
|
A reconciliation of the
year-to-date tax rates for 2023 and 2022 is shown below:
|
|
|
1H23
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$
3,198
|
|
$
505
|
|
15.8 %
|
2)
|
Specified
items
|
1,114
|
|
99
|
|
|
|
Excluding specified
items
|
$
4,312
|
|
$
604
|
|
14.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1H22
|
|
($ in
millions)
|
Pre-Tax
Income
|
|
Taxes
on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
$
5,228
|
|
$
763
|
|
14.6 %
|
3)
|
Specified
items
|
1,344
|
|
190
|
|
|
|
Excluding specified
items
|
$
6,572
|
|
$
953
|
|
14.5 %
|
|
2)
|
2023 Taxes on Earnings
includes the recognition of approximately $62 million of net tax
expense as a result of the resolution of various tax positions
related to prior years.
|
|
|
3)
|
2022 Taxes on Earnings
includes the recognition of approximately $27 million of net tax
expense as a result of the resolution of various tax positions
related to prior years and approximately $32 million in excess tax
benefits associated with share-based compensation.
|
Abbott Laboratories and
Subsidiaries
Non-GAAP Revenue
Reconciliation
Second Quarter and
First Half Ended June 30, 2023 and 2022
($ in
millions)
(unaudited)
|
|
|
|
2Q23
|
|
2Q22
|
|
% Change vs.
2Q22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
Abbott
Reported
|
Impact
of CSI
acquisition
(a)
|
Impact from
business
exit (b)
|
Adjusted
Revenue
|
|
Abbott
Reported
|
Impact from
business
exit (b)
|
Adjusted
Revenue
|
|
Reported
|
|
Adjusted
|
Organic
|
|
Total
Company
|
|
9,978
|
(43)
|
(29)
|
9,906
|
|
11,257
|
(39)
|
11,218
|
|
(11.4)
|
|
(11.7)
|
(9.2)
|
|
U.S.
|
|
3,758
|
(39)
|
—
|
3,719
|
|
4,892
|
—
|
4,892
|
|
(23.2)
|
|
(24.0)
|
(24.0)
|
|
Intl
|
|
6,220
|
(4)
|
(29)
|
6,187
|
|
6,365
|
(39)
|
6,326
|
|
(2.3)
|
|
(2.2)
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Nutrition
|
|
2,076
|
—
|
(29)
|
2,047
|
|
1,953
|
(39)
|
1,914
|
|
6.3
|
|
6.9
|
9.9
|
|
U.S.
|
|
881
|
—
|
—
|
881
|
|
761
|
—
|
761
|
|
15.7
|
|
15.7
|
15.7
|
|
Intl
|
|
1,195
|
—
|
(29)
|
1,166
|
|
1,192
|
(39)
|
1,153
|
|
0.3
|
|
1.2
|
6.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pediatric
Nutrition
|
|
1,024
|
—
|
(29)
|
995
|
|
925
|
(39)
|
886
|
|
10.6
|
|
12.2
|
14.5
|
|
U.S.
|
|
507
|
—
|
—
|
507
|
|
413
|
—
|
413
|
|
22.5
|
|
22.5
|
22.5
|
|
Intl
|
|
517
|
—
|
(29)
|
488
|
|
512
|
(39)
|
473
|
|
1.1
|
|
3.3
|
7.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Medical
Devices
|
|
4,295
|
(43)
|
—
|
4,252
|
|
3,785
|
—
|
3,785
|
|
13.5
|
|
12.3
|
14.2
|
|
U.S.
|
|
1,913
|
(39)
|
—
|
1,874
|
|
1,688
|
—
|
1,688
|
|
13.3
|
|
11.0
|
11.0
|
|
Intl
|
|
2,382
|
(4)
|
—
|
2,378
|
|
2,097
|
—
|
2,097
|
|
13.6
|
|
13.4
|
16.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular
|
|
715
|
(43)
|
—
|
672
|
|
653
|
—
|
653
|
|
9.3
|
|
2.7
|
5.0
|
|
U.S.
|
|
264
|
(39)
|
—
|
225
|
|
228
|
—
|
228
|
|
15.4
|
|
(1.9)
|
(1.9)
|
|
Intl
|
|
451
|
(4)
|
—
|
447
|
|
425
|
—
|
425
|
|
6.1
|
|
5.2
|
8.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1H23
|
|
1H22
|
|
% Change vs.
1H22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
Abbott
Reported
|
Impact
of CSI
acquisition
(a)
|
Impact from
business exit
(b)
|
Adjusted
Revenue
|
|
Abbott
Reported
|
Impact from
business
exit(b)
|
Adjusted
Revenue
|
|
Reported
|
Adjusted
|
Organic
|
|
Total
Company
|
|
19,725
|
(43)
|
(37)
|
19,645
|
|
23,152
|
(91)
|
23,061
|
|
(14.8)
|
(14.8)
|
(11.9)
|
|
U.S.
|
|
7,686
|
(39)
|
—
|
7,647
|
|
9,829
|
—
|
9,829
|
|
(21.8)
|
(22.2)
|
(22.2)
|
|
Intl
|
|
12,039
|
(4)
|
(37)
|
11,998
|
|
13,323
|
(91)
|
13,232
|
|
(9.6)
|
(9.3)
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Nutrition
|
|
4,043
|
—
|
(37)
|
4,006
|
|
3,847
|
(91)
|
3,756
|
|
5.1
|
6.7
|
10.1
|
|
U.S.
|
|
1,693
|
—
|
—
|
1,693
|
|
1,438
|
—
|
1,438
|
|
17.7
|
17.7
|
17.7
|
|
Intl
|
|
2,350
|
—
|
(37)
|
2,313
|
|
2,409
|
(91)
|
2,318
|
|
(2.4)
|
(0.1)
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pediatric
Nutrition
|
|
1,948
|
—
|
(37)
|
1,911
|
|
1,772
|
(91)
|
1,681
|
|
9.9
|
13.7
|
16.3
|
|
U.S.
|
|
966
|
—
|
—
|
966
|
|
751
|
—
|
751
|
|
28.6
|
28.6
|
28.6
|
|
Intl
|
|
982
|
—
|
(37)
|
945
|
|
1,021
|
(91)
|
930
|
|
(3.8)
|
1.8
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Medical
Devices
|
|
8,195
|
(43)
|
—
|
8,152
|
|
7,379
|
—
|
7,379
|
|
11.0
|
10.4
|
13.3
|
|
U.S.
|
|
3,691
|
(39)
|
—
|
3,652
|
|
3,233
|
—
|
3,233
|
|
14.2
|
12.9
|
12.9
|
|
Intl
|
|
4,504
|
(4)
|
—
|
4,500
|
|
4,146
|
—
|
4,146
|
|
8.6
|
8.5
|
13.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular
|
|
1,332
|
(43)
|
—
|
1,289
|
|
1,272
|
—
|
1,272
|
|
4.7
|
1.3
|
4.4
|
|
U.S.
|
|
482
|
(39)
|
—
|
443
|
|
437
|
—
|
437
|
|
10.3
|
1.3
|
1.3
|
|
Intl
|
|
850
|
(4)
|
—
|
846
|
|
835
|
—
|
835
|
|
1.8
|
1.3
|
6.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reflects the impact
of the acquisition of Cardiovascular Systems, Inc. (CSI) on
April 27, 2023.
|
(b) Reflects the impact
of exiting the pediatric nutrition business in China. This action
was initiated in December 2022.
|
Abbott Laboratories and
Subsidiaries
Details of Specified
Items
Second Quarter Ended
June 30, 2023
(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
|
$
7
|
|
$
11
|
|
$
498
|
|
$
13
|
|
$
529
|
R&D
|
(8)
|
|
7
|
|
—
|
|
(71)
|
|
(72)
|
SG&A
|
(17)
|
|
(2)
|
|
—
|
|
(3)
|
|
(22)
|
Other (income) expense,
net
|
47
|
|
—
|
|
—
|
|
10
|
|
57
|
Earnings before
taxes
|
$
(15)
|
|
$
6
|
|
$
498
|
|
$
77
|
|
566
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
48
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
518
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
0.30
|
|
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 legal and other costs related to business
acquisitions as well as integration costs, which represent
incremental costs directly related to integrating acquired
businesses. These costs were more than offset by fair value
adjustments to contingent consideration related to business
acquisitions.
|
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
and charges for intangible asset impairments.
|
d)
|
Reflects the net tax
benefit associated with the specified items and tax expense as a
result of the resolution of various tax positions related to prior
years.
|
Abbott Laboratories and
Subsidiaries
Details of Specified
Items
Second Quarter Ended
June 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
|
$
20
|
|
$
(6)
|
|
$
507
|
|
$
42
|
|
$
563
|
R&D
|
(5)
|
|
—
|
|
—
|
|
(27)
|
|
(32)
|
SG&A
|
(7)
|
|
—
|
|
—
|
|
(7)
|
|
(14)
|
Other (income) expense,
net
|
(4)
|
|
—
|
|
—
|
|
(8)
|
|
(12)
|
Earnings before
taxes
|
$
36
|
|
$
(6)
|
|
$
507
|
|
$
84
|
|
621
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
97
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
524
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
0.29
|
|
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 includes costs
related to a voluntary recall within the Nutrition segment and
incremental costs to comply with the 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
First Half Ended
June 30, 2023
(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
|
$
12
|
|
$
32
|
|
$
989
|
|
$
16
|
|
$
1,049
|
R&D
|
(12)
|
|
8
|
|
—
|
|
(94)
|
|
(98)
|
SG&A
|
(21)
|
|
(6)
|
|
—
|
|
3
|
|
(24)
|
Other (income) expense,
net
|
41
|
|
—
|
|
—
|
|
16
|
|
57
|
Earnings before
taxes
|
$
4
|
|
$
30
|
|
$
989
|
|
$
91
|
|
1,114
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
99
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
1,015
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
0.58
|
|
|
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 legal and other costs related to business
acquisitions as well as integration costs, which represent
incremental costs directly related to integrating acquired
businesses. These costs were partially offset by fair value
adjustments to contingent consideration related to business
acquisitions.
|
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 MDR and IVDR regulations for
previously approved products and charges for intangible asset
impairments.
|
d)
|
Reflects the net tax
benefit associated with the specified items and tax expense as a
result of the resolution of various tax positions related to prior
years.
|
Abbott Laboratories and
Subsidiaries
Details of Specified
Items
First Half Ended June
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
|
$
41
|
|
$
(12)
|
|
$
1,019
|
|
$
151
|
|
$
1,199
|
R&D
|
(7)
|
|
(1)
|
|
—
|
|
(57)
|
|
(65)
|
SG&A
|
(18)
|
|
—
|
|
—
|
|
(35)
|
|
(53)
|
Other (income) expense,
net
|
(11)
|
|
—
|
|
—
|
|
(16)
|
|
(27)
|
Earnings before
taxes
|
$
77
|
|
$
(11)
|
|
$
1,019
|
|
$
259
|
|
1,344
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
190
|
Net Earnings
|
|
|
|
|
|
|
|
|
$
1,154
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$
0.65
|
|
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 includes charges
related to a voluntary recall within the Nutrition segment and
incremental costs to comply with the MDR and IVDR regulations for
previously approved products.
|
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.
|
View original
content:https://www.prnewswire.com/news-releases/abbott-reports-second-quarter-2023-results-increases-outlook-for-underlying-base-business-301882027.html
SOURCE Abbott