- Sales growth of 10.1 percent; organic sales growth of 14.3
percent
- GAAP diluted EPS growth of 72.7 percent; adjusted diluted
EPS growth of 22.2 percent
- Global COVID-19 testing-related sales of $2.3 billion in the second quarter
- Continues to strengthen portfolio with new product
approvals
ABBOTT
PARK, Ill., July 20,
2022 /PRNewswire/ -- Abbott (NYSE: ABT) today
announced financial results for the second quarter ended
June 30, 2022.
- Second-quarter sales of $11.3
billion increased 10.1 percent on a reported basis and 14.3
percent on an organic basis, which excludes the impact of foreign
exchange.
- GAAP diluted EPS1 was $1.14 in the second quarter. Excluding specified
items, adjusted diluted EPS was $1.43, which reflects growth of 22.2 percent
compared to the prior year.
- Global COVID-19 testing-related sales were $2.3 billion in the second quarter.
- Abbott is raising its full-year 2022 EPS guidance. Abbott
projects full-year diluted EPS on a GAAP basis of at least
$3.50 and projected adjusted diluted
EPS of at least $4.90.
- 2022 guidance includes projected COVID-19 testing-related sales
of $6.1 billion, which includes sales
of $5.6 billion through June 2022 and projected sales of $500 million over the next few months.
- In April, Abbott announced U.S. Food and Drug Administration
(FDA) approval of its Aveir™ single-chamber (VR) leadless pacemaker
for the treatment of patients with slow heart rhythms. Aveir VR is
the world's only leadless pacemaker with a unique mapping
capability to assess correct positioning prior to placement and was
specifically designed to be expandable and retrievable when therapy
needs evolve or the device needs to be replaced.
- In May, Abbott announced U.S. FDA clearance of its FreeStyle
Libre® 3 system, which automatically delivers
up-to-the-minute glucose readings and unsurpassed 14-day
accuracy2 in the world's smallest and
thinnest3 wearable sensor.
- In June, Abbott announced breakthrough device designation from
the U.S. FDA for its first-of-its-kind glucose-ketone biowearable
sensor development program, which will enable people with diabetes
to continuously monitor glucose and ketones in one sensor, helping
those at risk for developing a life-threatening complication called
diabetic ketoacidosis.
"We achieved another quarter of strong growth and are raising
our full-year EPS guidance," said Robert B.
Ford, chairman and chief executive officer, Abbott. "Our new
product pipeline has remained highly productive, and our
diversified business has continued to be resilient in a challenging
macro environment."
SECOND-QUARTER BUSINESS OVERVIEW
Note: Management
believes that measuring sales growth rates on an organic basis is
an appropriate way for investors to best understand the underlying
performance of the business. Organic sales growth excludes the
impact of foreign exchange.
Following are sales by business segment and commentary for
the second quarter 2022:
Total
Company ($ in millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
2Q21
|
|
|
Sales
2Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
4,892
|
|
6,365
|
|
11,257
|
|
36.6
|
|
(4.2)
|
|
10.1
|
|
36.6
|
|
2.3
|
|
14.3
|
Nutrition
|
|
761
|
|
1,192
|
|
1,953
|
|
(12.9)
|
|
(3.5)
|
|
(7.4)
|
|
(12.9)
|
|
1.5
|
|
(4.5)
|
Diagnostics
|
|
2,469
|
|
1,853
|
|
4,322
|
|
113.8
|
|
(11.4)
|
|
33.1
|
|
113.8
|
|
(5.6)
|
|
36.9
|
Established
Pharmaceuticals
|
|
--
|
|
1,223
|
|
1,223
|
|
n/a
|
|
3.7
|
|
3.7
|
|
n/a
|
|
9.2
|
|
9.2
|
Medical
Devices
|
|
1,660
|
|
2,097
|
|
3,757
|
|
7.9
|
|
(1.5)
|
|
2.5
|
|
7.9
|
|
7.1
|
|
7.5
|
|
* Total Q2 2022 Abbott
sales include Other Sales of approximately $2 million.
|
|
|
|
|
|
|
|
|
% Change vs.
1H21
|
|
|
Sales
1H22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
*
|
|
9,829
|
|
13,323
|
|
23,152
|
|
32.5
|
|
0.5
|
|
12.0
|
|
32.5
|
|
6.7
|
|
15.9
|
Nutrition
|
|
1,438
|
|
2,409
|
|
3,847
|
|
(15.9)
|
|
(1.1)
|
|
(7.2)
|
|
(15.9)
|
|
3.6
|
|
(4.4)
|
Diagnostics
|
|
5,210
|
|
4,398
|
|
9,608
|
|
86.4
|
|
(1.5)
|
|
32.3
|
|
86.4
|
|
4.3
|
|
35.9
|
Established
Pharmaceuticals
|
|
--
|
|
2,370
|
|
2,370
|
|
n/a
|
|
5.3
|
|
5.3
|
|
n/a
|
|
11.2
|
|
11.2
|
Medical
Devices
|
|
3,176
|
|
4,146
|
|
7,322
|
|
9.9
|
|
1.2
|
|
4.8
|
|
9.9
|
|
9.0
|
|
9.4
|
|
* Total 1H 2022 Abbott
sales include Other Sales of approximately $5 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.
|
Second-quarter 2022 worldwide sales of $11.3 billion increased 10.1 percent on a
reported basis and 14.3 percent on an organic basis.
Worldwide sales, excluding COVID-19 testing-related sales,
decreased 0.3 percent on a reported basis and increased 4.1 percent
on an organic basis in the quarter.4 Worldwide
sales were negatively impacted by a voluntary recall and
manufacturing shutdown initiated in February of certain infant
formula products manufactured at one of Abbott's U.S. plants.
Excluding COVID-19 testing-related sales and the U.S. sales
associated with the recalled products in the current and prior
years, total worldwide sales increased 1.6 percent on a reported
basis and 6.2 percent on an organic basis in the second
quarter. 5
Nutrition ($
in millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
2Q21
|
|
|
Sales
2Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
761
|
|
1,192
|
|
1,953
|
|
(12.9)
|
|
(3.5)
|
|
(7.4)
|
|
(12.9)
|
|
1.5
|
|
(4.5)
|
Pediatric
|
|
413
|
|
512
|
|
925
|
|
(21.6)
|
|
(9.5)
|
|
(15.3)
|
|
(21.6)
|
|
(5.8)
|
|
(13.4)
|
Adult
|
|
348
|
|
680
|
|
1,028
|
|
0.5
|
|
1.6
|
|
1.2
|
|
0.5
|
|
7.6
|
|
5.2
|
|
|
|
|
|
|
|
|
% Change vs.
1H21
|
|
|
Sales
1H22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,438
|
|
2,409
|
|
3,847
|
|
(15.9)
|
|
(1.1)
|
|
(7.2)
|
|
(15.9)
|
|
3.6
|
|
(4.4)
|
Pediatric
|
|
751
|
|
1,021
|
|
1,772
|
|
(27.5)
|
|
(9.1)
|
|
(17.9)
|
|
(27.5)
|
|
(5.6)
|
|
(16.1)
|
Adult
|
|
687
|
|
1,388
|
|
2,075
|
|
2.1
|
|
5.8
|
|
4.6
|
|
2.1
|
|
11.5
|
|
8.3
|
Worldwide Nutrition sales decreased 7.4 percent on a reported
basis and 4.5 percent on an organic basis in the second quarter.
Total worldwide Nutrition and Pediatric Nutrition sales were
negatively impacted by a voluntary recall and manufacturing
shutdown initiated in February of certain infant formula products
manufactured at one of Abbott's U.S. plants. On July 1, Abbott restarted partial production at
the facility. Excluding the U.S. sales associated with these
products in the current and prior years, total worldwide Nutrition
sales increased 0.5 percent on a reported basis and 3.8 percent on
an organic basis in the second quarter.6
In Adult Nutrition, Ensure®, Abbott's market-leading
complete and balanced nutrition brand, and Glucerna®,
Abbott's market-leading diabetes nutrition brand, led to global
sales growth of 1.2 percent on a reported basis and 5.2 percent on
an organic basis.
Diagnostics ($ in millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
2Q21
|
|
|
Sales
2Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
2,469
|
|
1,853
|
|
4,322
|
|
113.8
|
|
(11.4)
|
|
33.1
|
|
113.8
|
|
(5.6)
|
|
36.9
|
Core
Laboratory
|
|
287
|
|
934
|
|
1,221
|
|
1.3
|
|
(8.6)
|
|
(6.5)
|
|
1.3
|
|
(2.0)
|
|
(1.3)
|
Molecular
|
|
71
|
|
141
|
|
212
|
|
(23.7)
|
|
(28.4)
|
|
(26.9)
|
|
(23.7)
|
|
(24.4)
|
|
(24.2)
|
Point of
Care
|
|
101
|
|
38
|
|
139
|
|
3.2
|
|
(3.7)
|
|
1.2
|
|
3.2
|
|
0.3
|
|
2.4
|
Rapid
Diagnostics
|
|
2,010
|
|
740
|
|
2,750
|
|
195.4
|
|
(11.2)
|
|
81.7
|
|
195.4
|
|
(5.8)
|
|
84.6
|
|
|
|
|
|
|
|
|
% Change vs.
1H21
|
|
|
Sales
1H22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
5,210
|
|
4,398
|
|
9,608
|
|
86.4
|
|
(1.5)
|
|
32.3
|
|
86.4
|
|
4.3
|
|
35.9
|
Core
Laboratory
|
|
555
|
|
1,850
|
|
2,405
|
|
0.1
|
|
(4.3)
|
|
(3.4)
|
|
0.1
|
|
1.7
|
|
1.3
|
Molecular
|
|
243
|
|
389
|
|
632
|
|
(9.4)
|
|
(16.9)
|
|
(14.2)
|
|
(9.4)
|
|
(12.4)
|
|
(11.3)
|
Point of
Care
|
|
192
|
|
75
|
|
267
|
|
1.2
|
|
(1.7)
|
|
0.4
|
|
1.2
|
|
2.0
|
|
1.4
|
Rapid
Diagnostics
|
|
4,220
|
|
2,084
|
|
6,304
|
|
136.6
|
|
4.9
|
|
67.2
|
|
136.6
|
|
10.9
|
|
70.4
|
Worldwide Diagnostics sales increased 33.1 percent on a reported
basis and 36.9 percent on an organic basis in the second quarter.
Global COVID-19 testing-related sales were $2.3 billion in the quarter, led by sales of
testing products in Rapid Diagnostics.
Sales in Core Laboratory and Molecular Diagnostics were impacted
by year-over-year declines in COVID-19 testing-related sales in
these businesses. Excluding COVID-19 testing-related sales, Core
Laboratory Diagnostics sales decreased 3.1 percent on a reported
basis and increased 2.3 percent on an organic basis and Molecular
Diagnostics sales increased 17.9 percent on a reported basis and
22.3 percent on an organic basis in the second
quarter.7
Established
Pharmaceuticals ($ in millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
2Q21
|
|
|
Sales
2Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
--
|
|
1,223
|
|
1,223
|
|
n/a
|
|
3.7
|
|
3.7
|
|
n/a
|
|
9.2
|
|
9.2
|
Key Emerging
Markets
|
|
--
|
|
931
|
|
931
|
|
n/a
|
|
1.8
|
|
1.8
|
|
n/a
|
|
7.1
|
|
7.1
|
Other
|
|
--
|
|
292
|
|
292
|
|
n/a
|
|
10.3
|
|
10.3
|
|
n/a
|
|
16.7
|
|
16.7
|
|
|
|
|
|
|
|
|
% Change vs.
1H21
|
|
|
Sales
1H22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
--
|
|
2,370
|
|
2,370
|
|
n/a
|
|
5.3
|
|
5.3
|
|
n/a
|
|
11.2
|
|
11.2
|
Key Emerging
Markets
|
|
--
|
|
1,833
|
|
1,833
|
|
n/a
|
|
5.6
|
|
5.6
|
|
n/a
|
|
11.8
|
|
11.8
|
Other
|
|
--
|
|
537
|
|
537
|
|
n/a
|
|
4.5
|
|
4.5
|
|
n/a
|
|
9.2
|
|
9.2
|
Established Pharmaceuticals sales increased 3.7 percent on a
reported basis and 9.2 percent on an organic basis in the second
quarter.
Key Emerging Markets include several emerging countries that
represent the most attractive long-term growth opportunities for
Abbott's branded generics product portfolio. Sales in these
geographies increased 1.8 percent on a reported basis and 7.1
percent on an organic basis, led by double-digit growth on a
reported and organic basis in several geographies and therapeutic
areas, including cardiometabolic, respiratory and central nervous
system/pain management.
Other sales increased 10.3 percent on a reported basis and 16.7
percent on an organic basis in the quarter.
Medical
Devices ($ in millions)
|
|
|
|
|
|
|
|
|
|
% Change vs.
2Q21
|
|
|
Sales
2Q22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
1,660
|
|
2,097
|
|
3,757
|
|
7.9
|
|
(1.5)
|
|
2.5
|
|
7.9
|
|
7.1
|
|
7.5
|
Rhythm
Management
|
|
264
|
|
284
|
|
548
|
|
(2.3)
|
|
(4.4)
|
|
(3.4)
|
|
(2.3)
|
|
3.7
|
|
0.9
|
Electrophysiology
|
|
226
|
|
260
|
|
486
|
|
8.6
|
|
(6.8)
|
|
(0.2)
|
|
8.6
|
|
2.2
|
|
5.0
|
Heart
Failure
|
|
179
|
|
62
|
|
241
|
|
6.5
|
|
4.2
|
|
5.9
|
|
6.5
|
|
13.6
|
|
8.3
|
Vascular
|
|
228
|
|
425
|
|
653
|
|
(6.7)
|
|
(5.8)
|
|
(6.1)
|
|
(6.7)
|
|
1.2
|
|
(1.6)
|
Structural
Heart
|
|
207
|
|
233
|
|
440
|
|
8.1
|
|
0.9
|
|
4.2
|
|
8.1
|
|
11.4
|
|
9.9
|
Neuromodulation
|
|
157
|
|
40
|
|
197
|
|
(5.2)
|
|
(8.7)
|
|
(6.0)
|
|
(5.2)
|
|
0.2
|
|
(4.1)
|
Diabetes
Care
|
|
399
|
|
793
|
|
1,192
|
|
37.8
|
|
3.4
|
|
12.8
|
|
37.8
|
|
12.4
|
|
19.4
|
|
|
|
|
|
|
|
|
% Change vs.
1H21
|
|
|
Sales
1H22
|
|
Reported
|
|
Organic
|
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
|
U.S.
|
|
Int'l
|
|
Total
|
Total
|
|
3,176
|
|
4,146
|
|
7,322
|
|
9.9
|
|
1.2
|
|
4.8
|
|
9.9
|
|
9.0
|
|
9.4
|
Rhythm
Management
|
|
512
|
|
560
|
|
1,072
|
|
0.3
|
|
(2.7)
|
|
(1.3)
|
|
0.3
|
|
4.4
|
|
2.5
|
Electrophysiology
|
|
442
|
|
529
|
|
971
|
|
14.0
|
|
(0.1)
|
|
5.8
|
|
14.0
|
|
8.0
|
|
10.5
|
Heart
Failure
|
|
346
|
|
116
|
|
462
|
|
10.6
|
|
7.3
|
|
9.7
|
|
10.6
|
|
15.9
|
|
11.9
|
Vascular
|
|
437
|
|
835
|
|
1,272
|
|
(6.0)
|
|
(3.7)
|
|
(4.5)
|
|
(6.0)
|
|
2.6
|
|
(0.4)
|
Structural
Heart
|
|
397
|
|
454
|
|
851
|
|
10.4
|
|
3.4
|
|
6.5
|
|
10.4
|
|
12.8
|
|
11.7
|
Neuromodulation
|
|
300
|
|
76
|
|
376
|
|
(3.4)
|
|
(9.1)
|
|
(4.6)
|
|
(3.4)
|
|
(0.9)
|
|
(2.9)
|
Diabetes
Care
|
|
742
|
|
1,576
|
|
2,318
|
|
36.8
|
|
5.5
|
|
13.8
|
|
36.8
|
|
13.7
|
|
19.8
|
Worldwide Medical Devices sales increased 2.5 percent on a
reported basis and 7.5 percent on an organic basis in the second
quarter. Sales growth was negatively impacted by reduced
cardiovascular and neuromodulation procedure volumes as a result of
recent surges of COVID-19 in several geographies, healthcare
staffing challenges and lockdowns in China that were implemented to control the
spread of the virus.
In Diabetes Care, FreeStyle Libre sales were approximately
$1.1 billion in the quarter, which
represents sales growth of 18.7 percent on a reported basis and
25.6 percent on an organic basis.
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott is raising
its projected full-year 2022 diluted earnings per share under GAAP
to at least $3.50. Abbott forecasts
specified items for the full-year 2022 of $1.40 per share primarily related to intangible
amortization, costs related to a voluntary recall, expenses
associated with acquisitions, restructurings and cost reduction
initiatives and other net expenses. Excluding specified items,
Abbott is raising its projected adjusted diluted earnings per share
to at least $4.90 for the full-year
2022.
ABBOTT DECLARES 394TH CONSECUTIVE QUARTERLY
DIVIDEND
On June 10, 2022, the
board of directors of Abbott declared the company's quarterly
dividend of $0.47 per share. Abbott's
cash dividend is payable Aug. 15,
2022, to shareholders of record at the close of business on
July 15, 2022.
Abbott has increased its dividend payout for 50 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
113,000 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 second-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 in the 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,
2021, 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
|
All reported amounts
relate to continuing operations only as there are no discontinued
operations in the periods presented.
|
2
|
Data on file, Abbott
Diabetes Care. Comparison based on publicly available
information.
|
3
|
Among patient-applied
sensors. Data on file, Abbott Diabetes Care.
|
4
|
In the second quarter
of 2022, COVID-19 testing-related sales were $2.324 billion. In the
second quarter of 2021, total worldwide sales were $10.223 billion,
which included COVID-19 testing-related sales of $1.267
billion.
|
5
|
In the second quarter
of 2022, U.S. sales of certain infant formula products were $116
million. In the second quarter of 2021, U.S. sales of certain
infant formula products were $280 million.
|
6
|
In the second quarter
of 2021, worldwide Nutrition sales were $2.108 billion, which
included $280 million of U.S. sales of certain infant formula
products.
|
7
|
In the second quarter
of 2022, Core Laboratory and Molecular Diagnostics COVID-19
testing-related sales were $12 million and $75 million,
respectively. In the second quarter of 2021, worldwide Core
Laboratory and Molecular Diagnostics sales were $1.306 billion and
$290 million, respectively. Core Laboratory and Molecular
Diagnostics COVID-19 testing-related sales in the second quarter of
2021 were $58 million and $173 million, respectively.
|
Abbott Laboratories
and Subsidiaries
Condensed Consolidated Statement of Earnings
Second Quarter Ended June 30, 2022 and
2021
(in millions, except per share
data)
(unaudited)
|
|
|
|
|
2Q22
|
|
2Q21
|
|
%
Change
|
|
Net Sales
|
|
$11,257
|
|
$10,223
|
|
10.1
|
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization expense
|
|
4,933
|
|
4,947
|
|
(0.3)
|
1)
|
Amortization of
intangible assets
|
|
507
|
|
504
|
|
0.7
|
|
Research and
development
|
|
684
|
|
654
|
|
4.8
|
|
Selling, general, and
administrative
|
|
2,757
|
|
2,726
|
|
1.1
|
|
Total Operating Cost
and Expenses
|
|
8,881
|
|
8,831
|
|
0.6
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
|
2,376
|
|
1,392
|
|
70.6
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
106
|
|
123
|
|
(14.1)
|
|
Other (income) expense,
net
|
|
(82)
|
|
(79)
|
|
3.6
|
|
Earnings before
taxes
|
|
2,352
|
|
1,348
|
|
74.4
|
|
Taxes on
earnings
|
|
334
|
|
159
|
|
109.2
|
|
|
|
|
|
|
|
|
|
Net Earnings
|
|
$2,018
|
|
$1,189
|
|
69.7
|
|
|
|
|
|
|
|
|
|
Net Earnings Excluding
Specified Items, as described below
|
|
$2,542
|
|
$2,115
|
|
20.2
|
2)
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share
|
|
$1.14
|
|
$0.66
|
|
72.7
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share,
|
|
|
|
|
|
|
|
excluding Specified
Items, as described below
|
|
$1.43
|
|
$1.17
|
|
22.2
|
2)
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,765
|
|
1,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES:
|
|
See tables titled
"Non-GAAP Reconciliation of Financial Information" for an
explanation of certain non-GAAP financial information.
|
See footnotes on the
following below.
|
|
|
1)
|
2021 Cost of products
sold, excluding amortization expense includes approximately $500
million of charges associated with a restructuring plan to align
Abbott's manufacturing network for COVID-19 diagnostic tests with
changes during the second quarter in projected testing
demand.
|
|
|
2)
|
2022 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $524 million, or $0.29 per share,
for intangible amortization, charges related to a voluntary recall
and other net expenses primarily associated with
acquisitions.
|
|
|
|
2021 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $926 million, or $0.51 per share,
for intangible amortization and other net expenses primarily
associated with restructuring actions, certain litigation and
acquisitions.
|
Abbott Laboratories and
Subsidiaries
Condensed Consolidated Statement
of Earnings
First Half Ended June 30, 2022 and 2021
(in millions, except per share
data)
(unaudited)
|
|
|
|
|
1H22
|
|
1H21
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$23,152
|
|
$20,679
|
|
12.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization expense
|
|
9,920
|
|
9,348
|
|
6.1
|
1)
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
1,019
|
|
1,013
|
|
0.6
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
1,381
|
|
1,308
|
|
5.6
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
|
5,544
|
|
5,509
|
|
0.6
|
|
|
|
|
|
|
|
|
|
Total Operating Cost
and Expenses
|
|
17,864
|
|
17,178
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Earnings
|
|
5,288
|
|
3,501
|
|
51.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
223
|
|
247
|
|
(9.9)
|
|
|
|
|
|
|
|
|
|
Net foreign exchange
(gain) loss
|
|
(3)
|
|
3
|
|
n/m
|
|
|
|
|
|
|
|
|
|
Other (income) expense,
net
|
|
(160)
|
|
(140)
|
|
14.5
|
|
|
|
|
|
|
|
|
|
Earnings before
taxes
|
|
5,228
|
|
3,391
|
|
54.2
|
|
|
|
|
|
|
|
|
|
Taxes on
earnings
|
|
763
|
|
409
|
|
86.5
|
2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
|
|
$4,465
|
|
$2,982
|
|
49.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings Excluding
Specified Items, as described below
|
|
$5,619
|
|
$4,483
|
|
25.3
|
3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share
|
|
$2.51
|
|
$1.66
|
|
51.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Common Share,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding Specified
Items, as described below
|
|
$3.16
|
|
$2.49
|
|
26.9
|
3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus Dilutive Common
Stock Options
|
|
1,770
|
|
1,792
|
|
|
|
|
|
|
|
|
|
|
|
NOTES:
|
|
See tables titled
"Non-GAAP Reconciliation of Financial Information" for an
explanation of certain non-GAAP financial information.
|
n/m = Percent change is
not meaningful.
|
See footnotes on the
following below.
|
|
|
1)
|
2021 Cost of products
sold, excluding amortization expense includes approximately $500
million of charges associated with a restructuring plan to align
Abbott's manufacturing network for COVID-19 diagnostic tests with
changes during the second quarter in projected testing
demand.
|
|
|
2)
|
2022 Taxes on Earnings
includes the recognition of approximately $27 million of net tax
expense as a result of the resolution of various tax positions
related to prior years and approximately $32 million in excess tax
benefits associated with share-based compensation.
|
|
|
|
2021 Taxes on Earnings
includes the recognition of approximately $90 million in excess tax
benefits associated with share-based compensation.
|
|
|
3)
|
2022 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $1.154 billion, or $0.65 per
share, for intangible amortization, charges related to a voluntary
recall and other net expenses primarily associated with
acquisitions.
|
|
|
|
2021 Net Earnings and
Diluted Earnings per Common Share, excluding Specified Items,
excludes net after-tax charges of $1.501 billion, or $0.83 per
share, for intangible amortization and other net expenses primarily
associated with restructuring actions, certain litigation and
acquisitions.
|
Abbott Laboratories and
Subsidiaries
Non-GAAP Reconciliation of
Financial Information
Second Quarter Ended June 30, 2022 and 2021
(in millions, except per share
data)
(unaudited)
|
|
|
|
|
2Q22
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
507
|
|
$ (507)
|
|
$
--
|
|
|
Gross Margin
|
|
5,817
|
|
563
|
|
6,380
|
|
56.7 %
|
R&D
|
|
684
|
|
(32)
|
|
652
|
|
5.8 %
|
SG&A
|
|
2,757
|
|
(14)
|
|
2,743
|
|
24.4 %
|
Other (income) expense,
net
|
|
(82)
|
|
(12)
|
|
(94)
|
|
|
Earnings before
taxes
|
|
2,352
|
|
621
|
|
2,973
|
|
|
Taxes on
Earnings
|
|
334
|
|
97
|
|
431
|
|
|
Net Earnings
|
|
2,018
|
|
524
|
|
2,542
|
|
|
Diluted Earnings per
Share
|
|
$1.14
|
|
$0.29
|
|
$1.43
|
|
|
|
Specified items reflect
intangible amortization expense of $507 million and other net
expenses of $114 million that includes costs associated with a
product recall, acquisitions, and other net expenses. See tables
titled "Details of Specified Items" for additional details
regarding specified items.
|
|
|
2Q21
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
504
|
|
$ (504)
|
|
$
--
|
|
|
Gross Margin
|
|
4,772
|
|
1,048
|
|
5,820
|
|
56.9 %
|
R&D
|
|
654
|
|
(18)
|
|
636
|
|
6.2 %
|
SG&A
|
|
2,726
|
|
(90)
|
|
2,636
|
|
25.8 %
|
Other (income) expense,
net
|
|
(79)
|
|
35
|
|
(44)
|
|
|
Earnings before
taxes
|
|
1,348
|
|
1,121
|
|
2,469
|
|
|
Taxes on
Earnings
|
|
159
|
|
195
|
|
354
|
|
|
Net Earnings
|
|
1,189
|
|
926
|
|
2,115
|
|
|
Diluted Earnings per
Share
|
|
$0.66
|
|
$0.51
|
|
$1.17
|
|
|
|
Specified items reflect
intangible amortization expense of $504 million and other net
expenses of $617 million, primarily associated with restructuring
actions, certain litigation, acquisitions 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
First Half Ended June 30, 2022 and 2021
(in millions, except per share
data)
(unaudited)
|
|
|
|
|
1H22
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
1,019
|
|
$
(1,019)
|
|
$
--
|
|
|
Gross Margin
|
|
12,213
|
|
1,199
|
|
13,412
|
|
57.9 %
|
R&D
|
|
1,381
|
|
(65)
|
|
1,316
|
|
5.7 %
|
SG&A
|
|
5,544
|
|
(53)
|
|
5,491
|
|
23.7 %
|
Other (income) expense,
net
|
|
(160)
|
|
(27)
|
|
(187)
|
|
|
Earnings before
taxes
|
|
5,228
|
|
1,344
|
|
6,572
|
|
|
Taxes on
Earnings
|
|
763
|
|
190
|
|
953
|
|
|
Net Earnings
|
|
4,465
|
|
1,154
|
|
5,619
|
|
|
Diluted Earnings per
Share
|
|
$2.51
|
|
$0.65
|
|
$3.16
|
|
|
|
|
|
|
|
|
|
|
|
Specified items reflect
intangible amortization expense of $1.019 billion and other net
expenses of $325 million that includes costs associated with a
product recall, acquisitions, and other net expenses. See tables
titled "Details of Specified Items" for additional details
regarding specified items.
|
|
|
1H21
|
|
|
As
Reported
(GAAP)
|
|
Specified
Items
|
|
As
Adjusted
|
|
% to
Sales
|
|
|
|
|
|
|
|
|
|
Intangible
Amortization
|
|
$
1,013
|
|
$
(1,013)
|
|
$
--
|
|
|
Gross Margin
|
|
10,318
|
|
1,597
|
|
11,915
|
|
57.6 %
|
R&D
|
|
1,308
|
|
(46)
|
|
1,262
|
|
6.1 %
|
SG&A
|
|
5,509
|
|
(244)
|
|
5,265
|
|
25.5 %
|
Other (income) expense,
net
|
|
(140)
|
|
23
|
|
(117)
|
|
|
Earnings before
taxes
|
|
3,391
|
|
1,864
|
|
5,255
|
|
|
Taxes on
Earnings
|
|
409
|
|
363
|
|
772
|
|
|
Net Earnings
|
|
2,982
|
|
1,501
|
|
4,483
|
|
|
Diluted Earnings per
Share
|
|
$1.66
|
|
$0.83
|
|
$2.49
|
|
|
|
Specified items reflect
intangible amortization expense of $1.013 billion and other net
expenses of $851 million, primarily associated with restructuring
actions, certain litigation, acquisitions and other expenses. See
tables titled "Details of Specified Items" for additional details
regarding specified items.
|
A reconciliation of the
second-quarter tax rates for 2022 and 2021 is shown
below:
|
|
|
|
|
2Q22
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
As reported
(GAAP)
|
|
$2,352
|
|
$
334
|
|
14.2 %
|
Specified
items
|
|
621
|
|
97
|
|
|
Excluding specified
items
|
|
$2,973
|
|
$431
|
|
14.5 %
|
|
|
|
|
|
|
|
|
|
|
|
2Q21
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
As reported
(GAAP)
|
|
$1,348
|
|
$159
|
|
11.9 %
|
Specified
items
|
|
1,121
|
|
195
|
|
|
Excluding specified
items
|
|
$2,469
|
|
$354
|
|
14.4 %
|
A reconciliation of the
year-to-date tax rates for 2022 and 2021 is shown below:
|
|
|
|
|
1H22
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$5,228
|
|
$
763
|
|
14.6 %
|
1)
|
Specified
items
|
|
1,344
|
|
190
|
|
|
|
Excluding specified
items
|
|
$6,572
|
|
$953
|
|
14.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1H21
|
|
($ in
millions)
|
|
Pre-Tax
Income
|
|
Taxes on
Earnings
|
|
Tax
Rate
|
|
As reported
(GAAP)
|
|
$3,391
|
|
$409
|
|
12.1 %
|
2)
|
Specified
items
|
|
1,864
|
|
363
|
|
|
|
Excluding specified
items
|
|
$5,255
|
|
$772
|
|
14.7 %
|
|
|
|
|
|
|
|
|
|
|
1)
|
2022 Taxes on Earnings
includes the recognition of approximately $27 million of net tax
expense as a result of the resolution of various tax positions
related to prior years and approximately $32 million in excess tax
benefits associated with share-based compensation.
|
|
|
2)
|
2021 Taxes on Earnings
includes the recognition of approximately $90 million in excess tax
benefits associated with share-based compensation.
|
Abbott Laboratories
and Subsidiaries
Details of Specified Items
Second Quarter Ended June 30, 2022
(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
|
|
$
(6)
|
|
$
507
|
|
$ 42
|
|
$ 563
|
R&D
|
(5)
|
|
--
|
|
--
|
|
(27)
|
|
(32)
|
SG&A
|
(7)
|
|
--
|
|
--
|
|
(7)
|
|
(14)
|
Other (income) expense,
net
|
(4)
|
|
--
|
|
--
|
|
(8)
|
|
(12)
|
Earnings before
taxes
|
$
36
|
|
$
(6)
|
|
$
507
|
|
$ 84
|
|
621
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
97
|
Net Earnings
|
|
|
|
|
|
|
|
|
$ 524
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
$ 0.29
|
|
The table above
provides additional details regarding the specified items described
on tables titled "Non-GAAP Reconciliation of Financial
Information."
|
|
|
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. The Gross Margin amount includes a
credit associated with the charges taken in the second quarter of
2021 for a restructuring plan related to Abbott's manufacturing
network for COVID-19 diagnostic tests.
|
c)
|
Other includes costs
related to a voluntary recall within the Nutrition segment and
incremental costs to comply with the European Union's Medical
Device (MDR) and In Vitro Diagnostics Medical Device (IVDR)
Regulations for previously approved products.
|
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
Second Quarter Ended June 30, 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
|
|
$
21
|
|
$
510
|
|
$
504
|
|
$ 13
|
|
$
1,048
|
R&D
|
|
(3)
|
|
1
|
|
--
|
|
(16)
|
|
(18)
|
SG&A
|
|
(18)
|
|
2
|
|
--
|
|
(74)
|
|
(90)
|
Other (income) expense,
net
|
|
(3)
|
|
--
|
|
--
|
|
38
|
|
35
|
Earnings before
taxes
|
|
$
45
|
|
$
507
|
|
$
504
|
|
$ 65
|
|
1,121
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
|
195
|
Net Earnings
|
|
|
|
|
|
|
|
|
|
$ 926
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
|
$ 0.51
|
|
The table above
provides additional details regarding the specified items on tables
titled "Non-GAAP Reconciliation of Financial
Information."
|
|
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. The Gross Margin amount includes
charges associated with a restructuring plan to align Abbott's
manufacturing network for COVID-19 diagnostic tests with changes
during the second quarter in projected testing demand.
|
c)
|
Other includes costs
related to certain litigation and the impairment of an intangible
asset, as well as a gain on the disposition of an equity method
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 Half Ended June 30, 2022
(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
|
|
$
41
|
|
$
(12)
|
|
$
1,019
|
|
$ 151
|
|
$
1,199
|
R&D
|
|
(7)
|
|
(1)
|
|
--
|
|
(57)
|
|
(65)
|
SG&A
|
|
(18)
|
|
--
|
|
--
|
|
(35)
|
|
(53)
|
Other (income) expense,
net
|
|
(11)
|
|
--
|
|
--
|
|
(16)
|
|
(27)
|
Earnings before
taxes
|
|
$
77
|
|
$
(11)
|
|
$
1,019
|
|
$ 259
|
|
1,344
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
|
190
|
Net Earnings
|
|
|
|
|
|
|
|
|
|
$
1,154
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
|
$ 0.65
|
|
|
|
|
|
|
|
|
|
|
|
The table above
provides additional details regarding the specified items on tables
titled "Non-GAAP Reconciliation of Financial
Information."
|
|
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. The Gross Margin amount includes a
credit associated with the charges taken in the second quarter of
2021 for a restructuring plan related to Abbott's manufacturing
network for COVID-19 diagnostic tests.
|
c)
|
Other includes charges
related to a voluntary recall within the Nutrition segment and
incremental costs to comply with the European Union's Medical
Device (MDR) and In Vitro Diagnostics Medical Device (IVDR)
Regulations for previously approved products.
|
d)
|
Reflects the net tax
benefit associated with the specified items, excess tax benefits
associated with share-based compensation and net tax expense as a
result of the resolution of various tax positions related to prior
years.
|
Abbott Laboratories
and Subsidiaries
Details of Specified Items
First Half Ended June 30, 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
|
|
$
40
|
|
$
529
|
|
$
1,013
|
|
$ 15
|
|
$
1,597
|
R&D
|
|
(5)
|
|
1
|
|
--
|
|
(42)
|
|
(46)
|
SG&A
|
|
(31)
|
|
1
|
|
--
|
|
(214)
|
|
(244)
|
Other (income) expense,
net
|
|
(3)
|
|
1
|
|
--
|
|
25
|
|
23
|
Earnings before
taxes
|
|
$
79
|
|
$
526
|
|
$
1,013
|
|
$ 246
|
|
1,864
|
Taxes on Earnings
(d)
|
|
|
|
|
|
|
|
|
|
363
|
Net Earnings
|
|
|
|
|
|
|
|
|
|
$
1,501
|
Diluted Earnings per
Share
|
|
|
|
|
|
|
|
|
|
$ 0.83
|
|
The table above
provides additional details regarding the specified items on tables
titled "Non-GAAP Reconciliation of Financial
Information."
|
|
|
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. The Gross Margin amount includes
charges associated with a restructuring plan to align Abbott's
manufacturing network for COVID-19 diagnostic tests with changes
during the second quarter in projected testing demand.
|
c)
|
Other primarily relates
to the costs related to certain litigation, the acquisition of a
research and development asset, the impairments of an equity
investment and an intangible asset, and the gain on the disposition
of an equity method investment.
|
d)
|
Reflects the net tax
benefit associated with the specified items and excess tax benefits
associated with share-based compensation.
|
View original
content:https://www.prnewswire.com/news-releases/abbott-reports-second-quarter-2022-results-and-raises-full-year-eps-guidance-301590017.html
SOURCE Abbott