ABBOTT PARK, Ill., April 19, 2017
/PRNewswire/ -- Abbott (NYSE: ABT) today announced financial
results for the first quarter ended March
31, 2017.
- Reported diluted EPS from continuing operations under GAAP was
$0.22 in the first
quarter. Excluding specified items, adjusted diluted EPS from
continuing operations was $0.48 in
the first quarter, above the previous guidance range of
$0.42 to $0.44.
- First-quarter worldwide sales of $6.3
billion increased 29.7 percent on a reported basis and 3.2
percent on a comparable operational†
basis.
- On Jan. 4, 2017, Abbott completed
the acquisition of St. Jude Medical, establishing the company as a
leader in the broad medical device arena and providing expanded
opportunities for future growth.
- In the first quarter, Abbott received FDA approval for
MRI-conditional labeling for both the Assurity MRITM
pacemaker and the TendrilTM MRI pacing lead. Abbott
submitted for FDA approval of MRI-conditional labeling for its
EllipseTM implantable cardioverter defibrillator (ICD)
system.
- In January, Abbott initiated the U.S. launch of its new Ensite
PrecisionTM cardiac mapping system, which helps
physicians more effectively treat patients experiencing arrhythmias
in the heart, and initiated the international launch of its new
AlinityTM diagnostics systems.
- In February, Abbott released real-world data from more than
50,000 users of its sensor-based FreeStyle® Libre
glucose monitoring system. The data showed that
FreeStyle Libre use was associated with higher frequency of
glucose testing and better diabetes outcomes, including improved
control of glucose levels.
"Our first quarter results reflect a strong start to the year,"
said Miles D. White, chairman and
chief executive officer, Abbott. "The integration of St. Jude is
going well and recently launched products are contributing to
double-digit sales growth across several areas of our Medical
Devices business."
FIRST-QUARTER BUSINESS OVERVIEW
†Note: Management believes that
measuring sales growth rates on a comparable operational basis is
an appropriate way for investors to best understand the underlying
performance of the business.
Comparable operational sales growth excludes
the impact of exchange and for Total Abbott and Medical Devices,
also includes prior year results for St. Jude Medical, which was
acquired on Jan. 4, 2017, and excludes prior year and current
year results for the Abbott Medical Optics (AMO) and St. Jude
Medical vascular closure businesses, which were divested during the
first quarter 2017. Comparable operational sales growth also
reflects a reduction to St. Jude Medical's historic
sales related to administrative fees paid to conform to
Abbott's presentation, as further described in Form
8-K issued on April 18, 2017.
Following are sales by business segment and commentary for
the first quarter:
Total Company
($ in millions)
|
|
|
|
|
|
|
|
|
% Change vs.
1Q16
|
|
|
Sales
1Q17
|
|
Reported
|
|
Comparable
Operational
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
2,324
|
|
4,011
|
|
6,335
|
|
51.8
|
|
19.6
|
|
29.7
|
|
3.9
|
|
2.8
|
|
3.2
|
Nutrition
|
|
730
|
|
912
|
|
1,642
|
|
1.6
|
|
(4.3)
|
|
(1.7)
|
|
1.6
|
|
(3.0)
|
|
(1.0)
|
Diagnostics
|
|
371
|
|
787
|
|
1,158
|
|
9.4
|
|
1.1
|
|
3.6
|
|
9.4
|
|
2.6
|
|
4.7
|
Established
Pharmaceuticals
|
|
--
|
|
950
|
|
950
|
|
n/a
|
|
7.0
|
|
7.0
|
|
n/a
|
|
5.7
|
|
5.7
|
Medical
Devices
|
|
1,136
|
|
1,259
|
|
2,395
|
|
144.0
|
|
72.2
|
|
100.2
|
|
3.6
|
|
5.4
|
|
4.5
|
|
n/a = Not
Applicable.
|
|
* In 2017, Total
Abbott sales from continuing operations include Other Sales of $190
million, including sales of $175 million from the AMO business,
which was divested during the first quarter 2017. In 2016, the AMO
business was reported as part of the Medical Devices group.
Comparable operational growth rates above exclude results from the
AMO business.
|
|
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.
|
First-quarter 2017 worldwide sales of $6.3 billion increased 29.7 percent on a reported
basis. On a comparable operational basis, worldwide sales increased
3.2 percent. Refer to the final table for a reconciliation of
comparable historical revenue.
Nutrition
($ in
millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q16
|
|
|
Sales
1Q17
|
|
Reported
|
|
Comparable
Operational
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
730
|
|
912
|
|
1,642
|
|
1.6
|
|
(4.3)
|
|
(1.7)
|
|
1.6
|
|
(3.0)
|
|
(1.0)
|
Pediatric
|
|
432
|
|
495
|
|
927
|
|
7.3
|
|
(12.2)
|
|
(4.1)
|
|
7.3
|
|
(10.8)
|
|
(3.3)
|
Adult
|
|
298
|
|
417
|
|
715
|
|
(5.6)
|
|
7.3
|
|
1.5
|
|
(5.6)
|
|
8.3
|
|
2.0
|
Worldwide Nutrition sales decreased 1.7 percent on a reported
basis in the first quarter, including an unfavorable 0.7 percent
effect of foreign exchange, and decreased 1.0 percent on an
operational basis.
Worldwide Pediatric Nutrition sales decreased 4.1 percent on a
reported basis in the first quarter, including an unfavorable 0.8
percent effect of foreign exchange, and decreased 3.3 percent on an
operational basis. In the U.S., above-market sales growth was led
by continued uptake of several recently launched infant formula
products. International sales declined 12.2 percent on a reported
basis and 10.8 percent on an operational basis. As expected,
challenging conditions in the Chinese infant formula market
continued to impact international performance.
Worldwide Adult Nutrition sales increased 1.5 percent on a
reported basis in the first quarter, including an unfavorable 0.5
percent effect of foreign exchange, and increased 2.0 percent on an
operational basis. Strong performance in international Adult
Nutrition, led by continued growth of Ensure® and
Glucerna® in Latin
America and other priority geographies, was partially offset
by lower than expected performance in the U.S.
Diagnostics
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q16
|
|
|
Sales
1Q17
|
|
Reported
|
|
Comparable
Operational
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
371
|
|
787
|
|
1,158
|
|
9.4
|
|
1.1
|
|
3.6
|
|
9.4
|
|
2.6
|
|
4.7
|
Core
Laboratory
|
|
216
|
|
695
|
|
911
|
|
13.8
|
|
--
|
|
3.0
|
|
13.8
|
|
1.8
|
|
4.3
|
Molecular
|
|
45
|
|
67
|
|
112
|
|
(4.1)
|
|
10.0
|
|
3.9
|
|
(4.1)
|
|
10.0
|
|
3.9
|
Point of
Care
|
|
110
|
|
25
|
|
135
|
|
7.3
|
|
8.3
|
|
7.5
|
|
7.3
|
|
8.7
|
|
7.5
|
Worldwide Diagnostics sales increased 3.6 percent on a reported
basis in the first quarter, including an unfavorable 1.1 percent
effect of foreign exchange, and increased 4.7 percent on an
operational basis. Excluding the impact of Venezuelan operations,
Diagnostics sales would have increased 5.3 percent on a reported
basis and 6.4 percent on an operational basis in the first
quarter.
Core Laboratory Diagnostics sales increased 3.0 percent on a
reported basis in the first quarter, including an unfavorable 1.3
percent effect of foreign exchange, and increased 4.3 percent on an
operational basis. During the quarter, Abbott initiated the
international launch of "Alinity s" for blood and plasma screening,
"Alinity c" for clinical chemistry and "Alinity i" for immunoassay
diagnostics. The new Alinity family of harmonized systems provides
high quality results and is designed to be more efficient – running
more tests in less space, generating test results faster and
minimizing human errors.
Molecular Diagnostics sales increased 3.9 percent on both a
reported and operational basis in the first quarter. Continued
strong growth in infectious disease testing, Abbott's core area of
focus in the molecular diagnostics market, was primarily offset by
its planned scale down in other testing areas.
Point of Care Diagnostics sales increased 7.5 percent on both a
reported and operational basis in the first quarter. Sales growth
in the quarter was led by continued adoption of Abbott's
i-STAT® handheld system in the U.S. and strong growth
internationally.
Established Pharmaceuticals
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q16
|
|
|
Sales
1Q17
|
|
Reported
|
|
Comparable
Operational
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
--
|
|
950
|
|
950
|
|
n/a
|
|
7.0
|
|
7.0
|
|
n/a
|
|
5.7
|
|
5.7
|
Key Emerging
Markets
|
|
--
|
|
730
|
|
730
|
|
n/a
|
|
15.2
|
|
15.2
|
|
n/a
|
|
12.5
|
|
12.5
|
Other
|
|
--
|
|
220
|
|
220
|
|
n/a
|
|
(13.4)
|
|
(13.4)
|
|
n/a
|
|
(11.3)
|
|
(11.3)
|
Established Pharmaceuticals sales increased 7.0 percent on a
reported basis in the first quarter, including a favorable 1.3
percent effect of foreign exchange, and increased 5.7 percent on an
operational basis. Excluding the impact of Venezuelan operations,
which is included in Other, Established Pharmaceuticals sales would
have increased 13.0 percent on a reported basis and 11.7 percent on
an operational basis in the first quarter.
Key Emerging Markets include Brazil, Russia, India
and China, along with several
additional emerging countries that represent the most attractive
long-term growth opportunities for Abbott's branded generics
product portfolio. Sales in these key geographies increased 15.2
percent on a reported basis and 12.5 percent on an operational
basis in the first quarter. Abbott continues to achieve
above-market growth in several key geographies driven by commercial
initiatives and locally relevant portfolio expansion.
Medical Devices
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q16
|
|
|
Sales
1Q17
|
|
Reported
|
|
Comparable
Operational
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,136
|
|
1,259
|
|
2,395
|
|
144.0
|
|
72.2
|
|
100.2
|
|
3.6
|
|
5.4
|
|
4.5
|
Cardiovascular and
Neuromodulation
|
|
1,061
|
|
1,042
|
|
2,103
|
|
267.5
|
|
163.0
|
|
207.0
|
|
3.3
|
|
1.4
|
|
2.4
|
Rhythm
Management
|
|
260
|
|
251
|
|
511
|
|
n/m
|
|
n/m
|
|
n/m
|
|
(17.8)
|
|
(4.1)
|
|
(11.6)
|
Electrophysiology
|
|
145
|
|
171
|
|
316
|
|
n/m
|
|
n/m
|
|
n/m
|
|
10.1
|
|
11.6
|
|
10.9
|
Heart
Failure
|
|
109
|
|
33
|
|
142
|
|
n/m
|
|
n/m
|
|
n/m
|
|
(10.1)
|
|
5.1
|
|
(6.9)
|
Vascular
|
|
304
|
|
399
|
|
703
|
|
20.7
|
|
14.2
|
|
16.9
|
|
6.1
|
|
(4.0)
|
|
0.1
|
Structural
Heart
|
|
107
|
|
149
|
|
256
|
|
220.4
|
|
221.5
|
|
221.0
|
|
22.1
|
|
11.3
|
|
15.5
|
Neuromodulation
|
|
136
|
|
39
|
|
175
|
|
n/m
|
|
n/m
|
|
n/m
|
|
62.4
|
|
22.8
|
|
51.5
|
Diabetes
Care
|
|
75
|
|
217
|
|
292
|
|
8.2
|
|
25.0
|
|
20.2
|
|
8.2
|
|
28.8
|
|
22.9
|
|
n/m = Percent change
is not meaningful.
|
Worldwide Medical Devices sales increased 100.2 percent on a
reported basis in the first quarter. On a comparable operational
basis, sales increased 4.5 percent. Refer to the final
table for a reconciliation of comparable historical
revenue.
Worldwide sales of Cardiovascular and Neuromodulation products
increased 207.0 percent on a reported basis in the first quarter.
On a comparable operational basis, sales increased 2.4 percent.
Sales growth in the quarter was led by double-digit growth in
Electrophysiology, Structural Heart, and Neuromodulation. In
Electrophysiology, Abbott initiated the U.S. launch of its Ensite
Precision cardiac mapping system in the first quarter. Growth in
Structural Heart was driven by continued double-digit growth of
MitraClip®, Abbott's market-leading device for the
treatment of mitral regurgitation, and continued international
uptake of Abbott's PorticoTM device used in
treating aortic valve disease
and AmplatzerTM AmuletTM used to
reduce the risk of stroke by preventing clotting in the left atrial
appendage of the heart. In Neuromodulation, strong double-digit
growth on a comparable basis was led by several recently launched
products for the treatment of chronic pain and movement disorders.
As expected, Rhythm Management sales in the U.S. were impacted by
continued competitive dynamics in the MRI-conditional category of
products. In the quarter, Abbott received FDA approval for
MRI-conditional labeling for its Assurity MRI pacemaker and Tendril
MRI pacing lead and submitted for FDA approval of MRI-conditional
labeling for its Ellipse implantable cardioverter defibrillator
(ICD) system, which includes the Tendril MRI pacing lead, and the
DurataTM and OptisureTM defibrillation
leads.
Worldwide Diabetes Care sales increased 20.2 percent on a
reported basis in the first quarter, including an unfavorable 2.7
percent effect of foreign exchange, and increased 22.9 percent on
an operational basis. Strong double-digit international sales
growth was led by continued consumer uptake of FreeStyle Libre,
Abbott's revolutionary continuous glucose monitoring system. In
February, at the Advanced Technologies and Treatments for Diabetes
conference, Abbott presented real-world data from more than 50,000
Libre users in Europe. The data
demonstrated that FreeStyle Libre users checked their glucose
levels an average of 16.3 times per day, more than 3 times the
minimum guidelines for traditional finger stick testing. The data
also showed that a higher frequency of testing was associated with
better diabetes outcomes, including improved glucose levels and a
reduction in hypoglycemia.
ABBOTT'S FULL-YEAR EARNINGS-PER-SHARE GUIDANCE REMAINS
UNCHANGED
Abbott continues to project earnings per share
from continuing operations under Generally Accepted Accounting
Principles (GAAP) of $0.92 to $1.02,
including amortization and integration expenses related to the
acquisition of St. Jude Medical. Projected adjusted diluted
earnings per share from continuing operations remains unchanged at
$2.40 to $2.50 for the full year
2017.
Abbott forecasts net specified items for the full year 2017 of
approximately $1.48 per share.
Specified items include acquisition-related expenses, intangible
amortization expense, charges associated with cost reduction
initiatives and other expenses, partially offset by a gain on the
sale of the AMO business.
ABBOTT DECLARES 373RD QUARTERLY DIVIDEND
On Feb. 17, 2017, the board of
directors of Abbott declared the company's quarterly dividend of
$0.265 per share. Abbott's cash
dividend is payable May 15, 2017, to
shareholders of record at the close of business on April 14, 2017.
Abbott has increased its dividend payout for 45 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 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 94,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at
@AbbottNews.
Abbott will webcast its live first-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 later that 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'' to our Annual
Report on Securities and Exchange Commission Form 10-K for the year
ended Dec. 31, 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
|
First Quarter Ended
March 31, 2017 and 2016
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
1Q17
|
|
1Q16
|
|
%
Change
|
|
Net Sales
|
|
$6,335
|
|
$4,885
|
|
29.7
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
3,044
|
|
2,140
|
|
42.2
|
|
Amortization of
intangible assets
|
|
522
|
|
144
|
|
n/m
|
|
Research and
development
|
|
547
|
|
379
|
|
44.5
|
|
Selling, general, and
administrative
|
|
2,424
|
|
1,698
|
|
42.8
|
|
Total Operating Cost
and Expenses
|
|
6,537
|
|
4,361
|
|
49.9
|
|
|
|
|
|
|
|
|
|
Operating earnings
(loss)
|
|
(202)
|
|
524
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
204
|
|
25
|
|
n/m
|
|
Net foreign exchange
(gain) loss
|
|
(16)
|
|
478
|
|
n/m
|
1)
|
Other (income)
expense, net
|
|
(1,126)
|
|
19
|
|
n/m
|
2)
|
Earnings from
Continuing Operations before taxes
|
|
736
|
|
2
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Tax (benefit) expense
on Earnings from Continuing Operations
|
|
350
|
|
(54)
|
|
n/m
|
3)
|
Earnings from
Continuing Operations
|
|
386
|
|
56
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
|
33
|
|
244
|
|
(86.3)
|
|
Gain on Sale of
Discontinued Operations, net of taxes
|
|
--
|
|
16
|
|
n/m
|
|
Net Earnings from
Discontinued Operations, net of taxes
|
|
33
|
|
260
|
|
(87.1)
|
4)
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$419
|
|
$316
|
|
32.5
|
|
|
|
|
|
|
|
|
|
Net Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$843
|
|
$615
|
|
37.2
|
5)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$0.22
|
|
$0.04
|
|
n/m
|
|
Discontinued
Operations
|
|
0.02
|
|
0.17
|
|
(88.2)
|
4)
|
Total
|
|
$0.24
|
|
$0.21
|
|
14.3
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$0.48
|
|
$0.41
|
|
17.1
|
5)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,735
|
|
1,484
|
|
|
|
|
NOTES:
|
|
See tables below
for an explanation of certain non-GAAP financial
information.
|
n/m = Percent change
is not meaningful.
|
See
footnotes below.
|
|
1)
|
2016 Net foreign
exchange loss includes a loss of $477 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.
|
|
|
2)
|
2017 Other (income)
expense, net includes a pretax gain of $1.151 billion from the sale
of the AMO business.
|
|
|
3)
|
2017 Tax (benefit)
expense on Earnings from Continuing Operations includes the tax
associated with a $1.151 billion pretax gain on the sale of
the AMO business.
|
|
|
|
2016 Tax (benefit)
expense on Earnings from Continuing Operations includes the impact
of a net tax benefit of approximately $140 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.
|
|
|
4)
|
2017 Earnings and
Diluted Earnings per Common Share from Discontinued Operations, net
of taxes reflect the impact of a net tax benefit of $33 million as
a result of the resolution of various tax positions from prior
years.
|
|
|
|
2016 Earnings and
Diluted Earnings per Common Share from Discontinued Operations, net
of taxes reflect the impact of a net tax benefit of $247 million as
a result of the resolution of various tax positions from prior
years.
|
|
|
5)
|
2017 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $457
million, or $0.26 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions, partially offset by a gain on the sale of
the AMO business.
|
|
|
|
2016 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $559
million, or $0.37 per share, for intangible amortization expense,
the foreign exchange loss related to Venezuela, and other expenses
primarily associated with cost reduction initiatives and
acquisitions, partially offset by the favorable impact of a net tax
benefit as a result of the resolution of various tax positions from
prior years.
|
NON-GAAP RECONCILIATION OF FINANCIAL INFORMATION FROM
CONTINUING OPERATIONS
|
Abbott Laboratories
and Subsidiaries
|
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
|
First Quarter Ended
March 31, 2017 and 2016
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
1Q17
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
Intangible
Amortization
|
|
$522
|
|
$(522)
|
|
--
|
|
|
Gross
Margin
|
|
2,769
|
|
984
|
|
$3,753
|
|
59.2%
|
R&D
|
|
547
|
|
(40)
|
|
507
|
|
8.0%
|
SG&A
|
|
2,424
|
|
(367)
|
|
2,057
|
|
32.5%
|
Interest expense,
net
|
|
204
|
|
(17)
|
|
187
|
|
|
Other (income)
expense, net
|
|
(1,126)
|
|
1,134
|
|
8
|
|
|
Earnings from
Continuing Operations before taxes
|
|
736
|
|
274
|
|
1,010
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
350
|
|
(183)
|
|
167
|
|
|
Net Earnings from
Continuing Operations
|
|
386
|
|
457
|
|
843
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.22
|
|
$0.26
|
|
$0.48
|
|
|
Specified items reflect intangible amortization expense of
$522 million and other expenses of
$903 million, primarily associated
with acquisitions, including approximately $390 million of inventory step-up amortization
related to St. Jude Medical, charges related to restructuring
actions and other expenses, partially offset by a gain of
$1.151 billion from the sale of the
AMO business.
|
|
1Q16
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
Intangible
Amortization
|
|
$144
|
|
$(144)
|
|
--
|
|
|
Gross
Margin
|
|
2,601
|
|
172
|
|
$2,773
|
|
56.8%
|
R&D
|
|
379
|
|
(45)
|
|
334
|
|
6.8%
|
SG&A
|
|
1,698
|
|
(43)
|
|
1,655
|
|
33.9%
|
Interest expense,
net
|
|
25
|
|
(12)
|
|
13
|
|
|
Net foreign exchange
(gain) loss
|
|
478
|
|
(477)
|
|
1
|
|
|
Other (income)
expense, net
|
|
19
|
|
(4)
|
|
15
|
|
|
Earnings from
Continuing Operations before taxes
|
|
2
|
|
753
|
|
755
|
|
|
Taxes on Earnings
from Continuing Operations
|
|
(54)
|
|
194
|
|
140
|
|
|
Net Earnings from
Continuing Operations
|
|
56
|
|
559
|
|
615
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.04
|
|
$0.37
|
|
$0.41
|
|
|
Specified items reflect intangible amortization expense of
$144 million, the impact of the
foreign exchange loss in Venezuela
of $477 million, and other expenses
of $132 million, primarily associated
with cost reduction initiatives and acquisitions, partially offset
by a net tax benefit of approximately $140
million as a result of the resolution of various tax
positions from prior years.
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
A
reconciliation of the first-quarter tax rates for continuing
operations for 2017 and 2016 is shown below:
|
|
|
1Q17
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$736
|
|
$350
|
|
47.6%
|
1)
|
Specified
items
|
|
274
|
|
(183)
|
|
|
|
Excluding
specified items
|
|
$1,010
|
|
$167
|
|
16.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q16
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$2
|
|
$(54)
|
|
n/m
|
2)
|
Specified
items
|
|
753
|
|
194
|
|
|
|
Excluding
specified items
|
|
$755
|
|
$140
|
|
18.6%
|
|
|
|
1)
|
Reported tax rate on
a GAAP basis for 2017 includes the impact of taxes associated with
a $1.151 billion pretax gain on the sale of the AMO
business.
|
2)
|
Reported tax rate on
a GAAP basis for 2016 includes the impact of a net tax benefit of
approximately $140 million as a result of the resolution of various
tax positions from prior years, partially offset by the unfavorable
impact of non-deductible foreign exchange losses related to
Venezuela.
|
Abbott Laboratories
and Subsidiaries
|
Non-GAAP
Reconciliation of Comparable Historical Revenue
|
First Quarter Ended
March 31, 2017 and 2016
|
($ in millions)
(unaudited)
|
|
|
|
1Q17
|
|
1Q16
|
|
% Change vs.
1Q16
|
|
|
Abbott
Reported
|
|
Divested
Businessesa)
|
|
Comparable
Revenue
|
|
Abbott
Reported
|
|
Acquired
St. Jude
Businessb)
|
|
AMO
|
|
Comparable
Revenue
|
|
|
|
Comparable
|
|
|
|
|
|
|
|
|
|
Reported
|
|
Reported
|
|
Operationalc)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
6,335
|
|
(187)
|
|
6,148
|
|
4,885
|
|
1,373
|
|
(269)
|
|
5,989
|
|
29.7
|
|
2.6
|
|
3.2
|
U.S.
|
|
2,324
|
|
(84)
|
|
2,240
|
|
1,531
|
|
733
|
|
(108)
|
|
2,156
|
|
51.8
|
|
3.9
|
|
3.9
|
Int'l
|
|
4,011
|
|
(103)
|
|
3,908
|
|
3,354
|
|
640
|
|
(161)
|
|
3,833
|
|
19.6
|
|
2.0
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Medical
Devices
|
|
2,395
|
|
(12)
|
|
2,383
|
|
1,197
|
|
1,373
|
|
(269)
|
|
2,301
|
|
100.2
|
|
3.6
|
|
4.5
|
U.S.
|
|
1,136
|
|
(6)
|
|
1,130
|
|
466
|
|
733
|
|
(108)
|
|
1,091
|
|
144.0
|
|
3.6
|
|
3.6
|
Int'l
|
|
1,259
|
|
(6)
|
|
1,253
|
|
731
|
|
640
|
|
(161)
|
|
1,210
|
|
72.2
|
|
3.6
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardiovascular and
Neuromodulation
|
2,103
|
|
(12)
|
|
2,091
|
|
685
|
|
1,373
|
|
--
|
|
2,058
|
|
207.0
|
|
1.6
|
|
2.4
|
U.S.
|
|
1,061
|
|
(6)
|
|
1,055
|
|
289
|
|
733
|
|
--
|
|
1,022
|
|
267.5
|
|
3.3
|
|
3.3
|
Int'l
|
|
1,042
|
|
(6)
|
|
1,036
|
|
396
|
|
640
|
|
--
|
|
1,036
|
|
163.0
|
|
--
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rhythm
Management
|
|
511
|
|
--
|
|
511
|
|
--
|
|
582
|
|
--
|
|
582
|
|
n/m
|
|
(12.2)
|
|
(11.6)
|
U.S.
|
|
260
|
|
--
|
|
260
|
|
--
|
|
317
|
|
--
|
|
317
|
|
n/m
|
|
(17.8)
|
|
(17.8)
|
Int'l
|
|
251
|
|
--
|
|
251
|
|
--
|
|
265
|
|
--
|
|
265
|
|
n/m
|
|
(5.5)
|
|
(4.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrophysiology
|
|
316
|
|
--
|
|
316
|
|
4
|
|
281
|
|
--
|
|
285
|
|
n/m
|
|
10.7
|
|
10.9
|
U.S.
|
|
145
|
|
--
|
|
145
|
|
4
|
|
128
|
|
--
|
|
132
|
|
n/m
|
|
10.1
|
|
10.1
|
Int'l
|
|
171
|
|
--
|
|
171
|
|
--
|
|
153
|
|
--
|
|
153
|
|
n/m
|
|
11.1
|
|
11.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heart
Failure
|
|
142
|
|
--
|
|
142
|
|
--
|
|
154
|
|
--
|
|
154
|
|
n/m
|
|
(7.4)
|
|
(6.9)
|
U.S.
|
|
109
|
|
--
|
|
109
|
|
--
|
|
121
|
|
--
|
|
121
|
|
n/m
|
|
(10.1)
|
|
(10.1)
|
Int'l
|
|
33
|
|
--
|
|
33
|
|
--
|
|
33
|
|
--
|
|
33
|
|
n/m
|
|
2.7
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular
|
|
703
|
|
(12)
|
|
691
|
|
601
|
|
96
|
|
--
|
|
697
|
|
16.9
|
|
(0.8)
|
|
0.1
|
U.S.
|
|
304
|
|
(6)
|
|
298
|
|
252
|
|
29
|
|
--
|
|
281
|
|
20.7
|
|
6.1
|
|
6.1
|
Int'l
|
|
399
|
|
(6)
|
|
393
|
|
349
|
|
67
|
|
--
|
|
416
|
|
14.2
|
|
(5.5)
|
|
(4.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural
Heart
|
|
256
|
|
--
|
|
256
|
|
80
|
|
144
|
|
--
|
|
224
|
|
221.0
|
|
14.2
|
|
15.5
|
U.S.
|
|
107
|
|
--
|
|
107
|
|
33
|
|
54
|
|
--
|
|
87
|
|
220.4
|
|
22.1
|
|
22.1
|
Int'l
|
|
149
|
|
--
|
|
149
|
|
47
|
|
90
|
|
--
|
|
137
|
|
221.5
|
|
9.1
|
|
11.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neuromodulation
|
|
175
|
|
--
|
|
175
|
|
--
|
|
116
|
|
--
|
|
116
|
|
n/m
|
|
51.0
|
|
51.5
|
U.S.
|
|
136
|
|
--
|
|
136
|
|
--
|
|
84
|
|
--
|
|
84
|
|
n/m
|
|
62.4
|
|
62.4
|
Int'l
|
|
39
|
|
--
|
|
39
|
|
--
|
|
32
|
|
--
|
|
32
|
|
n/m
|
|
21.2
|
|
22.8
|
|
|
a)
|
Reflects sales
related to the AMO and St. Jude Medical vascular closure businesses
prior to divesting in the first quarter 2017.
|
b)
|
Reflects reported
actuals for St. Jude Medical, excluding results from the vascular
closure business, as well as a reduction to St. Jude Medical sales
related to the reclassification of fees paid to group purchasing
organizations from the Selling, general, and administrative
line.
|
c)
|
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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/abbott-reports-first-quarter-2017-results-300441726.html
SOURCE Abbott