By Tess Stynes
Abbott Laboratories said its first-quarter earnings fell 31% as
the health-care products company reported negative currency impact
that masked modest overall sales growth.
Abbott has faced continuing challenges stemming from a recall
last year by one of its baby-formula suppliers, Fonterra
Co-Operative Group Ltd. The recall led Abbott and competitor Danone
SA to take their own products off the market across Asia. The scare
was prompted by a Fonterra warning that its powdered milk might
contain dangerous bacteria, which ultimately turned out to be a
false alarm.
In the latest quarter, Abbott's nutrition business sales fell 4%
to $1.63 billion. Excluding currency fluctuations, the decline was
1.7%.
International sales, which comprise more than 70% of Abbott's
total sales, dropped 2.3%. However, excluding exchange rates, they
improved by 1.8%. Abbott also estimated the nutrition segment
recall last year and timing of supply in its established
pharmaceuticals segment related to an expected plant shutdown had a
negative impact of 2.6 percentage points.
Abbott reported a profit of $375 million, or 24 cents a share,
down from $544 million, or 34 cents a share, a year earlier.
Excluding restructuring-related expenses, tax impacts and other
items, adjusted earnings from continuing operations fell to 41
cents from 42 cents. Revenue decreased 2.5% to $5.25 billion.
Excluding currency fluctuations, sales rose 0.5%.
The company expected per-share profit of 34 cents to 36 cents
and a sales decline in the low single digits.
Research-and-development expenses increased 12%.
Abbott spun off its specialty pharmaceuticals business as AbbVie
Inc. early last year. AbbVie plans to release its first-quarter
financial results April 25.
Shares of Abbott, which affirmed its 2014 outlook, rose 1.7% to
$38.62 in recent premarket trading.
Write to Tess Stynes at tess.stynes@wsj.com
Access Investor Kit for Danone SA
Visit
http://www.companyspotlight.com/partner?cp_code=A591&isin=FR0000120644
Access Investor Kit for Abbott Laboratories
Visit
http://www.companyspotlight.com/partner?cp_code=A591&isin=US0028241000
Access Investor Kit for Danone SA
Visit
http://www.companyspotlight.com/partner?cp_code=A591&isin=US23636T1007
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
