TIDMABT
RNS Number : 9658M
Abbott Laboratories
19 October 2016
Abbott Reports Third-Quarter 2016 Results
- THIRD-QUARTER REPORTED SALES GROWTH OF 2.9 PERCENT;
OPERATIONAL SALES GROWTH OF 4.0 PERCENT
- NARROWS FULL-YEAR 2016 EPS GUIDANCE RANGE FOR CONTINUING
OPERATIONS
- LAUNCHES MULTIPLE NEW PRODUCTS AND CONTINUES TO SHAPE BUSINESS
FOR LONG-TERM GROWTH
ABBOTT PARK, Ill., Oct. 19, 2016 /PRNewswire/ -- Abbott today
announced financial results for the third quarter ended Sept. 30,
2016.
-- Third-quarter worldwide sales of $5.3 billion increased 2.9
percent on a reported basis and 4.0 percent on an operational
basis.
-- Reported diluted EPS from continuing operations under GAAP
was a $(0.24) loss in the third quarter, primarily due to an
adjustment of $(0.66) per share associated with Abbott's equity
investment in Mylan to reflect Mylan's share price as of Sept. 30,
2016. Excluding specified items, adjusted diluted EPS from
continuing operations was $0.59 in the third quarter, at the high
end of the previous guidance range.
-- Abbott adjusted its full-year 2016 EPS guidance for
continuing operations under GAAP to $0.59 to $0.61, and narrowed
and raised at the mid-point its full-year 2016 adjusted EPS for
continuing operations to $2.19 to $2.21, exceeding its initial
guidance for the year.
-- In the third quarter, Abbott received U.S. FDA approval for
its FreeStyle(R) Libre Pro system, a revolutionary continuous
glucose monitoring system for healthcare professionals to use with
their patients with diabetes; submitted for U.S. regulatory
approval a consumer version of FreeStyle Libre, to be used by
people with diabetes to self-monitor glucose levels; received U.S.
FDA approval for Absorb(TM) , the only fully dissolving heart
stent; and received U.S. FDA approval for TECNIS(R) Symfony
intraocular lenses for the treatment of cataracts, the first and
only extended depth of focus lenses for people with cataracts.
-- On Sept. 16, 2016, Abbott announced the sale of Abbott
Medical Optics, its vision care business, to Johnson & Johnson
for $4.325 billion. This transaction aligns with Abbott's shaping
of its portfolio, which has recently focused on developing
leadership positions in cardiovascular devices and expanding
diagnostics. The transaction is expected to close in the first
quarter of 2017 and is subject to customary closing conditions,
including regulatory approvals.
"Strong performance in Established Pharmaceuticals and Medical
Devices led our sales growth this quarter," said Miles D. White,
chairman and chief executive officer, Abbott. "We're on track to
deliver the financial commitments we set at the beginning of the
year. We also had several key product launches and continued to
take strategic actions to shape our business for long-term
growth."
THIRD-QUARTER BUSINESS OVERVIEW
Following are sales by business segment and commentary for the
third quarter and the first nine months of the year:
Total Company
($ in millions)
% Change vs. 3Q15
-----------------------------------------------
Sales 3Q16 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- ------ ---------- ------------- ---------- -------------
Total * 1,645 3,657 5,302 4.5 2.2 3.7 2.9 4.0
------- ------- ------- ------ ---------- ------------- ---------- -------------
Nutrition 755 1,000 1,755 3.5 (5.7) (4.1) (2.0) (1.0)
Diagnostics 362 851 1,213 4.1 5.3 6.0 5.0 5.4
Established
Pharmaceuticals -- 1,012 1,012 n/a 5.3 9.0 5.3 9.0
Medical Devices 519 791 1,310 6.0 6.7 6.1 6.4 6.0
* Total Abbott Sales from continuing operations include Other Sales of $12 million.
% Change vs. 9M15
------------------------------------------------------------
Sales 9M16 Int'l Total
--------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- -------- -------- ------ ---------- ------------- ---------- -------------
Total * 4,831 10,689 15,520 3.5 1.3 5.9 2.0 5.2
------- -------- -------- ------ ---------- ------------- ---------- -------------
Nutrition 2,224 2,942 5,166 3.8 (3.0) 1.6 (0.2) 2.5
Diagnostics 1,062 2,495 3,557 3.6 3.9 7.1 3.8 6.1
Established
Pharmaceuticals -- 2,880 2,880 n/a 1.6 9.8 1.6 9.8
Medical Devices 1,520 2,359 3,879 2.8 4.1 5.6 3.6 4.5
* Total Abbott Sales from continuing operations include Other Sales of $38 million.
n/a = Not Applicable.
Note: Operational growth reflects percentage change over the prior year excluding the impact
of exchange rates. 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.
Third-quarter 2016 worldwide sales of $5.3 billion increased 2.9
percent on a reported basis, including an unfavorable 1.1 percent
effect of foreign exchange, and increased 4.0 percent on an
operational basis. Excluding the impact of Venezuelan operations,
sales would have increased 4.5 percent on a reported basis and 5.6
percent on an operational basis.
International sales increased 2.2 percent on a reported basis
and 3.7 percent on an operational basis in the third quarter.
International operational growth was led by strong performance
across Established Pharmaceuticals, Diagnostics and Medical
Devices.
Nutrition
($ in millions)
% Change vs. 3Q15
------------------------------------------------------------
Sales 3Q16 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- ------ ---------- ------------- ---------- -------------
Total 755 1,000 1,755 3.5 (5.7) (4.1) (2.0) (1.0)
------- ------- ------- ------ ---------- ------------- ---------- -------------
Pediatric 414 553 967 4.3 (9.4) (7.5) (4.0) (2.8)
Adult 341 447 788 2.6 (0.8) 0.6 0.6 1.4
% Change vs. 9M15
------------------------------------------------------------
Sales 9M16 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- ------ ---------- ------------- ---------- -------------
Total 2,224 2,942 5,166 3.8 (3.0) 1.6 (0.2) 2.5
------- ------- ------- ------ ---------- ------------- ---------- -------------
Pediatric 1,242 1,664 2,906 5.0 (5.1) (0.7) (1.0) 1.6
Adult 982 1,278 2,260 2.3 (0.1) 4.7 0.9 3.7
Worldwide Nutrition sales decreased 2.0 percent on a reported
basis in the third quarter, including an unfavorable 1.0 percent
effect of foreign exchange, and decreased 1.0 percent on an
operational basis.
Worldwide Pediatric Nutrition sales decreased 4.0 percent on a
reported basis in the third quarter, including an unfavorable 1.2
percent effect of foreign exchange, and decreased 2.8 percent on an
operational basis. During the quarter, Abbott introduced Similac(R)
Pro-Advance(TM) and Similac Pro-Sensitive(TM), the first infant
formulas in the U.S. with a human milk oligosaccharide that offers
a unique immune-nourishing prebiotic. International sales declined
9.4 percent on a reported basis and 7.5 percent on an operational
basis, driven by challenging market conditions in China, partially
offset by continued strong performance in Latin America and
Southeast Asia.
Worldwide Adult Nutrition sales increased 0.6 percent on a
reported basis in the third quarter, including an unfavorable 0.8
percent effect of foreign exchange, and increased 1.4 percent on an
operational basis. Operational sales growth in the quarter was led
by growth of Ensure(R) , Abbott's complete and balanced nutrition
brand.
Diagnostics
($ in millions)
% Change vs. 3Q15
-------------------------------------------------------------
Sales 3Q16 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- ------- ---------- ------------- ---------- -------------
Total 362 851 1,213 4.1 5.3 6.0 5.0 5.4
------- ------- ------- ------- ---------- ------------- ---------- -------------
Core
Laboratory 220 757 977 7.6 5.0 5.7 5.6 6.1
Molecular 42 70 112 (9.6) 5.4 6.3 (0.8) (0.3)
Point of
Care 100 24 124 3.4 15.6 14.1 5.6 5.3
% Change vs. 9M15
-------------------------------------------------------------
Sales 9M16 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- ------- ---------- ------------- ---------- -------------
Total 1,062 2,495 3,557 3.6 3.9 7.1 3.8 6.1
------- ------- ------- ------- ---------- ------------- ---------- -------------
Core
Laboratory 616 2,224 2,840 3.4 3.8 7.1 3.7 6.3
Molecular 140 199 339 (3.4) 1.9 5.2 (0.3) 1.5
Point of
Care 306 72 378 7.6 13.3 13.6 8.6 8.7
Worldwide Diagnostics sales increased 5.0 percent on a reported
basis in the third quarter, including an unfavorable 0.4 percent
effect of foreign exchange, and increased 5.4 percent on an
operational basis. During the quarter, Abbott unveiled its new
suite of diagnostic instruments, Alinity(TM) , at the American
Association for Clinical Chemistry conference. The Alinity suite
includes new instruments for every area of the diagnostics market
where Abbott competes and incorporates features deemed important to
customers, including increased automation, higher volumes, faster
results, smaller size and an improved user interface.
Core Laboratory Diagnostics sales increased 5.6 percent on a
reported basis in the third quarter, including an unfavorable 0.5
percent effect of foreign exchange, and increased 6.1 percent on an
operational basis. Operational sales growth in the quarter was led
by continued share gains in the U.S. and internationally.
Molecular Diagnostics sales decreased 0.8 percent on a reported
basis in the third quarter, including an unfavorable 0.5 percent
effect of foreign exchange, and decreased 0.3 percent on an
operational basis. As expected, continued strong growth in Abbott's
infectious disease testing business was offset primarily by the
planned scale down of its genetics business.
Point of Care Diagnostics sales increased 5.6 percent on a
reported basis in the third quarter, including a favorable 0.3
percent effect of foreign exchange, and increased 5.3 percent on an
operational basis. Sales growth was led by continued adoption of
Abbott's i-STAT(R) handheld system in the U.S. and international
markets.
Established Pharmaceuticals
($ in millions)
% Change vs. 3Q15
------------------------------------------------------------
Sales 3Q16 Int'l Total
-------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- ------ ---------- ------------- ---------- -------------
Total -- 1,012 1,012 n/a 5.3 9.0 5.3 9.0
-------- ------- ------- ------ ---------- ------------- ---------- -------------
Key Emerging
Markets -- 747 747 n/a 7.0 12.2 7.0 12.2
Other -- 265 265 n/a 0.7 0.6 0.7 0.6
% Change vs. 9M15
------------------------------------------------------------
Sales 9M16 Int'l Total
-------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- ------ ---------- ------------- ---------- -------------
Total -- 2,880 2,880 n/a 1.6 9.8 1.6 9.8
-------- ------- ------- ------ ---------- ------------- ---------- -------------
Key Emerging
Markets -- 2,135 2,135 n/a 2.7 13.4 2.7 13.4
Other -- 745 745 n/a (1.5) -- (1.5) --
Established Pharmaceuticals sales increased 5.3 percent on a
reported basis in the third quarter, including an unfavorable 3.7
percent effect of foreign exchange, and increased 9.0 percent on an
operational basis.
Key Emerging Markets include India, Russia, Brazil and China,
along with several additional emerging markets that represent the
most attractive long-term growth opportunities for Abbott's branded
generics product portfolio. Sales in these key geographies
increased 7.0 percent on a reported basis and 12.2 percent on an
operational basis. Operational sales growth was led by continued
strong growth in India, which comprises more than 20 percent of
Abbott's Established Pharmaceuticals sales, as well as above-market
growth in several countries throughout Latin America driven by
commercial initiatives and locally relevant portfolio
expansion.
Medical Devices
($ in millions)
% Change vs. 3Q15
----------------------------------------------------------------
Sales 3Q16 Int'l Total
------------------------- ------------------------- ---------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- -------- ---------- ------------- ---------- ---------------
Total 519 791 1,310 6.0 6.7 6.1 6.4 6.0
------- ------- ------- -------- ---------- ------------- ---------- ---------------
Vascular 305 403 708 9.8 2.0 1.4 5.2 4.9
Diabetes Care 96 210 306 (2.2) 19.1 20.7 11.5 12.5
Medical Optics 118 178 296 3.7 4.8 1.7 4.4 2.5
Vascular Product
Lines:
Coronary
Devices(a) 201 336 537 4.8 -- (0.8) 1.8 1.2
Endovascular(b) 76 66 142 4.6 13.7 14.3 8.6 8.9
(a) Includes DES / BVS product portfolio, structural heart, guidewires, balloon catheters
and other coronary products.
(b) Includes vessel closure, carotid stents and other peripheral
products.
% Change vs. 9M15
--------------------------------------------------------------
Sales 9M16 Int'l Total
------------------------- ------------------------- -------------------------
U.S. Int'l Total U.S. Reported Operational Reported Operational
------- ------- ------- -------- ---------- ------------- ---------- -------------
Total 1,520 2,359 3,879 2.8 4.1 5.6 3.6 4.5
------- ------- ------- -------- ---------- ------------- ---------- -------------
Vascular 940 1,235 2,175 9.5 0.1 1.8 3.9 4.9
Diabetes Care 238 594 832 (18.6) 12.6 15.7 1.5 3.5
Medical Optics 342 530 872 4.2 4.9 4.6 4.6 4.4
Vascular Product
Lines:
Coronary
Devices(a) 597 1,039 1,636 4.5 (1.5) -- 0.6 1.6
Endovascular(b) 226 194 420 7.5 9.0 11.7 8.2 9.4
(a) Includes DES / BVS product portfolio, structural heart, guidewires, balloon catheters
and other coronary products.
(b) Includes vessel closure, carotid stents and other peripheral
products.
Worldwide Medical Devices sales increased 6.4 percent on a
reported basis in the third quarter, including a favorable 0.4
percent effect of foreign exchange, and increased 6.0 percent on an
operational basis.
Worldwide sales of Vascular products increased 5.2 percent on a
reported basis in the third quarter, including a favorable 0.3
percent effect of foreign exchange, and increased 4.9 percent on an
operational basis. Sales growth in Vascular products was led by
double-digit growth of MitraClip(R) , Abbott's device for the
treatment of mitral regurgitation, as Abbott continues to build the
market for this first-in-class device. Strong sales growth in
Abbott's Endovascular business was driven by vessel closure
products and Supera(R) , Abbott's unique stent for the treatment of
blockages in the leg. In the quarter, Abbott received U.S. FDA
approval for Absorb, the only fully dissolving heart stent.
Worldwide Diabetes Care sales increased 11.5 percent on a
reported basis in the third quarter, including an unfavorable 1.0
percent effect of foreign exchange, and increased 12.5 percent on
an operational basis. International sales growth was driven by
continued consumer uptake of FreeStyle Libre, Abbott's
revolutionary continuous glucose monitoring system that eliminates
the need for finger-sticks. In September, Abbott received U.S. FDA
approval for the FreeStyle Libre Pro system, which is designed to
help healthcare professionals make better, customized treatment
decisions for their patients - and at a significantly lower cost
than other professional continuous glucose monitoring systems.
During the quarter, Abbott submitted the consumer version of the
FreeStyle Libre system for review by the U.S. FDA. The consumer
version of the FreeStyle Libre system is designed to eliminate the
need for routine finger-sticks and provides glucose data in a
simple format that allows people with diabetes to better
self-monitor their glucose levels.
Worldwide Medical Optics sales increased 4.4 percent on a
reported basis in the third quarter, including a favorable 1.9
percent effect of foreign exchange, and increased 2.5 percent on an
operational basis. Operational sales growth was driven by continued
market uptake of cataract products in the premium intraocular lens
segment. In the quarter, Abbott received U.S. FDA approval and
launched its TECNIS Symfony intraocular lenses, the first and only
lenses in the U.S. that provide a full range of continuous
high-quality vision following cataract surgery.
ABBOTT NARROWS ITS FULL-YEAR EARNINGS-PER-SHARE GUIDANCE
Abbott is adjusting its projected earnings per share from
continuing operations under Generally Accepted Accounting
Principles (GAAP) to $0.59 to $0.61 for the full year 2016.
Abbott forecasts net specified items for the full year 2016 of
approximately $1.60 per share. Specified items include intangible
amortization expense, the impact of the Venezuelan currency
devaluation in the first quarter and an adjustment to the equity
investment in Mylan in the third quarter, expenses associated with
acquisitions, including bridge facility fees, charges related to
cost reduction initiatives and other expenses and the recognition
of deferred taxes associated with the pending sale of the Abbott
Medical Optics business (AMO), partially offset by the favorable
resolution of various tax positions from prior years.
Excluding specified items, Abbott is raising the mid-point and
narrowing its full-year 2016 guidance range for earnings per share
from continuing operations to $2.19 to $2.21, exceeding its initial
guidance for the year.
ABBOTT DECLARES 371(ST) QUARTERLY DIVID
On Sept. 15, 2016, the board of directors of Abbott declared the
company's quarterly dividend of $0.26 per share. Abbott's cash
dividend is payable Nov. 15, 2016, to shareholders of record at the
close of business on Oct. 14, 2016.
Abbott is a member of the S&P 500 Dividend Aristocrats
Index, which tracks companies that have annually increased their
dividend for 25 consecutive years.
About Abbott:
Abbott is a global healthcare company devoted to improving life
through the development of products and technologies that span the
breadth of healthcare. With a portfolio of leading, science-based
offerings in diagnostics, medical devices, nutritionals and branded
generic pharmaceuticals, Abbott serves people in more than 150
countries and employs approximately 74,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at
@AbbottNews.
Abbott will webcast its live 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 call will be available after 11 a.m. Central
time.
- Private Securities Litigation Reform Act of 1995 -
A Caution Concerning Forward-Looking Statements
Some statements in this news release may be forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995. Abbott cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially from those indicated in the
forward-looking statements. Economic, competitive, governmental,
technological and other factors that may affect Abbott's operations
are discussed in Item 1A, "Risk Factors," to our Annual Report on
Securities and Exchange Commission Form 10-K for the year ended
Dec. 31, 2015, and our Quarterly Report on Form 10-Q for the period
ended June 30, 2016, and are incorporated by reference. Abbott
undertakes no obligation to release publicly any revisions to
forward-looking statements as a result of subsequent events or
developments, except as required by law.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Third Quarter Ended September 30, 2016 and 2015
(in millions, except per share data)
(unaudited)
3Q16 3Q15 % Change
--------- -------- ----------
Net Sales $5,302 $5,150 2.9
Cost of products sold, excluding amortization expense 2,285 2,242 1.9
Amortization of intangible assets 140 151 (7.6)
Research and development 352 378 (6.7)
Selling, general, and administrative 1,628 1,666 (2.3)
Total Operating Cost and Expenses 4,405 4,437 (0.7)
--------- --------
Operating earnings 897 713 25.8
Interest expense, net 95 16 n/m 1)
Net foreign exchange (gain) loss 9 (14) n/m
Other (income) expense, net 972 (3) n/m 2)
--------- --------
Earnings (Loss) from Continuing Operations before taxes (179) 714 n/m
Taxes on Earnings (Loss) from Continuing Operations 178 118 50.4 3)
Earnings (Loss) from Continuing Operations (357) 596 n/m
Earnings (Loss) from Discontinued Operations, net of taxes 28 (32) n/m
Gain on Sale of Discontinued Operations, net of taxes -- 16 n/m
--------- --------
Net Earnings (Loss) from Discontinued Operations, net of taxes 28 (16) n/m
--------- --------
Net Earnings (Loss) $(329) $580 n/m
========= ========
Net Earnings from Continuing Operations, excluding
Specified Items, as described below $883 $821 7.6 4)
========= ========
Diluted Earnings (Loss) per Common Share from:
Continuing Operations $(0.24) $0.39 n/m
Discontinued Operations 0.02 (0.01) n/m
--------- --------
Total $(0.22) $0.38 n/m
========= ========
Diluted Earnings per Common Share from Continuing
Operations, excluding Specified Items, as described below $0.59 $0.54 9.3 4)
========= ========
Average Number of Common Shares Outstanding
Plus Dilutive Common Stock Options 1,476 1,505 5)
NOTES:
See tables on page 14 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
1) 2016 Interest expense, net includes amortization expense associated with bridge
facility fees.
2) 2016 Other (income) expense, net includes a charge of $947 million related to an
adjustment
of Abbott's holdings of Mylan N.V. ordinary shares to reflect the share price as
of Sept.
30, 2016.
3) 2016 Tax expense on Earnings (Loss) from Continuing Operations includes the
impact of the
non-deductible Mylan equity investment adjustment and the recognition of
deferred taxes associated
with the pending sale of AMO, partially offset by a net tax benefit of
approximately $105
million as a result of the resolution of various tax positions from prior years.
4) 2016 Net Earnings from Continuing Operations, excluding Specified Items,
excludes net after-tax
charges of $1.240 billion, or $0.83 per share, for intangible amortization
expense, an adjustment
to the equity investment in Mylan, expenses primarily associated with
acquisitions, including
bridge facility fees, charges related to cost reduction initiatives and other
expenses and
the recognition of deferred taxes associated with the pending sale of AMO,
partially offset
by the favorable impact of a net tax benefit as a result of the resolution of
various tax
positions from prior years.
2015 Net Earnings from Continuing Operations, excluding Specified Items,
excludes net after-tax
charges of $225 million, or $0.15 per share, for intangible amortization
expense, expenses
associated with cost reduction initiatives and other expenses related to
acquisitions.
5) 2016 Average number of common shares outstanding excludes approximately 6.7
million shares
related to dilutive common stock options, which would be antidilutive.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Nine Months Ended September 30, 2016 and 2015
(in millions, except per share data)
(unaudited)
9M16 9M15 % Change
--------- --------- ----------
Net Sales $15,520 $15,217 2.0
Cost of products sold, excluding amortization expense 6,712 6,541 2.6
Amortization of intangible assets 429 458 (6.4)
Research and development 1,079 1,036 4.2
Selling, general, and administrative 5,063 5,130 (1.3)
Total Operating Cost and Expenses 13,283 13,165 0.9
--------- ---------
Operating earnings 2,237 2,052 9.0
Interest expense, net 203 49 n/m 1)
Net foreign exchange (gain) loss 497 (63) n/m 2)
Other (income) expense, net 999 (287) n/m 3)
--------- ---------
Earnings from Continuing Operations before taxes 538 2,353 (77.1)
Taxes on Earnings from Continuing Operations 240 442 (45.7) 4)
Earnings from Continuing Operations 298 1,911 (84.4)
Earnings (Loss) from Discontinued Operations, net of taxes 288 (7) n/m
Gain on Sale of Discontinued Operations, net of taxes 16 1,752 (99.1)
---------
Net Earnings from Discontinued Operations, net of taxes 304 1,745 (82.6) 5)
--------- ---------
Net Earnings $602 $3,656 (83.5)
========= =========
Net Earnings from Continuing Operations, excluding
Specified Items, as described below $2,310 $2,326 (0.7) 6)
========= =========
Diluted Earnings per Common Share from:
Continuing Operations $0.20 $1.26 (84.1)
Discontinued Operations 0.20 1.15 (82.6) 5)
--------- ---------
Total $0.40 $2.41 (83.4)
========= =========
Diluted Earnings per Common Share from Continuing
Operations, excluding Specified Items, as described below $1.55 $1.53 1.3 6)
========= =========
Average Number of Common Shares Outstanding
Plus Dilutive Common Stock Options 1,483 1,509
NOTES:
See tables on page 15 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
2016 Interest expense, net includes amortization expense associated with bridge
1) facility fees.
2) 2016 Net foreign exchange (gain) loss includes a loss of $481 million related to
the revaluation
of Abbott's net monetary assets in Venezuela using the Dicom exchange rate,
which is the Venezuelan
government's official floating exchange rate.
3) 2016 Other (income) expense, net includes a charge of $947 million related to an
adjustment
of Abbott's holdings of Mylan N.V. ordinary shares to reflect the share price as
of Sept.
30, 2016.
2015 Other (income) expense, net includes a gain on the sale of a portion of
Abbott's position
in Mylan stock and a decrease in the fair value of contingent consideration
related to a business
acquisition.
4) 2016 Tax expense on Earnings from Continuing Operations includes the impact of a
net tax benefit
of approximately $250 million as a result of the resolution of various tax
positions from
prior years, partially offset by the unfavorable impact of non-deductible
foreign exchange
losses related to Venezuela and an adjustment to the equity investment in Mylan
and the recognition
of deferred taxes associated with the pending sale of AMO.
5) 2016 Earnings, net of taxes and Diluted Earnings per Common Share from
Discontinued Operations
primarily reflect the impact of a net tax benefit of $289 million as a result of
the resolution
of various tax positions from prior years.
2015 Earnings, net of taxes and Diluted Earnings per Common Share from
Discontinued Operations
reflect the after-tax gain of $1.752 billion on the sale of the developed
markets branded
generics pharmaceuticals and animal health businesses to Mylan on Feb. 27, 2015
and Zoetis
on Feb. 10, 2015, respectively; the first-quarter financial results from these
businesses
up to the date of sale; and an unfavorable adjustment to tax expense as a result
of the resolution
of various tax positions from previous years related to AbbVie operations.
6) 2016 Net Earnings from Continuing Operations, excluding Specified Items,
excludes net after-tax
charges of $2.012 billion, or $1.35 per share, for intangible amortization
expense, the foreign
exchange loss related to Venezuela, an adjustment to the equity investment in
Mylan, expenses
associated with acquisitions, including bridge facility fees, other charges
related to cost
reduction initiatives and other expenses and the recognition of deferred taxes
associated
with the pending sale of AMO, partially offset by the favorable impact of a net
tax benefit
as a result of the resolution of various tax positions from prior years.
2015 Net Earnings from Continuing Operations, excluding Specified Items,
excludes net after-tax
charges of $415 million, or $0.27 per share, for intangible amortization
expense, expenses
associated with cost reduction initiatives and other expenses related to
acquisitions, partially
offset by a gain on the sale of a portion of Abbott's position in Mylan stock
and a decrease
in the fair value of contingent consideration related to a business acquisition.
NON-GAAP RECONCILIATION OF FINANCIAL INFORMATION FROM CONTINUING
OPERATIONS
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information From Continuing Operations
Third Quarter Ended September 30, 2016 and 2015
(in millions, except per share data)
(unaudited)
3Q16
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $140 $(140) --
Gross Margin 2,877 158 $3,035 57.3%
R&D 352 (22) 330 6.2%
SG&A 1,628 (53) 1,575 29.7%
Interest expense, net 95 (70) 25
Net foreign exchange (gain) loss 9 (4) 5
Other (income) expense, net 972 (957) 15
Earnings (Loss) from Continuing Operations before taxes (179) 1,264 1,085
Taxes on Earnings (Loss) from Continuing Operations 178 24 202
Earnings (Loss) from Continuing Operations (357) 1,240 883
Diluted Earnings (Loss) per Share from Continuing
Operations $(0.24) $0.83 $0.59
Specified items reflect intangible amortization expense of $140
million, an adjustment to the equity investment in Mylan of $947
million, and other expenses of $177 million, primarily associated
with acquisitions, including bridge facility fees, charges related
to cost reduction initiatives and other expenses and the
recognition of approximately $130 million of deferred taxes
associated with the pending sale of AMO, partially offset by a net
tax benefit of approximately $105 million as a result of the
resolution of various tax positions from prior years.
3Q15
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $151 $(151) --
Gross Margin 2,757 206 $2,963 57.5%
R&D 378 (59) 319 6.2%
SG&A 1,666 (46) 1,620 31.4%
Other (income) expense, net (3) 12 9
Earnings from Continuing Operations before taxes 714 299 1,013
Taxes on Earnings from Continuing Operations 118 74 192
Earnings from Continuing Operations 596 225 821
Diluted Earnings per Share from Continuing Operations $0.39 $0.15 $0.54
Specified items reflect intangible amortization expense of $151
million and other expenses of $148 million, primarily associated
with cost reduction initiatives and acquisitions.
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information From Continuing Operations
Nine Months Ended September 30, 2016 and 2015
(in millions, except per share data)
(unaudited)
9M16
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $429 $(429) --
Gross Margin 8,379 500 $8,879 57.2%
R&D 1,079 (68) 1,011 6.5%
SG&A 5,063 (150) 4,913 31.7%
Interest expense, net 203 (139) 64
Net foreign exchange (gain) loss 497 (481) 16
Other (income) expense, net 999 (962) 37
Earnings from Continuing Operations before taxes 538 2,300 2,838
Taxes on Earnings from Continuing Operations 240 288 528
Earnings from Continuing Operations 298 2,012 2,310
Diluted Earnings per Share from Continuing Operations $0.20 $1.35 $1.55
Specified items reflect intangible amortization expense of $429
million, an adjustment to the equity investment in Mylan of $947
million, the impact of the foreign exchange loss in Venezuela of
$481 million, and other expenses of $443 million, primarily
associated with acquisitions, including bridge facility fees, and
charges related to cost reduction initiatives and other expenses
and the recognition of approximately $130 million of deferred taxes
associated with the pending sale of AMO, partially offset by a net
tax benefit of approximately $250 million as a result of the
resolution of various tax positions from prior years.
9M15
-----------------------------------------------
As
Reported Specified As % to
(GAAP) Items Adjusted Sales
----------- ----------- ----------- --------
Intangible Amortization $458 $(458) --
Gross Margin 8,218 577 $8,795 57.8%
R&D 1,036 (81) 955 6.3%
SG&A 5,130 (155) 4,975 32.7%
Other (income) expense, net (287) 294 7
Earnings from Continuing Operations before taxes 2,353 519 2,872
Taxes on Earnings from Continuing Operations 442 104 546
Earnings from Continuing Operations 1,911 415 2,326
Diluted Earnings per Share from Continuing Operations $1.26 $0.27 $1.53
Specified items reflect intangible amortization expense of $458
million and other expenses of $348 million, primarily associated
with cost reduction initiatives and acquisitions, partially offset
by a gain on the sale of a portion of Abbott's position in Mylan
stock of $207 million and a decrease in the fair value of
contingent consideration related to a business acquisition.
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
A reconciliation of the third-quarter tax rates for continuing
operations for 2016 and 2015 is shown below:
3Q16
---------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
--------- ----------- ---------
As reported (GAAP) $(179) $178 (99.5%)
Specified items 1,264 24
--------- -----------
Excluding specified items $1,085 $202 18.6%
3Q15
---------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
--------- ----------- ---------
As reported (GAAP) $714 $118 16.6%
Specified items 299 74
--------- -----------
Excluding specified items $1,013 $192 19.0%
A reconciliation of the year-to-date tax rates for continuing
operations for 2016 and 2015 is shown below:
9M16
-------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
--------- ----------- -------
As reported (GAAP) $538 $240 44.5%
Specified items 2,300 288
--------- -----------
Excluding specified items $2,838 $528 18.6%
9M15
-------------------------------
Pre-Tax Taxes on Tax
($ in millions) Income Earnings Rate
--------- ----------- -------
As reported (GAAP) $2,353 $442 18.8%
Specified items 519 104
--------- -----------
Excluding specified items $2,872 $546 19.0%
CONTACT: Abbott Financial: Scott Leinenweber, (224) 668-0791,
Michael Comilla, (224) 668-1872, or Jeffrey Byrne, (224) 668-8808;
Abbott Media: Darcy Ross, (224) 667-3655 or Elissa Maurer, (224)
668-3309
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRTGGGCUUUPQGPB
(END) Dow Jones Newswires
October 19, 2016 08:08 ET (12:08 GMT)
Abbott Labs (LSE:ABT)
Historical Stock Chart
From Oct 2024 to Nov 2024
Abbott Labs (LSE:ABT)
Historical Stock Chart
From Nov 2023 to Nov 2024
