ABBOTT PARK, Ill., Oct. 16, 2019
/PRNewswire/ -- Abbott (NYSE: ABT) today announced financial
results for the third quarter ended Sept.
30, 2019.
- Third-quarter worldwide sales of $8.1
billion increased 5.5 percent on a reported basis and 7.6
percent on an organic* basis.
- Reported diluted EPS from continuing operations under GAAP was
$0.53 in the third quarter. Adjusted
diluted EPS from continuing operations, which excludes specified
items, was $0.84, an increase of 12.0
percent versus prior year1.
- Abbott narrowed its full-year 2019 outlook for diluted EPS from
continuing operations on a GAAP basis to $2.06 to $2.08, and
full-year adjusted diluted EPS from continuing operations to
$3.23 to $3.25, reflecting 12.5 percent growth versus the
prior year at the midpoint of the range2.
- FreeStyle Libre® achieved worldwide sales of
$496 million in the quarter, an
increase of 63.1 percent on a reported basis and 67.6 percent on an
organic basis versus the prior year.
- During the third quarter, FreeStyle Libre obtained public
reimbursement coverage in Ontario
and Quebec, becoming the first and
only sensor-based glucose monitoring system to be listed by any
provincial health plan in Canada.
- Worldwide sales of MitraClip® were $176 million in the quarter, an increase of 30.4
percent on a reported basis and 31.9 percent on an organic basis,
including U.S. growth of 45.7 percent versus the prior year. During
the third quarter, Abbott announced U.S. FDA approval of its
next-generation MitraClip device, which offers enhancements and
more sizes to offer doctors further options.
- In September, Abbott announced data from its
COAPT™ Trial that shows that MitraClip is projected to
increase life-expectancy and quality of life compared to
guideline-directed medical therapy alone in heart failure patients
with secondary mitral regurgitation, or a leaky mitral heart
valve.
- During the third quarter, Abbott received U.S. FDA approval for
its Alinity®-S diagnostics system, the latest technology
for screening and protecting the U.S. blood and plasma supply.
"We're performing exceptionally well across several areas," said
Miles D. White, chairman and chief
executive officer, Abbott. "We're right on track to achieve ongoing
EPS and organic sales growth at the upper-end of our initial
guidance ranges for the year."
* See note on organic growth below.
THIRD-QUARTER BUSINESS OVERVIEW
Note: Management
believes that measuring sales growth rates on an organic basis is
an appropriate way for investors to best understand the underlying
performance of the business.
Organic sales growth:
- Excludes the prior year first, second and third-quarter
results for a non-core business within U.S. Adult Nutrition, which
was discontinued during the third quarter 2018; and
- Excludes the impact of foreign exchange.
Following are sales by business segment and commentary for
the third quarter:
Total
Company
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q18
|
|
|
Sales
3Q19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
2,834
|
|
5,242
|
|
8,076
|
|
4.7
|
|
5.9
|
|
5.5
|
|
5.0
|
|
8.9
|
|
7.6
|
Nutrition
|
|
788
|
|
1,086
|
|
1,874
|
|
1.8
|
|
2.1
|
|
2.0
|
|
3.0
|
|
4.4
|
|
3.8
|
Diagnostics
|
|
702
|
|
1,207
|
|
1,909
|
|
5.6
|
|
4.2
|
|
4.7
|
|
5.6
|
|
7.2
|
|
6.6
|
Established
Pharmaceuticals
|
|
--
|
|
1,212
|
|
1,212
|
|
n/a
|
|
4.4
|
|
4.4
|
|
n/a
|
|
7.9
|
|
7.9
|
Medical
Devices
|
|
1,335
|
|
1,730
|
|
3,065
|
|
6.1
|
|
11.1
|
|
8.9
|
|
6.1
|
|
14.3
|
|
10.6
|
|
* Total Q3 2019
Abbott sales from continuing operations include Other Sales of $16
million.
|
|
|
|
|
|
|
|
|
% Change vs.
9M18
|
|
|
Sales
9M19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
8,438
|
|
15,152
|
|
23,590
|
|
4.4
|
|
2.9
|
|
3.4
|
|
4.9
|
|
8.7
|
|
7.4
|
Nutrition
|
|
2,321
|
|
3,220
|
|
5,541
|
|
0.3
|
|
2.6
|
|
1.6
|
|
2.0
|
|
7.4
|
|
5.2
|
Diagnostics
|
|
2,121
|
|
3,534
|
|
5,655
|
|
5.1
|
|
0.5
|
|
2.2
|
|
5.1
|
|
6.1
|
|
5.7
|
Established
Pharmaceuticals
|
|
--
|
|
3,312
|
|
3,312
|
|
n/a
|
|
(0.6)
|
|
(0.6)
|
|
n/a
|
|
6.5
|
|
6.5
|
Medical
Devices
|
|
3,970
|
|
5,065
|
|
9,035
|
|
6.5
|
|
7.2
|
|
6.9
|
|
6.5
|
|
13.1
|
|
10.2
|
|
* Total 9M 2019
Abbott sales from continuing operations include Other Sales of $47
million.
|
|
n/a = Not
Applicable.
|
|
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.
|
Third-quarter 2019 worldwide sales of $8.1 billion increased 5.5 percent on a reported
basis. On an organic basis, worldwide sales increased 7.6 percent.
Refer to tables titled "Non-GAAP Reconciliation of Adjusted
Historical Revenue" for a reconciliation of adjusted historical
revenue.
Nutrition
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q18
|
|
|
Sales
3Q19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
788
|
|
1,086
|
|
1,874
|
|
1.8
|
|
2.1
|
|
2.0
|
|
3.0
|
|
4.4
|
|
3.8
|
Pediatric
|
|
478
|
|
566
|
|
1,044
|
|
4.1
|
|
(2.4)
|
|
0.5
|
|
4.1
|
|
(0.7)
|
|
1.4
|
Adult
|
|
310
|
|
520
|
|
830
|
|
(1.5)
|
|
7.5
|
|
3.9
|
|
1.3
|
|
10.4
|
|
6.9
|
|
|
|
|
|
|
|
|
|
% Change vs.
9M18
|
|
|
Sales
9M19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
2,321
|
|
3,220
|
|
5,541
|
|
0.3
|
|
2.6
|
|
1.6
|
|
2.0
|
|
7.4
|
|
5.2
|
Pediatric
|
|
1,406
|
|
1,718
|
|
3,124
|
|
2.2
|
|
0.6
|
|
1.3
|
|
2.2
|
|
4.8
|
|
3.6
|
Adult
|
|
915
|
|
1,502
|
|
2,417
|
|
(2.4)
|
|
4.9
|
|
2.0
|
|
1.8
|
|
10.6
|
|
7.2
|
Worldwide Nutrition sales increased 2.0 percent on a reported
basis in the third quarter. On an organic basis, sales increased
3.8 percent. Refer to tables titled "Non-GAAP Reconciliation of
Adjusted Historical Revenue" for a reconciliation of adjusted
historical revenue.
Worldwide Pediatric Nutrition sales increased 0.5 percent on a
reported basis in the third quarter, including an unfavorable 0.9
percent effect of foreign exchange, and increased 1.4 percent on an
organic basis. In the U.S., sales growth was led by Abbott's
market-leading toddler brands, PediaSure® and
Pedialyte®. International sales declined 2.4 percent on
a reported basis and 0.7 percent on an organic basis, driven by
challenging market dynamics in Greater
China, partially offset by growth across several countries
in Southeast Asia and Latin America.
Worldwide Adult Nutrition sales increased 3.9 percent on a
reported basis in the third quarter and increased 6.9 percent on an
organic basis. International Adult Nutrition sales increased 7.5
percent on a reported basis and 10.4 percent on an organic basis in
the third quarter. Sales performance in the quarter was led by
strong growth of Ensure®, Abbott's market-leading
complete and balanced nutrition brand, and Glucerna®,
Abbott's market-leading diabetes-specific nutrition brand.
Diagnostics
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q18
|
|
|
Sales
3Q19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
702
|
|
1,207
|
|
1,909
|
|
5.6
|
|
4.2
|
|
4.7
|
|
5.6
|
|
7.2
|
|
6.6
|
Core
Laboratory
|
|
272
|
|
905
|
|
1,177
|
|
9.0
|
|
8.1
|
|
8.3
|
|
9.0
|
|
11.1
|
|
10.6
|
Molecular
|
|
35
|
|
76
|
|
111
|
|
(6.6)
|
|
(8.3)
|
|
(7.8)
|
|
(6.6)
|
|
(6.3)
|
|
(6.4)
|
Point of
Care
|
|
112
|
|
32
|
|
144
|
|
7.0
|
|
4.1
|
|
6.3
|
|
7.0
|
|
5.6
|
|
6.7
|
Rapid
Diagnostics
|
|
283
|
|
194
|
|
477
|
|
3.6
|
|
(6.4)
|
|
(0.7)
|
|
3.6
|
|
(2.8)
|
|
0.8
|
|
|
|
|
|
|
|
|
% Change vs.
9M18
|
|
|
Sales
9M19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
2,121
|
|
3,534
|
|
5,655
|
|
5.1
|
|
0.5
|
|
2.2
|
|
5.1
|
|
6.1
|
|
5.7
|
Core
Laboratory
|
|
793
|
|
2,614
|
|
3,407
|
|
9.3
|
|
4.2
|
|
5.4
|
|
9.3
|
|
10.1
|
|
10.0
|
Molecular
|
|
113
|
|
213
|
|
326
|
|
(1.0)
|
|
(13.5)
|
|
(9.5)
|
|
(1.0)
|
|
(9.7)
|
|
(7.0)
|
Point of
Care
|
|
334
|
|
90
|
|
424
|
|
3.5
|
|
(2.7)
|
|
2.1
|
|
3.5
|
|
(0.3)
|
|
2.6
|
Rapid
Diagnostics
|
|
881
|
|
617
|
|
1,498
|
|
3.0
|
|
(7.7)
|
|
(1.7)
|
|
3.0
|
|
(2.4)
|
|
0.6
|
Worldwide Diagnostics sales increased 4.7 percent on a reported
basis in the third quarter, including an unfavorable 1.9 percent
effect of foreign exchange, and increased 6.6 percent on an organic
basis.
Core Laboratory Diagnostics sales increased 8.3 percent on a
reported basis and 10.6 percent on an organic basis in the third
quarter. Sales performance was led by above-market growth in the
U.S. and internationally, where Abbott is achieving continued
strong adoption of its Alinity family of innovative and highly
differentiated diagnostic instruments. During the third quarter,
Abbott received U.S. FDA approval for its Alinity-S blood and
plasma screening diagnostics instrument and several testing
assays.
Molecular Diagnostics sales decreased 7.8 percent on a reported
basis in the third quarter, including an unfavorable 1.4 percent
effect of foreign exchange, and decreased 6.4 percent on an organic
basis. Internationally, sales growth in the quarter was negatively
impacted by lower non-governmental organization purchases in
Africa.
Point of Care Diagnostics sales increased 6.3 percent on a
reported basis in the third quarter, including an unfavorable 0.4
percent effect of foreign exchange, and increased 6.7 percent on an
organic basis. Sales growth was led by Abbott's market-leading
i-STAT® handheld system in the U.S. and
internationally.
Rapid Diagnostics sales decreased 0.7 percent on a reported
basis in the third quarter, including an unfavorable 1.5 percent
effect of foreign exchange, and increased 0.8 percent on an organic
basis. Organic sales growth was led by infectious disease testing
in developed markets and cardio-metabolic testing globally,
partially offset by lower than expected infectious disease testing
sales in Africa.
Established
Pharmaceuticals
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q18
|
|
|
Sales
3Q19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
--
|
|
1,212
|
|
1,212
|
|
n/a
|
|
4.4
|
|
4.4
|
|
n/a
|
|
7.9
|
|
7.9
|
Key Emerging
Markets
|
|
--
|
|
891
|
|
891
|
|
n/a
|
|
2.8
|
|
2.8
|
|
n/a
|
|
6.8
|
|
6.8
|
Other
|
|
--
|
|
321
|
|
321
|
|
n/a
|
|
9.2
|
|
9.2
|
|
n/a
|
|
10.9
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change vs.
9M18
|
|
|
Sales
9M19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
--
|
|
3,312
|
|
3,312
|
|
n/a
|
|
(0.6)
|
|
(0.6)
|
|
n/a
|
|
6.5
|
|
6.5
|
Key Emerging
Markets
|
|
--
|
|
2,496
|
|
2,496
|
|
n/a
|
|
(1.2)
|
|
(1.2)
|
|
n/a
|
|
7.4
|
|
7.4
|
Other
|
|
--
|
|
816
|
|
816
|
|
n/a
|
|
1.0
|
|
1.0
|
|
n/a
|
|
3.7
|
|
3.7
|
Established Pharmaceuticals sales increased 4.4 percent on a
reported basis in the third quarter, including an unfavorable 3.5
percent effect of foreign exchange, and increased 7.9 percent on an
organic basis.
Key Emerging Markets include India, Brazil, Russia 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 geographies increased 2.8 percent on a reported
basis in the third quarter and increased 6.8 percent on an organic
basis, which excludes an unfavorable 4.0 percent effect of foreign
exchange. Organic sales growth was led by strong growth across
several geographies, including India, China
and Brazil.
Other sales increased 9.2 percent on a reported basis in the
third quarter, including an unfavorable 1.7 percent effect of
foreign exchange, and increased 10.9 percent on an organic
basis.
Medical
Devices
($ in
millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
3Q18
|
|
|
Sales
3Q19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,335
|
|
1,730
|
|
3,065
|
|
6.1
|
|
11.1
|
|
8.9
|
|
6.1
|
|
14.3
|
|
10.6
|
Cardiovascular and
Neuromodulation
|
|
1,160
|
|
1,240
|
|
2,400
|
|
2.4
|
|
6.0
|
|
4.2
|
|
2.4
|
|
8.8
|
|
5.6
|
Rhythm
Management
|
|
265
|
|
273
|
|
538
|
|
(2.3)
|
|
4.2
|
|
0.9
|
|
(2.3)
|
|
7.5
|
|
2.5
|
Electrophysiology
|
|
185
|
|
242
|
|
427
|
|
9.8
|
|
14.1
|
|
12.2
|
|
9.8
|
|
16.1
|
|
13.3
|
Heart
Failure
|
|
136
|
|
50
|
|
186
|
|
21.9
|
|
23.1
|
|
22.2
|
|
21.9
|
|
26.9
|
|
23.2
|
Vascular
|
|
251
|
|
446
|
|
697
|
|
(11.7)
|
|
2.3
|
|
(3.2)
|
|
(11.7)
|
|
4.6
|
|
(1.8)
|
Structural
Heart
|
|
158
|
|
190
|
|
348
|
|
25.2
|
|
6.3
|
|
14.1
|
|
25.2
|
|
9.6
|
|
16.0
|
Neuromodulation
|
|
165
|
|
39
|
|
204
|
|
(3.7)
|
|
(3.5)
|
|
(3.7)
|
|
(3.7)
|
|
1.3
|
|
(2.8)
|
Diabetes
Care
|
|
175
|
|
490
|
|
665
|
|
39.5
|
|
26.5
|
|
29.6
|
|
39.5
|
|
31.1
|
|
33.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary and
Endovasculara)
|
|
229
|
|
442
|
|
671
|
|
(7.6)
|
|
2.0
|
|
(1.5)
|
|
(7.6)
|
|
4.2
|
|
(0.1)
|
|
|
a)
|
Includes drug-eluting
stents, balloon catheters, guidewires, vascular imaging/diagnostics
products, vessel closure,
|
|
carotid and other
coronary and peripheral products.
|
|
|
|
|
|
|
|
|
% Change vs.
9M18
|
|
|
Sales
9M19
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
3,970
|
|
5,065
|
|
9,035
|
|
6.5
|
|
7.2
|
|
6.9
|
|
6.5
|
|
13.1
|
|
10.2
|
Cardiovascular and
Neuromodulation
|
|
3,485
|
|
3,717
|
|
7,202
|
|
2.4
|
|
2.0
|
|
2.2
|
|
2.4
|
|
7.4
|
|
5.0
|
Rhythm
Management
|
|
790
|
|
810
|
|
1,600
|
|
(6.3)
|
|
(1.7)
|
|
(4.0)
|
|
(6.3)
|
|
4.0
|
|
(1.2)
|
Electrophysiology
|
|
549
|
|
713
|
|
1,262
|
|
10.1
|
|
10.5
|
|
10.3
|
|
10.1
|
|
15.4
|
|
13.1
|
Heart
Failure
|
|
428
|
|
143
|
|
571
|
|
25.1
|
|
13.6
|
|
22.0
|
|
25.1
|
|
19.2
|
|
23.5
|
Vascular
|
|
787
|
|
1,349
|
|
2,136
|
|
(7.8)
|
|
(0.5)
|
|
(3.3)
|
|
(7.8)
|
|
4.4
|
|
(0.3)
|
Structural
Heart
|
|
446
|
|
578
|
|
1,024
|
|
26.3
|
|
3.2
|
|
12.1
|
|
26.3
|
|
9.3
|
|
15.9
|
Neuromodulation
|
|
485
|
|
124
|
|
609
|
|
(5.4)
|
|
(6.9)
|
|
(5.7)
|
|
(5.4)
|
|
-
|
|
(4.3)
|
Diabetes
Care
|
|
485
|
|
1,348
|
|
1,833
|
|
50.3
|
|
24.8
|
|
30.6
|
|
50.3
|
|
32.4
|
|
36.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vascular Product
Lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary and
Endovasculara)
|
|
708
|
|
1,341
|
|
2,049
|
|
(4.2)
|
|
(0.3)
|
|
(1.7)
|
|
(4.2)
|
|
4.5
|
|
1.4
|
|
|
a)
|
Includes drug-eluting
stents, balloon catheters, guidewires, vascular imaging/diagnostics
products, vessel closure,
|
|
carotid and other
coronary and peripheral products.
|
|
|
Note: Insertable
Cardiac Monitor (ICM) sales, which had previously been reported in
Electrophysiology, are now included in Rhythm Management.
Historical periods have been adjusted to reflect this
change.
|
Worldwide Medical Devices sales increased 8.9 percent on a
reported basis in the third quarter and increased 10.6 percent on
an organic basis, led by double-digit growth in Electrophysiology,
Heart Failure, Structural Heart and Diabetes Care.
In Electrophysiology, growth was led by strong performance in
cardiac diagnostic and ablation catheters, which are used to help
physicians accurately and effectively treat atrial fibrillation, a
form of irregular heartbeat.
In Heart Failure, strong double-digit growth was driven by
market adoption of Abbott's HeartMate 3® left
ventricular assist device, which has been shown to improve survival
and clinical outcomes in patients with advanced heart failure.
Growth in Structural Heart was led by MitraClip, Abbott's
market-leading device for the minimally invasive treatment of
mitral regurgitation, or a leaky mitral heart valve. In the third
quarter, Abbott announced U.S. FDA approval of its next-generation
MitraClip device, MitraClip G4, which offers an expanded range of
clip sizes, an alternative leaflet grasping feature and
facilitation of procedure assessment in real time to offer doctors
further options when treating mitral valve disease.
In Diabetes Care, sales increased 29.6 percent on a reported
basis and 33.1 percent on an organic basis in the third quarter.
Sales growth in the quarter was led by FreeStyle Libre, Abbott's
revolutionary continuous glucose monitoring system, with worldwide
sales of $496 million, an increase of
63.1 percent on a reported basis and 67.6 percent on an organic
basis versus the prior year. During the third quarter, FreeStyle
Libre obtained public reimbursement coverage in Ontario and Quebec, becoming the first and only
sensor-based glucose monitoring system to be listed by any
provincial health plan in Canada.
ABBOTT'S GUIDANCE FOR 2019
Abbott is narrowing its guidance for 2019 diluted earnings per
share from continuing operations under Generally Accepted
Accounting Principles (GAAP) to $2.06
to $2.08. Abbott forecasts net
specified items for the full year 2019 of $1.17 per share. Specified items include
intangible amortization expense, acquisition-related expenses,
charges associated with cost reduction initiatives and other
expenses. Excluding specified items, projected adjusted diluted
earnings per share from continuing operations would be $3.23 to $3.25 for
the full year 2019.
Abbott is issuing fourth-quarter 2019 guidance for diluted
earnings per share from continuing operations under GAAP of
$0.59 to $0.61. Abbott forecasts specified items for the
fourth quarter 2019 of $0.35 per
share primarily related to intangible amortization,
acquisition-related expenses, cost reduction initiatives and other
expenses. Excluding specified items, projected adjusted diluted
earnings per share from continuing operations would be $0.94 to $0.96 for
the fourth quarter.
ABBOTT DECLARES 383RD CONSECUTIVE QUARTERLY
DIVIDEND
On Sept. 12, 2019, the board of
directors of Abbott declared the company's quarterly dividend of
$0.32 per share. Abbott's cash
dividend is payable Nov. 15, 2019, to
shareholders of record at the close of business on Oct. 15, 2019.
Abbott has increased its dividend payout for 47 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 103,000 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 and
@AbbottGlobal.
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 webcast 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, 2018, 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.
1
Third-quarter 2019 diluted EPS from
continuing operations on a GAAP basis reflects 71.0 percent
growth.
|
|
2
Full-year 2019 outlook for diluted EPS
from continuing operations on a GAAP basis reflects 58.0 percent
growth at the midpoint of the range.
|
Abbott Laboratories
and Subsidiaries
Condensed
Consolidated Statement of Earnings
Third Quarter Ended
September 30, 2019 and 2018
(in millions, except
per share data)
(unaudited)
|
|
|
|
3Q19
|
|
3Q18
|
|
%
Change
|
|
Net Sales
|
|
$8,076
|
|
$7,656
|
|
5.5
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
3,358
|
|
3,166
|
|
6.1
|
|
Amortization of
intangible assets
|
|
484
|
|
544
|
|
(11.0)
|
|
Research and
development
|
|
596
|
|
574
|
|
3.7
|
|
Selling, general, and
administrative
|
|
2,440
|
|
2,377
|
|
2.7
|
|
Total Operating Cost
and Expenses
|
|
6,878
|
|
6,661
|
|
3.3
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
|
1,198
|
|
995
|
|
20.5
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
143
|
|
181
|
|
(21.0)
|
|
Net foreign exchange
(gain) loss
|
|
7
|
|
11
|
|
(36.0)
|
|
Debt extinguishment
costs
|
|
--
|
|
67
|
|
n/m
|
|
Other (income)
expense, net
|
|
(55)
|
|
18
|
|
n/m
|
|
Earnings from
Continuing Operations before taxes
|
|
1,103
|
|
718
|
|
53.7
|
|
|
|
|
|
|
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
143
|
|
166
|
|
(13.4)
|
|
Earnings from
Continuing Operations
|
|
960
|
|
552
|
|
73.9
|
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
|
--
|
|
11
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$960
|
|
$563
|
|
70.3
|
|
|
|
|
|
|
|
|
|
Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$1,514
|
|
$1,342
|
|
12.8
|
1)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$0.53
|
|
$0.31
|
|
71.0
|
|
Discontinued
Operations
|
|
--
|
|
0.01
|
|
n/m
|
|
Total
|
|
$0.53
|
|
$0.32
|
|
65.6
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing Operations, excluding Specified Items, as described
below
|
|
$0.84
|
|
$0.75
|
|
12.0
|
1)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,784
|
|
1,772
|
|
|
|
|
NOTES:
|
See tables titled
"Non-GAAP Reconciliation of Financial Information From Continuing
Operations" for an explanation of certain non-GAAP financial
information.
|
n/m = Percent change
is not meaningful.
|
See footnotes
below.
|
|
|
1)
|
2019 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $554
million, or $0.31 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
|
|
|
2018 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $790
million, or $0.44 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
Abbott Laboratories
and Subsidiaries
Condensed
Consolidated Statement of Earnings
Nine Months Ended
September 30, 2019 and 2018
(in millions, except
per share data)
(unaudited)
|
|
|
9M19
|
|
9M18
|
|
%
Change
|
|
Net Sales
|
|
$23,590
|
|
$22,813
|
|
3.4
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
9,797
|
|
9,515
|
|
3.0
|
|
Amortization of
intangible assets
|
|
1,453
|
|
1,690
|
|
(14.0)
|
|
Research and
development
|
|
1,845
|
|
1,738
|
|
6.1
|
1)
|
Selling, general, and
administrative
|
|
7,352
|
|
7,385
|
|
(0.4)
|
|
Total Operating Cost
and Expenses
|
|
20,447
|
|
20,328
|
|
0.6
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
|
3,143
|
|
2,485
|
|
26.5
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
437
|
|
569
|
|
(23.2)
|
|
Net foreign exchange
(gain) loss
|
|
9
|
|
2
|
|
n/m
|
|
Debt extinguishment
costs
|
|
--
|
|
81
|
|
n/m
|
|
Other (income)
expense, net
|
|
(140)
|
|
(93)
|
|
50.4
|
|
Earnings from
Continuing Operations before taxes
|
|
2,837
|
|
1,926
|
|
47.3
|
|
|
|
|
|
|
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
199
|
|
247
|
|
(19.4)
|
2)
|
Earnings from
Continuing Operations
|
|
2,638
|
|
1,679
|
|
57.1
|
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
|
--
|
|
35
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$2,638
|
|
$1,714
|
|
53.9
|
|
|
|
|
|
|
|
|
|
Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$4,105
|
|
$3,687
|
|
11.3
|
3)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$1.47
|
|
$0.94
|
|
56.4
|
|
Discontinued
Operations
|
|
--
|
|
0.02
|
|
n/m
|
|
Total
|
|
$1.47
|
|
$0.96
|
|
53.1
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing Operations, excluding Specified Items, as described
below
|
|
$2.29
|
|
$2.07
|
|
10.6
|
3)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,781
|
|
1,769
|
|
|
|
|
NOTES:
|
See tables titled
"Non-GAAP Reconciliation of Financial Information From Continuing
Operations" for an explanation of certain non-GAAP financial
information.
|
n/m = Percent change
is not meaningful.
|
See footnotes
below.
|
|
|
|
|
1)
|
In the first nine
months of 2019, in conjunction with the acquisition of Cephea Valve
Technologies, Inc., Abbott acquired an R&D asset valued at $102
million, which was immediately expensed.
|
|
|
2)
|
2019 Tax expense on
Earnings from Continuing Operations includes the impact of a $78
million reduction of the transition tax associated with the Tax
Cuts and Jobs Act (TCJA) and approximately $95 million in excess
tax benefits associated with share-based compensation.
|
|
|
|
2018 Tax expense on
Earnings from Continuing Operations includes the impact of
approximately $80 million in excess tax benefits associated with
share-based compensation.
|
|
|
3)
|
2019 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $1.467
billion, or $0.82 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
|
|
|
2018 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $2.008
billion, or $1.13 per share, for intangible amortization expense
and other expenses primarily associated with acquisitions and
restructuring actions.
|
Abbott Laboratories
and Subsidiaries
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
Third Quarter Ended
September 30, 2019 and 2018
(in millions, except
per share data)
(unaudited)
|
|
|
3Q19
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
484
|
|
(484)
|
|
--
|
|
|
Gross
Margin
|
|
4,234
|
|
546
|
|
4,780
|
|
59.2%
|
R&D
|
|
596
|
|
(32)
|
|
564
|
|
7.0%
|
SG&A
|
|
2,440
|
|
(87)
|
|
2,353
|
|
29.1%
|
Other (income)
expense, net
|
|
(55)
|
|
(3)
|
|
(58)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
1,103
|
|
668
|
|
1,771
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
143
|
|
114
|
|
257
|
|
|
Earnings from
Continuing Operations
|
|
960
|
|
554
|
|
1,514
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.53
|
|
$0.31
|
|
$0.84
|
|
|
|
Specified items
reflect intangible amortization expense of $484 million and other
expenses of $184 million, primarily associated with acquisitions,
restructuring actions and other expenses. See tables titled
"Details of Specified Items" for additional details regarding
specified items.
|
|
|
|
3Q18
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$544
|
|
$(544)
|
|
--
|
|
|
Gross
Margin
|
|
3,946
|
|
609
|
|
$4,555
|
|
59.5%
|
R&D
|
|
574
|
|
(18)
|
|
556
|
|
7.3%
|
SG&A
|
|
2,377
|
|
(105)
|
|
2,272
|
|
29.7%
|
Debt extinguishment
costs
|
|
67
|
|
(67)
|
|
--
|
|
|
Other (income)
expense, net
|
|
18
|
|
(52)
|
|
(34)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
718
|
|
851
|
|
1,569
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
166
|
|
61
|
|
227
|
|
|
Earnings from
Continuing Operations
|
|
552
|
|
790
|
|
1,342
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.31
|
|
$0.44
|
|
$0.75
|
|
|
|
Specified items
reflect intangible amortization expense of $544 million and other
expenses of $307 million, primarily associated with acquisitions,
restructuring actions and other expenses. See tables titled
"Details of Specified Items" for additional details regarding
specified items.
|
Abbott Laboratories
and Subsidiaries
Non-GAAP
Reconciliation of Financial Information From Continuing
Operations
Nine Months Ended
September 30, 2019 and 2018
(in millions, except
per share data)
(unaudited)
|
|
|
9M19
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
1,453
|
|
(1,453)
|
|
--
|
|
|
Gross
Margin
|
|
12,340
|
|
1,595
|
|
13,935
|
|
59.1%
|
R&D
|
|
1,845
|
|
(159)
|
|
1,686
|
|
7.1%
|
SG&A
|
|
7,352
|
|
(178)
|
|
7,174
|
|
30.4%
|
Other (income)
expense, net
|
|
(140)
|
|
(32)
|
|
(172)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
2,837
|
|
1,964
|
|
4,801
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
199
|
|
497
|
|
696
|
|
|
Earnings from
Continuing Operations
|
|
2,638
|
|
1,467
|
|
4,105
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$1.47
|
|
$0.82
|
|
$2.29
|
|
|
|
Specified items
reflect intangible amortization expense of $1.453 billion and other
expenses of $511 million, primarily associated with acquisitions,
restructuring actions and other expenses. See tables titled
"Details of Specified Items" for additional details regarding
specified items.
|
|
|
|
9M18
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$1,690
|
|
$(1,690)
|
|
--
|
|
|
Gross
Margin
|
|
11,608
|
|
1,933
|
|
$13,541
|
|
59.4%
|
R&D
|
|
1,738
|
|
(85)
|
|
1,653
|
|
7.2%
|
SG&A
|
|
7,385
|
|
(274)
|
|
7,111
|
|
31.2%
|
Interest expense,
net
|
|
569
|
|
(2)
|
|
567
|
|
|
Net foreign exchange
(gain) loss
|
|
2
|
|
(1)
|
|
1
|
|
|
Debt extinguishment
costs
|
|
81
|
|
(81)
|
|
--
|
|
|
Other (income)
expense, net
|
|
(93)
|
|
(10)
|
|
(103)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
1,926
|
|
2,386
|
|
4,312
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
247
|
|
378
|
|
625
|
|
|
Earnings from
Continuing Operations
|
|
1,679
|
|
2,008
|
|
3,687
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.94
|
|
$1.13
|
|
$2.07
|
|
|
|
Specified items
reflect intangible amortization expense of $1.690 billion and other
expenses of $696 million, primarily associated with acquisitions,
restructuring actions and other expenses. See tables titled
"Details of Specified Items" for additional details regarding
specified items.
|
A reconciliation of the third-quarter tax rates for continuing
operations for 2019 and 2018 is shown below:
|
|
|
3Q19
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
As reported
(GAAP)
|
|
$1,103
|
|
$143
|
|
13.0%
|
Specified
items
|
|
668
|
|
114
|
|
|
Excluding
specified items
|
|
$1,771
|
|
$257
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
|
|
3Q18
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
As reported
(GAAP)
|
|
$718
|
|
$166
|
|
23.1%
|
Specified
items
|
|
851
|
|
61
|
|
|
Excluding
specified items
|
|
$1,569
|
|
$227
|
|
14.5%
|
A reconciliation of the year-to-date tax rates for continuing
operations for 2019 and 2018 is shown below:
|
|
|
9M19
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$2,837
|
|
$199
|
|
7.0%
|
1)
|
Specified
items
|
|
1,964
|
|
497
|
|
|
|
Excluding
specified items
|
|
$4,801
|
|
$696
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9M18
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$1,926
|
|
$247
|
|
12.8%
|
2)
|
Specified
items
|
|
2,386
|
|
378
|
|
|
|
Excluding
specified items
|
|
$4,312
|
|
$625
|
|
14.5%
|
|
|
|
1)
|
Reported tax rate on
a GAAP basis for 2019 includes the impact of a $78 million
reduction of the transition tax associated with the TCJA and
approximately $95 million in excess tax benefits associated with
share-based compensation.
|
|
|
2)
|
Reported tax rate on
a GAAP basis for 2018 includes the impact of approximately $80
million in excess tax benefits associated with share-based
compensation.
|
Abbott Laboratories
and Subsidiaries
Non-GAAP
Reconciliation of Adjusted Historical Revenue
Third Quarter Ended
September 30, 2019 and 2018
($ in millions)
(unaudited)
|
|
|
|
3Q19
|
|
3Q18
|
|
% Change vs.
3Q18
|
|
|
Abbott
Reported
|
|
|
Abbott
Reported
|
|
Discontinued
Businessa)
|
|
Adjusted
Revenue
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Reported
|
|
Reported
|
|
Organicb)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
8,076
|
|
|
7,656
|
|
(8)
|
|
7,648
|
|
5.5
|
|
5.6
|
|
7.6
|
U.S.
|
|
2,834
|
|
|
2,707
|
|
(8)
|
|
2,699
|
|
4.7
|
|
5.0
|
|
5.0
|
Int'l
|
|
5,242
|
|
|
4,949
|
|
--
|
|
4,949
|
|
5.9
|
|
5.9
|
|
8.9
|
Total
Nutrition
|
|
1,874
|
|
|
1,838
|
|
(8)
|
|
1,830
|
|
2.0
|
|
2.5
|
|
3.8
|
U.S.
|
|
788
|
|
|
774
|
|
(8)
|
|
766
|
|
1.8
|
|
3.0
|
|
3.0
|
Int'l
|
|
1,086
|
|
|
1,064
|
|
--
|
|
1,064
|
|
2.1
|
|
2.1
|
|
4.4
|
Adult
|
|
830
|
|
|
799
|
|
(8)
|
|
791
|
|
3.9
|
|
5.1
|
|
6.9
|
U.S.
|
|
310
|
|
|
315
|
|
(8)
|
|
307
|
|
(1.5)
|
|
1.3
|
|
1.3
|
Int'l
|
|
520
|
|
|
484
|
|
--
|
|
484
|
|
7.5
|
|
7.5
|
|
10.4
|
|
|
a)
|
Reflects sales
related to a non-core product line within the U.S. Adult Nutrition
business, which was discontinued during the third quarter
2018.
|
|
|
b)
|
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.
|
Abbott Laboratories
and Subsidiaries
Non-GAAP
Reconciliation of Adjusted Historical Revenue
Nine Months Ended
September 30, 2019 and 2018
($ in millions)
(unaudited)
|
|
|
|
9M19
|
|
9M18
|
|
% Change vs.
9M18
|
|
|
Abbott
Reported
|
|
|
Abbott
Reported
|
|
Discontinued
Businessa)
|
|
Adjusted
Revenue
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Reported
|
|
Reported
|
|
Organicb)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
23,590
|
|
|
22,813
|
|
(38)
|
|
22,775
|
|
3.4
|
|
3.6
|
|
7.4
|
U.S.
|
|
8,438
|
|
|
8,084
|
|
(38)
|
|
8,046
|
|
4.4
|
|
4.9
|
|
4.9
|
Int'l
|
|
15,152
|
|
|
14,729
|
|
--
|
|
14,729
|
|
2.9
|
|
2.9
|
|
8.7
|
Total
Nutrition
|
|
5,541
|
|
|
5,452
|
|
(38)
|
|
5,414
|
|
1.6
|
|
2.4
|
|
5.2
|
U.S.
|
|
2,321
|
|
|
2,313
|
|
(38)
|
|
2,275
|
|
0.3
|
|
2.0
|
|
2.0
|
Int'l
|
|
3,220
|
|
|
3,139
|
|
--
|
|
3,139
|
|
2.6
|
|
2.6
|
|
7.4
|
Adult
|
|
2,417
|
|
|
2,368
|
|
(38)
|
|
2,330
|
|
2.0
|
|
3.7
|
|
7.2
|
U.S.
|
|
915
|
|
|
937
|
|
(38)
|
|
899
|
|
(2.4)
|
|
1.8
|
|
1.8
|
Int'l
|
|
1,502
|
|
|
1,431
|
|
--
|
|
1,431
|
|
4.9
|
|
4.9
|
|
10.6
|
|
|
a)
|
Reflects sales
related to a non-core product line within the U.S. Adult Nutrition
business, which was discontinued during the third quarter
2018.
|
|
|
b)
|
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.
|
Abbott Laboratories
and Subsidiaries
Details of Specified
Items
Third Quarter Ended
September 30, 2019
(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
|
|
$ 32
|
|
$ 30
|
|
$ 484
|
|
$ --
|
|
$ 546
|
R&D
|
|
(9)
|
|
(12)
|
|
--
|
|
(11)
|
|
(32)
|
SG&A
|
|
(27)
|
|
(43)
|
|
--
|
|
(17)
|
|
(87)
|
Other (income)
expense, net
|
|
--
|
|
--
|
|
--
|
|
(3)
|
|
(3)
|
Earnings from
Continuing Operations before taxes
|
|
$ 68
|
|
$ 85
|
|
$ 484
|
|
$ 31
|
|
668
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
114
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$ 554
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
$ 0.31
|
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations".
|
|
|
a)
|
Acquisition-related
expenses include costs for tax and other services related to
business acquisitions, integration costs which represent
incremental costs directly related to integrating the acquired
businesses and include expenditures for retention, severance, the
integration of systems, and processes and business
activities.
|
|
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
|
|
c)
|
Other primarily
relates to expenses related to certain litigation settlements and
the acquisition of an R&D asset.
|
|
|
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
Third Quarter Ended
September 30, 2018
(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
|
|
$ 3
|
|
$ 544
|
|
$ 42
|
|
$ 609
|
R&D
|
|
(13)
|
|
(1)
|
|
--
|
|
(4)
|
|
(18)
|
SG&A
|
|
(103)
|
|
(2)
|
|
--
|
|
--
|
|
(105)
|
Debt extinguishment
costs
|
|
--
|
|
--
|
|
--
|
|
(67)
|
|
(67)
|
Other (income)
expense, net
|
|
6
|
|
--
|
|
--
|
|
(58)
|
|
(52)
|
Earnings from
Continuing Operations before taxes
|
|
$ 130
|
|
$ 6
|
|
$ 544
|
|
$ 171
|
|
851
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
61
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$ 790
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
$ 0.44
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations".
|
|
|
a)
|
Acquisition-related
expenses include costs for legal, accounting, tax, and other
services related to business acquisitions, integration costs which
represent incremental costs directly related to integrating the
acquired businesses and include expenditures for consulting,
retention, severance, and the integration of systems, processes and
business activities, and fair value adjustments to contingent
consideration related to a business acquisition.
|
|
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
|
|
c)
|
Other includes costs
associated with the early extinguishment of debt and charges
related to the impairment of certain assets.
|
|
|
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
Nine Months Ended
September 30, 2019
(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
|
|
$ 69
|
|
$ 73
|
|
$ 1,453
|
|
$ --
|
|
$ 1,595
|
R&D
|
|
(23)
|
|
(22)
|
|
--
|
|
(114)
|
|
(159)
|
SG&A
|
|
(114)
|
|
(47)
|
|
--
|
|
(17)
|
|
(178)
|
Other (income)
expense, net
|
|
(10)
|
|
--
|
|
--
|
|
(22)
|
|
(32)
|
Earnings from
Continuing Operations before taxes
|
|
$ 216
|
|
$ 142
|
|
$ 1,453
|
|
$ 153
|
|
1,964
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
497
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$ 1,467
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
$ 0.82
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations".
|
|
|
a)
|
Acquisition-related
expenses include costs for tax and other services related to
business acquisitions, integration costs which represent
incremental costs directly related to integrating the acquired
businesses and include expenditures for retention, severance, and
the integration of systems, processes and business activities, and
fair value adjustments to contingent consideration related to a
business acquisition.
|
|
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
|
|
c)
|
Other relates to the
acquisition of R&D assets, charges related to the impairment of
certain assets, and expenses related to certain litigation
settlements.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items, a reduction in the
transition tax associated with the TCJA and excess tax benefits
associated with share-based compensation.
|
Abbott Laboratories
and Subsidiaries
Details of Specified
Items
Nine Months Ended
September 30, 2018
(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
|
|
$ 102
|
|
$ 99
|
|
$ 1,690
|
|
$ 42
|
|
$ 1,933
|
R&D
|
|
(34)
|
|
(4)
|
|
--
|
|
(47)
|
|
(85)
|
SG&A
|
|
(264)
|
|
(10)
|
|
--
|
|
--
|
|
(274)
|
Interest expense,
net
|
|
--
|
|
--
|
|
--
|
|
(2)
|
|
(2)
|
Net foreign exchange
(gain) loss
|
|
--
|
|
(1)
|
|
--
|
|
--
|
|
(1)
|
Debt extinguishment
costs
|
|
--
|
|
--
|
|
--
|
|
(81)
|
|
(81)
|
Other (income)
expense, net
|
|
(1)
|
|
--
|
|
--
|
|
(9)
|
|
(10)
|
Earnings from
Continuing Operations before taxes
|
|
$ 401
|
|
$ 114
|
|
$ 1,690
|
|
$ 181
|
|
2,386
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
378
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$ 2,008
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
$ 1.13
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations".
|
|
|
a)
|
Acquisition-related
expenses include costs for legal, accounting, tax, and other
services related to business acquisitions, integration costs which
represent incremental costs directly related to integrating the
acquired businesses and include expenditures for consulting,
retention, severance, and the integration of systems, processes and
business activities, fair value adjustments to contingent
consideration related to a business acquisition, and inventory
step-up amortization.
|
|
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
inventory write-downs, asset impairments, accelerated depreciation,
and other direct costs associated with specific restructuring plans
and cost reduction initiatives. Restructuring and cost reduction
plans consist of distinct initiatives to streamline operations
including the consolidation and rationalization of business
activities and facilities, workforce reductions, the transfer of
product lines between manufacturing facilities, and the transfer of
other business activities between sites.
|
|
|
c)
|
Other includes the
cost associated with the early extinguishment of debt, costs
related to the acquisition of R&D assets and charges related to
the impairment of certain assets, partially offset by an increase
in fair value of an investment.
|
|
|
d)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
View original
content:http://www.prnewswire.com/news-releases/abbott-reports-third-quarter-2019-results-300939560.html
SOURCE Abbott