Abbott Reports Strong Third Quarter Results; Confirms Double-Digit Ongoing Earnings Outlook for 2010

- Third Quarter Ongoing EPS Growth of 14.1 Percent -

- Worldwide Sales Increased 11.8 Percent -

- Company Expands Emerging Markets Presence and Late-Stage Pipeline -

ABBOTT PARK, Ill., Oct. 20 /PRNewswire-FirstCall/ -- Abbott (NYSE: ABT) today announced financial results for the third quarter ended Sept. 30, 2010.

  • Diluted earnings per share, excluding specified items, were $1.05, reflecting 14.1 percent growth, at the high end of Abbott's previously issued guidance range of $1.03 to $1.05. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.57, primarily reflecting costs associated with recently announced restructuring actions for the integration of the Solvay Pharmaceuticals acquisition.
  • Worldwide sales increased 11.8 percent to $8.7 billion, including an unfavorable 1.0 percent effect of foreign exchange rates. Growth in the quarter was driven by worldwide pharmaceutical sales, which increased 21.7 percent, including the contribution from the Solvay acquisition, as well as worldwide vascular products sales, which increased 18.6 percent.
  • Third quarter results included strong investment spending, particularly in R&D, as well as an improvement in adjusted gross margin ratio to 61.6 percent.
  • Abbott is confirming its 2010 ongoing earnings-per-share guidance and raising the lower end of its previous guidance range. As a result, Abbott's ongoing earnings-per-share guidance for full-year 2010 is now $4.16 to $4.18, excluding specified items.


 

"Abbott delivered strong performance in the quarter as we confirmed our double-digit growth outlook for the full year," said Miles D. White, chairman and chief executive officer, Abbott. "During the quarter, we announced an agreement to expand our pharmaceutical pipeline with an attractive late-stage asset for the treatment of chronic kidney disease, which follows the addition of several novel compounds earlier this year. In addition, we completed the acquisition of Piramal's Healthcare Solutions business and finalized the integration planning for the Solvay Pharmaceuticals acquisition. The strategic actions we've taken across our global businesses position us well in high-growth emerging markets as well as promising new therapeutic areas."

The following is a summary of third-quarter 2010 sales.


 
 

Quarter Ended 9/30/10


 

 

 

 

 

 

 
 

(dollars in millions)


 

 

% Change vs. 3Q09

 

 

Sales


 

Reported


 

Foreign Exchange


 

Operational

 

 

 

 

 

 

 

 

 
 

Total Sales                    

$8,675


 

11.8


 

(1.0)


 

12.8

 

 

 

 

 

 

 

 

 
 

   Total International Sales

$4,813


 

16.2


 

(2.0)


 

18.2

 

 

 

 

 

 

 

 

 
 

   Total U.S. Sales

$3,862


 

6.6


 

--


 

6.6

 

 

 

 

 

 

 

 

 
 

Worldwide Pharmaceutical Sales

$4,937


 

21.7

a

(1.6)


 

23.3

 

 

 

 

 

 

 

 

 
 

   International Pharmaceuticals

$2,674


 

29.7

a

(3.2)


 

32.9

 

 

 

 

 

 

 

 

 
 

   U.S. Pharmaceuticals  

$2,263


 

13.5

a

--


 

13.5

 

 

 

 

 

 

 

 

 
 

Worldwide Nutritional Sales

$1,365


 

(1.5)

b

0.8


 

(2.3)

 

 

 

 

 

 

 

 

 
 

   International Nutritionals

$739


 

1.9


 

1.5


 

0.4

 

 

 

 

 

 

 

 

 
 

   U.S. Nutritionals

$626


 

(5.3)

b

--


 

(5.3)

 

 

 

 

 

 

 

 

 
 

Worldwide Diagnostics Sales

$916


 

0.8


 

(1.4)


 

2.2

 

 

 

 

 

 

 

 

 
 

   International Diagnostics

$664


 

(1.7)


 

(1.9)


 

0.2

 

 

 

 

 

 

 

 

 
 

   U.S. Diagnostics

$252


 

8.2


 

--


 

8.2

 

 

 

 

 

 

 

 

 
 

Worldwide Vascular Sales

$790


 

18.6


 

(0.9)


 

19.5

 

 

 

 

 

 

 

 

 
 

    International Vascular

$378


 

39.7


 

(2.3)


 

42.0

 

 

 

 

 

 

 

 

 
 

    U.S. Vascular

$412


 

4.2


 

--


 

4.2

 

 

 

 

 

 

 

 

 
 

Other Sales

$667


 

(10.6)


 

(1.0)


 

(9.6)

 

 
 

Note:  See "Consolidated Statement of Earnings" for more information.


a Includes impact from the acquisition of Solvay Pharmaceuticals, which closed on Feb. 15, 2010.

b Includes impact from a nutritional product recall announced in September 2010.


 
 
                 


 

The following is a summary of nine months ended September 2010 sales.


 
 

Nine Months Ended 9/30/10


 

 

 

 

 

 

 
 

(dollars in millions)


 

 

% Change vs. 9M09

 

 

Sales


 

Reported


 

Foreign Exchange


 

Operational

 

 

 

 

 

 

 

 

 
 

Total Sales                    

$25,199


 

14.7


 

1.8


 

12.9

 

 

 

 

 

 

 

 

 
 

   Total International Sales

$14,293


 

21.2


 

3.4


 

17.8

 

 

 

 

 

 

 

 

 
 

   Total U.S. Sales

$10,906


 

7.1


 

--


 

7.1

 

 

 

 

 

 

 

 

 
 

Worldwide Pharmaceutical Sales

$13,955


 

19.9

a

1.8


 

18.1

 

 

 

 

 

 

 

 

 
 

   International Pharmaceuticals

$7,866


 

27.6

a

3.3


 

24.3

 

 

 

 

 

 

 

 

 
 

   U.S. Pharmaceuticals  

$6,089


 

11.2

a

--


 

11.2

 

 

 

 

 

 

 

 

 
 

Worldwide Nutritional Sales

$4,099


 

6.4

b

2.0


 

4.4

 

 

 

 

 

 

 

 

 
 

   International Nutritionals

$2,152


 

12.4


 

4.1


 

8.3

 

 

 

 

 

 

 

 

 
 

   U.S. Nutritionals

$1,947


 

0.6

b

--


 

0.6

 

 

 

 

 

 

 

 
 

Posted: October 2010


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