Abbott Reports Second-Quarter 2016 Results
- SECOND-QUARTER GAAP EPS FROM CONTINUING OPERATIONS OF $0.40; ADJUSTED EPS FROM CONTINUING OPERATIONS OF $0.55
- SEVERAL NEW PRODUCT APPROVALS AND LAUNCHES ACROSS DIVERSE BUSINESS PORTFOLIO
ABBOTT PARK, Ill., July 20, 2016 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2016.
- Second-quarter worldwide sales of $5.3 billion increased 3.2 percent on a reported basis and 6.4 percent on an operational basis.
- Reported diluted EPS from continuing operations under GAAP was $0.40 in the second quarter. Excluding specified items, adjusted diluted EPS from continuing operations was $0.55 in the second quarter, above the previous guidance range.
- Abbott's full-year 2016 EPS for continuing operations under GAAP is projected to be $1.26 to $1.36. Projected full-year 2016 adjusted EPS for continuing operations remains unchanged at $2.14 to $2.24.
- In July, Abbott received U.S. FDA approval for AbsorbTM, the only fully dissolving heart stent, as well as U.S. FDA approval for TECNIS® Symfony intraocular lenses for the treatment of cataracts, the first and only extended depth of focus lenses for people with cataracts.
- In the second quarter, Abbott announced the global launch of AlinIQ, the first-of-its-kind informatics solution with enhanced capabilities to help diagnostics laboratories increase productivity and flexibility in managing data throughout hospital networks.
- On April 28, 2016, Abbott announced an agreement to acquire St. Jude Medical, Inc. The transaction will create a premier medical device leader with a highly competitive portfolio that will include an industry-leading pipeline across cardiovascular, neuromodulation, diabetes and vision care.
"It was a good quarter," said Miles D. White, chairman and chief executive officer, Abbott. "We're particularly pleased with the steady cadence of new product approvals and recent launches that are contributing to growth, including FreeStyle Libre, MitraClip, Absorb and Symfony."
SECOND-QUARTER BUSINESS OVERVIEW
Following are sales by business segment and commentary for the second quarter and first half of the year:
Total Company
($ in millions)
% Change vs. 2Q15 | ||||||||||||||||
Sales 2Q16 | Int'l | Total | ||||||||||||||
U.S. | Int'l | Total | U.S. | Reported | Operational | Reported | Operational | |||||||||
Total * | 1,655 | 3,678 | 5,333 | 4.0 | 2.8 | 7.5 | 3.2 | 6.4 | ||||||||
Nutrition | 750 | 990 | 1,740 | 3.0 | 0.2 | 5.3 | 1.4 | 4.3 | ||||||||
Diagnostics | 361 | 865 | 1,226 | 3.0 | 4.5 | 7.3 | 4.1 | 6.0 | ||||||||
Established Pharmaceuticals | -- | 980 | 980 | n/a | 0.4 | 9.5 | 0.4 | 9.5 | ||||||||
Medical Devices | 535 | 837 | 1,372 | 6.1 | 6.6 | 7.3 | 6.4 | 6.8 | ||||||||
* Total Abbott Sales from continuing operations include Other Sales of $15 million. | ||||||||||||||||
% Change vs. 1H15 | ||||||||||||||||
Sales 1H16 | Int'l | Total | ||||||||||||||
U.S. | Int'l | Total | U.S. | Reported | Operational | Reported | Operational | |||||||||
Total * | 3,186 | 7,032 | 10,218 | 3.0 | 0.8 | 7.0 | 1.5 | 5.8 | ||||||||
Nutrition | 1,469 | 1,942 | 3,411 | 3.9 | (1.5) | 4.6 | 0.8 | 4.3 | ||||||||
Diagnostics | 700 | 1,644 | 2,344 | 3.3 | 3.2 | 7.7 | 3.2 | 6.4 | ||||||||
Established Pharmaceuticals | -- | 1,868 | 1,868 | n/a | (0.3) | 10.2 | (0.3) | 10.2 | ||||||||
Medical Devices | 1,001 | 1,568 | 2,569 | 1.2 | 2.8 | 5.4 | 2.1 | 3.7 | ||||||||
* Total Abbott Sales from continuing operations include Other Sales of $26 million. |
n/a = Not Applicable. |
Note: Operational growth reflects percentage change over the prior year excluding the impact of exchange rates. 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 2016 worldwide sales of $5.3 billion increased 3.2 percent on a reported basis, including an unfavorable 3.2 percent effect of foreign exchange, and increased 6.4 percent on an operational basis.
International sales increased 2.8 percent on a reported basis and 7.5 percent on an operational basis in the second quarter. International operational growth was led by strong performance across all of Abbott's business segments.
Emerging market sales increased 1.1 percent on a reported basis and 8.5 percent on an operational basis in the second quarter. Excluding the impact of Venezuelan operations, emerging market sales would have increased 4.8 percent on a reported basis and 12.4 percent on an operational basis.
Nutrition
($ in millions)