ABBOTT PARK, Ill., April 20, 2021
/PRNewswire/ -- Abbott (NYSE: ABT) today announced
financial results for the first quarter ended March 31, 2021.
- First-quarter sales of $10.5
billion increased 35.3 percent on a reported basis and 32.9
percent on an organic basis, which excludes the impact of foreign
exchange.
- First-quarter GAAP diluted EPS was $1.00 and adjusted diluted EPS, which excludes
specified items, was $1.32,
reflecting 103.1 percent growth versus the prior
year.1
- Abbott projects full-year 2021 diluted EPS from continuing
operations on a GAAP basis of at least $3.74. Projected full-year adjusted diluted EPS
from continuing operations of at least $5.00 remains unchanged and reflects growth of
more than 35 percent versus the prior year.2
- Global COVID-19 testing-related sales were $2.2 billion in the first quarter, led by
combined sales of $1.8 billion from
Abbott's BinaxNOW™, Panbio™ and ID
NOW™ rapid testing platforms.
- First-quarter sales increased 7.6 percent on a reported
basis and 5.7 percent on an organic basis, excluding COVID-19
testing-related sales.
- In January, the U.S. Centers for Medicare & Medicaid
Services expanded reimbursement coverage eligibility for Abbott's
revolutionary MitraClip™ device, which significantly
increases the number of people who can benefit from this
market-leading, minimally invasive heart device.
- In March, Abbott announced the U.S. launch of
NeuroSphere™ Virtual Clinic, a first-of-its-kind
technology that allows patients to communicate with physicians,
ensure proper settings and functionality, and receive new treatment
settings remotely as needed.
- In April, Abbott announced U.S. Food and Drug Administration
(FDA) Emergency Use Authorization (EUA) of its BinaxNOW
COVID-19 Ag Self Test for individuals with or without
symptoms and without the need of a prescription.
"We're off to a very strong start to the year, with all four of
our major businesses achieving strong growth," said Robert B. Ford, president and chief executive
officer, Abbott. "We're particularly pleased with the growing
momentum of several recently launched products and continue to
forecast more than 35 percent EPS growth for the year."
FIRST-QUARTER BUSINESS OVERVIEW
Note: Management
believes that measuring sales growth rates on an organic basis is
an appropriate way for investors to best understand the underlying
performance of the business. Organic sales growth excludes the
impact of foreign exchange.
Following are sales by business segment and commentary for
the first quarter 2021:
Total Company
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q20
|
|
|
Sales
1Q21
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
3,838
|
|
6,618
|
|
10,456
|
|
34.4
|
|
35.9
|
|
35.3
|
|
34.4
|
|
32.0
|
|
32.9
|
Nutrition
|
|
836
|
|
1,200
|
|
2,036
|
|
3.0
|
|
9.8
|
|
6.9
|
|
3.0
|
|
9.0
|
|
6.4
|
Diagnostics
|
|
1,641
|
|
2,373
|
|
4,014
|
|
104.4
|
|
131.9
|
|
119.8
|
|
104.4
|
|
122.9
|
|
114.8
|
Established
Pharmaceuticals
|
|
--
|
|
1,070
|
|
1,070
|
|
n/a
|
|
2.5
|
|
2.5
|
|
n/a
|
|
6.2
|
|
6.2
|
Medical
Devices
|
|
1,351
|
|
1,969
|
|
3,320
|
|
9.6
|
|
15.6
|
|
13.1
|
|
9.6
|
|
8.2
|
|
8.8
|
|
* Total Q1 2021
Abbott sales from continuing operations include Other Sales of
approximately $16 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
foreign exchange rates.
|
First-quarter 2021 worldwide sales of $10.5 billion increased 35.3 percent on a
reported basis and 32.9 percent on an organic basis.
Nutrition
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q20
|
|
|
Sales
1Q21
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
836
|
|
1,200
|
|
2,036
|
|
3.0
|
|
9.8
|
|
6.9
|
|
3.0
|
|
9.0
|
|
6.4
|
Pediatric
|
|
508
|
|
558
|
|
1,066
|
|
(1.8)
|
|
(2.3)
|
|
(2.1)
|
|
(1.8)
|
|
(3.1)
|
|
(2.5)
|
Adult
|
|
328
|
|
642
|
|
970
|
|
11.4
|
|
23.1
|
|
18.9
|
|
11.4
|
|
22.1
|
|
18.3
|
Worldwide Nutrition sales increased 6.9 percent on a reported
basis and 6.4 percent on an organic basis in the first quarter.
Strong performance of Ensure®, Abbott's market-leading
complete and balanced nutrition brand, and Glucerna®,
Abbott's market-leading diabetes nutrition brand, led to global
Adult Nutrition sales growth of 18.9 percent on a reported basis
and 18.3 percent on an organic basis. In Pediatric Nutrition, sales
growth was negatively impacted by a difficult comparison versus the
first quarter of 2020 when consumers increased purchases in advance
of stay-at-home directives as a result of COVID-19.
Diagnostics
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q20
|
|
|
Sales
1Q21
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,641
|
|
2,373
|
|
4,014
|
|
104.4
|
|
131.9
|
|
119.8
|
|
104.4
|
|
122.9
|
|
114.8
|
Core
Laboratory
|
|
271
|
|
911
|
|
1,182
|
|
1.9
|
|
26.1
|
|
19.6
|
|
1.9
|
|
21.3
|
|
16.1
|
Molecular
|
|
175
|
|
272
|
|
447
|
|
168.7
|
|
267.0
|
|
220.9
|
|
168.7
|
|
250.2
|
|
212.0
|
Point of
Care
|
|
92
|
|
37
|
|
129
|
|
(11.4)
|
|
7.8
|
|
(6.6)
|
|
(11.4)
|
|
3.8
|
|
(7.6)
|
Rapid
Diagnostics
|
|
1,103
|
|
1,153
|
|
2,256
|
|
199.7
|
|
500.6
|
|
302.8
|
|
199.7
|
|
477.7
|
|
295.0
|
Worldwide Diagnostics sales increased 119.8 percent on a
reported basis in the first quarter and increased 114.8 percent on
an organic basis. Strong growth in the quarter was driven by demand
for Abbott's portfolio of COVID-19 diagnostics tests across its
rapid and lab-based platforms. Global COVID-19 testing-related
sales were $2.2 billion in the first
quarter, led by combined sales of $1.8
billion from Abbott's BinaxNOW, Panbio and ID NOW rapid
testing platforms.
Excluding COVID-19 testing-related sales, Core Laboratory
Diagnostics sales increased 10.7 percent and Molecular Diagnostics
sales increased 31.5 percent on an organic basis in the first
quarter.3
Established Pharmaceuticals
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q20
|
|
|
Sales
1Q21
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
--
|
|
1,070
|
|
1,070
|
|
n/a
|
|
2.5
|
|
2.5
|
|
n/a
|
|
6.2
|
|
6.2
|
Key Emerging
Markets
|
|
--
|
|
821
|
|
821
|
|
n/a
|
|
1.0
|
|
1.0
|
|
n/a
|
|
6.7
|
|
6.7
|
Other
|
|
--
|
|
249
|
|
249
|
|
n/a
|
|
7.8
|
|
7.8
|
|
n/a
|
|
4.2
|
|
4.2
|
Established Pharmaceuticals sales increased 2.5 percent on a
reported basis in the first quarter and increased 6.2 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 1.0 percent on a reported
basis in the quarter and increased 6.7 percent on an organic basis.
Organic sales growth was led by strong growth across several
geographies, including China,
India and Brazil.
Other sales increased 7.8 percent on a reported basis in the
quarter and increased 4.2 percent on an organic basis.
Medical Devices
($ in millions)
|
|
|
|
|
|
|
|
% Change vs.
1Q20
|
|
|
Sales
1Q21
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,351
|
|
1,969
|
|
3,320
|
|
9.6
|
|
15.6
|
|
13.1
|
|
9.6
|
|
8.2
|
|
8.8
|
Rhythm
Management
|
|
241
|
|
278
|
|
519
|
|
5.6
|
|
13.4
|
|
9.6
|
|
5.6
|
|
6.1
|
|
5.8
|
Electrophysiology
|
|
179
|
|
252
|
|
431
|
|
9.3
|
|
12.3
|
|
11.0
|
|
9.3
|
|
5.5
|
|
7.1
|
Heart
Failure
|
|
145
|
|
49
|
|
194
|
|
(4.7)
|
|
(4.3)
|
|
(4.6)
|
|
(4.7)
|
|
(10.8)
|
|
(6.2)
|
Vascular
|
|
219
|
|
416
|
|
635
|
|
(4.7)
|
|
5.4
|
|
1.7
|
|
(4.7)
|
|
(0.4)
|
|
(2.0)
|
Structural
Heart
|
|
169
|
|
208
|
|
377
|
|
24.3
|
|
14.3
|
|
18.6
|
|
24.3
|
|
6.7
|
|
14.2
|
Neuromodulation
|
|
145
|
|
39
|
|
184
|
|
6.1
|
|
(1.4)
|
|
4.4
|
|
6.1
|
|
(8.3)
|
|
2.8
|
Diabetes
Care
|
|
253
|
|
727
|
|
980
|
|
35.7
|
|
28.3
|
|
30.2
|
|
35.7
|
|
19.5
|
|
23.6
|
Worldwide Medical Devices sales increased 13.1 percent on a
reported basis in the first quarter and increased 8.8 percent on an
organic basis. Strong growth in the quarter was driven by continued
recovery from the COVID-19 pandemic. In Diabetes Care, sales of
FreeStyle® Libre and Libre Sense were $829 million in the quarter. FreeStyle Libre
now has more than 3 million users worldwide.
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects
2021 diluted earnings per share from continuing operations under
Generally Accepted Accounting Principles (GAAP) of at least
$3.74. Abbott forecasts specified
items for the full-year 2021 of $1.26
primarily related to intangible amortization, expenses associated
with acquisitions, restructuring and cost reduction initiatives and
other net expenses. Excluding specified items, projected adjusted
diluted earnings per share from continuing operations would be at
least $5.00 for full-year 2021.
ABBOTT DECLARES 389TH CONSECUTIVE QUARTERLY
DIVIDEND
On Feb. 19, 2021, the board of
directors of Abbott declared the company's quarterly dividend of
$0.45 per share. Abbott's cash
dividend is payable May 17, 2021 to
shareholders of record at the close of business on April 15, 2021.
Abbott has increased its dividend payout for 49 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 109,000 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.
Abbott will live webcast its first-quarter earnings conference
call through its Investor Relations website at
www.abbottinvestor.com at 8:30 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" in our Annual Report on
Form 10-K for the year ended Dec. 31,
2020, and are incorporated herein 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 First-quarter 2021 diluted EPS from continuing
operations on a GAAP basis reflects 233.3 percent growth.
2 Full-year 2021 guidance for diluted EPS from
continuing operations on a GAAP basis reflects growth of at least
50 percent versus the prior year.
3 Excluding COVID-19 testing-related sales, Core
Laboratory Diagnostics sales increased 14.1 percent and Molecular
Diagnostics sales increased 33.9 percent on a reported basis in the
first quarter.
Abbott Laboratories
and Subsidiaries
Condensed
Consolidated Statement of Earnings
First Quarter Ended
March 31, 2021 and 2020
(in millions, except
per share data)
(unaudited)
|
|
|
|
1Q21
|
|
1Q20
|
|
%
Change
|
|
Net Sales
|
|
$10,456
|
|
$7,726
|
|
35.3
|
|
|
|
|
|
|
|
|
|
Cost of products
sold, excluding amortization expense
|
|
4,401
|
|
3,281
|
|
34.1
|
|
Amortization of
intangible assets
|
|
509
|
|
561
|
|
(9.2)
|
|
Research and
development
|
|
654
|
|
578
|
|
13.3
|
|
Selling, general, and
administrative
|
|
2,783
|
|
2,548
|
|
9.2
|
|
Total Operating Cost
and Expenses
|
|
8,347
|
|
6,968
|
|
19.8
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
|
2,109
|
|
758
|
|
178.0
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
124
|
|
121
|
|
2.2
|
|
Net foreign exchange
(gain) loss
|
|
3
|
|
5
|
|
(44.7)
|
|
Other (income)
expense, net
|
|
(61)
|
|
(1)
|
|
n/m
|
|
Earnings from
Continuing Operations before taxes
|
|
2,043
|
|
633
|
|
222.7
|
|
|
|
|
|
|
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
250
|
|
89
|
|
180.6
|
1)
|
Earnings from
Continuing Operations
|
|
1,793
|
|
544
|
|
229.5
|
|
|
|
|
|
|
|
|
|
Earnings from
Discontinued Operations, net of taxes
|
|
--
|
|
20
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
Earnings
|
|
$1,793
|
|
$564
|
|
217.8
|
|
|
|
|
|
|
|
|
|
Earnings from
Continuing Operations, excluding
|
|
|
|
|
|
|
|
Specified Items, as
described below
|
|
$2,368
|
|
$1,162
|
|
103.8
|
2)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from:
|
|
|
|
|
|
|
|
Continuing
Operations
|
|
$1.00
|
|
$0.30
|
|
233.3
|
|
Discontinued
Operations
|
|
--
|
|
0.01
|
|
n/m
|
|
Total
|
|
$1.00
|
|
$0.31
|
|
222.6
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share from Continuing
|
|
|
|
|
|
|
|
Operations, excluding
Specified Items, as described below
|
|
$1.32
|
|
$0.65
|
|
103.1
|
2)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,792
|
|
1,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 on the
following table.
|
|
|
1)
|
2021 Tax expense on
Earnings from Continuing Operations includes the recognition of
approximately $80 million in excess tax benefits associated with
share-based compensation.
|
|
|
2)
|
2021 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $575
million, or $0.32 per share, for intangible amortization and other
net expenses primarily associated with certain litigation,
acquisitions and restructuring actions.
|
|
|
|
2020 Net Earnings and
Diluted Earnings per Common Share from Continuing Operations,
excluding Specified Items, excludes net after-tax charges of $618
million, or $0.35 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
First Quarter Ended
March 31, 2021 and 2020
(in millions,
except per share data)
(unaudited)
|
|
|
|
1Q21
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
509
|
|
$
(509)
|
|
$
--
|
|
|
Gross
Margin
|
|
5,546
|
|
549
|
|
6,095
|
|
58.3%
|
R&D
|
|
654
|
|
(28)
|
|
626
|
|
6.0%
|
SG&A
|
|
2,783
|
|
(154)
|
|
2,629
|
|
25.1%
|
Other (income)
expense, net
|
|
(61)
|
|
(12)
|
|
(73)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
2,043
|
|
743
|
|
2,786
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
250
|
|
168
|
|
418
|
|
|
Earnings from
Continuing Operations
|
|
1,793
|
|
575
|
|
2,368
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$1.00
|
|
$0.32
|
|
$1.32
|
|
|
|
|
Specified items
reflect intangible amortization expense of $509 million and other
net expenses of $234 million, primarily associated with certain
litigation, acquisitions, restructuring actions and other expenses.
See tables titled "Details of Specified Items" for
additional details regarding specified items.
|
|
|
|
1Q20
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
561
|
|
$
(561)
|
|
$
--
|
|
|
Gross
Margin
|
|
3,884
|
|
599
|
|
4,483
|
|
58.0%
|
R&D
|
|
578
|
|
(15)
|
|
563
|
|
7.3%
|
SG&A
|
|
2,548
|
|
(58)
|
|
2,490
|
|
32.2%
|
Other (income)
expense, net
|
|
(1)
|
|
(42)
|
|
(43)
|
|
|
Earnings from
Continuing Operations before taxes
|
|
633
|
|
714
|
|
1,347
|
|
|
Tax expense on
Earnings from Continuing Operations
|
|
89
|
|
96
|
|
185
|
|
|
Earnings from
Continuing Operations
|
|
544
|
|
618
|
|
1,162
|
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
$0.30
|
|
$0.35
|
|
$0.65
|
|
|
|
Specified items
reflect intangible amortization expense of $561 million and other
expenses of $153 million, primarily associated with acquisitions,
restructuring actions and other expenses. See tables
titled "Details of Specified Items" for additional
details regarding specified items.
|
A reconciliation of the first-quarter tax rates for continuing
operations for 2021 and 2020 is shown below:
|
|
|
1Q21
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
As reported
(GAAP)
|
|
$2,043
|
|
$
250
|
|
12.2%
|
Specified
items
|
|
743
|
|
168
|
|
|
Excluding
specified items
|
|
$2,786
|
|
$418
|
|
15.0%
|
|
|
|
|
|
|
|
|
|
|
|
1Q20
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
As reported
(GAAP)
|
|
$633
|
|
$89
|
|
14.0%
|
Specified
items
|
|
714
|
|
96
|
|
|
Excluding
specified items
|
|
$1,347
|
|
$185
|
|
13.7%
|
|
|
1)
|
2021 Tax expense on
Earnings from Continuing Operations includes the recognition of
approximately $80 million in excess tax benefits associated with
share-based compensation.
|
Abbott Laboratories
and Subsidiaries
Details of Specified
Items
First Quarter Ended
March 31, 2021
(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
|
|
$
19
|
|
$
19
|
|
$
509
|
|
2
|
|
$
549
|
|
R&D
|
|
(2)
|
|
--
|
|
--
|
|
(26)
|
|
(28)
|
|
SG&A
|
|
(13)
|
|
(1)
|
|
--
|
|
(140)
|
|
(154)
|
|
Other (income)
expense, net
|
|
--
|
|
1
|
|
--
|
|
(13)
|
|
(12)
|
|
Earnings from
Continuing Operations before taxes
|
|
$
34
|
|
$
19
|
|
$
509
|
|
$
181
|
|
743
|
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
|
168
|
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
575
|
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table above
provides additional details regarding the specified items described
on table titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations."
|
|
a)
|
Acquisition-related
expenses include integration costs, which represent incremental
costs directly related to integrating the acquired businesses and
include expenditures for the integration of systems, processes and
business activities.
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
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 the net costs related to certain litigation, the
acquisition of a research and development asset, and the impairment
of an equity investment.
|
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
First Quarter Ended
March 31, 2020
(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
|
|
$
23
|
|
$
15
|
|
$
561
|
|
$
--
|
|
$
599
|
R&D
|
|
(4)
|
|
(6)
|
|
--
|
|
(5)
|
|
(15)
|
SG&A
|
|
(28)
|
|
(30)
|
|
--
|
|
--
|
|
(58)
|
Other (income)
expense, net
|
|
2
|
|
--
|
|
--
|
|
(44)
|
|
(42)
|
Earnings from
Continuing Operations before taxes
|
|
$
53
|
|
$
51
|
|
$
561
|
|
$
49
|
|
714
|
Tax expense on
Earnings from Continuing Operations (d)
|
|
|
|
|
|
|
|
|
|
96
|
Earnings from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
618
|
Diluted Earnings per
Share from Continuing Operations
|
|
|
|
|
|
|
|
|
|
$
0.35
|
|
|
The table above
provides additional details regarding the specified items described
on table titled "Non-GAAP Reconciliation of Financial Information
From Continuing Operations."
|
|
a)
|
Acquisition-related
expenses include integration costs, which represent incremental
costs directly related to integrating the acquired business and
include expenditures for retention, severance, and the integration
of systems, processes and business activities.
|
b)
|
Restructuring and
cost reduction initiative expenses include severance, outplacement,
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 the impairment 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-first-quarter-2021-results-301272437.html
SOURCE Abbott