- FIRST-QUARTER GAAP EPS FROM CONTINUING OPERATIONS OF $0.22; ADJUSTED EPS FROM CONTINUING OPERATIONS OF $0.48, ABOVE PREVIOUS GUIDANCE RANGE OF $0.42 TO $0.44
- FIRST-QUARTER REPORTED SALES GROWTH OF 29.7 PERCENT; COMPARABLE OPERATIONAL SALES GROWTH OF 3.2 PERCENT
- FULL-YEAR 2017 EPS GUIDANCE RANGE FOR CONTINUING OPERATIONS REMAINS UNCHANGED
- COMPLETED ACQUISITION OF ST. JUDE MEDICAL, CREATING A PREMIER MEDICAL DEVICE LEADER
ABBOTT PARK, Ill., April 19, 2017 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the first quarter ended March 31, 2017.
- Reported diluted EPS from continuing operations under GAAP was $0.22 in the first quarter. Excluding specified items, adjusted diluted EPS from continuing operations was $0.48 in the first quarter, above the previous guidance range of $0.42 to $0.44.
- First-quarter worldwide sales of $6.3 billion increased 29.7 percent on a reported basis and 3.2 percent on a comparable operational basis.
- On Jan. 4, 2017, Abbott completed the acquisition of St. Jude Medical, establishing the company as a leader in the broad medical device arena and providing expanded opportunities for future growth.
- In the first quarter, Abbott received FDA approval for MRI-conditional labeling for both the Assurity MRITM pacemaker and the TendrilTM MRI pacing lead. Abbott submitted for FDA approval of MRI-conditional labeling for its EllipseTM implantable cardioverter defibrillator (ICD) system.
- In January, Abbott initiated the U.S. launch of its new Ensite PrecisionTM cardiac mapping system, which helps physicians more effectively treat patients experiencing arrhythmias in the heart, and initiated the international launch of its new AlinityTM diagnostics systems.
- In February, Abbott released real-world data from more than 50,000 users of its sensor-based FreeStyle® Libre glucose monitoring system. The data showed that FreeStyle Libre use was associated with higher frequency of glucose testing and better diabetes outcomes, including improved control of glucose levels.
“Our first quarter results reflect a strong start to the year,” said Miles D. White, chairman and chief executive officer, Abbott. “The integration of St. Jude is going well and recently launched products are contributing to double-digit sales growth across several areas of our Medical Devices business.”
FIRST-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on a comparable operational basis is an appropriate way for investors to best understand the underlying performance of the business.
Comparable operational sales growth excludes the impact of exchange and for Total Abbott and Medical Devices, also includes prior year results for St. Jude Medical, which was acquired on Jan. 4, 2017, and excludes prior year and current year results for the Abbott Medical Optics (AMO) and St. Jude Medical vascular closure businesses, which were divested during the first quarter 2017. Comparable operational sales growth also reflects a reduction to St. Jude Medical’s historic sales related to administrative fees paid to conform to Abbott’s presentation, as further described in Form 8-K issued on April 18, 2017.
Following are sales by business segment and commentary for the first quarter:
Total Company
($ in millions)
% Change vs. 1Q16 | ||||||||||||||||||
Sales 1Q17 | Reported | Comparable Operational | ||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | U.S. | Int’l | Total | ||||||||||
Total * | 2,324 | 4,011 | 6,335 | 51.8 | 19.6 | 29.7 | 3.9 | 2.8 | 3.2 | |||||||||
Nutrition | 730 | 912 | 1,642 | 1.6 | (4.3) | (1.7) | 1.6 | (3.0) | (1.0) | |||||||||
Diagnostics | 371 | 787 | 1,158 | 9.4 | 1.1 | 3.6 | 9.4 | 2.6 | 4.7 | |||||||||
Established Pharmaceuticals | -- | 950 | 950 | n/a | 7.0 | 7.0 | n/a | 5.7 | 5.7 | |||||||||
Medical Devices | 1,136 | 1,259 | 2,395 | 144.0 | 72.2 | 100.2 | 3.6 | 5.4 | 4.5 | |||||||||
n/a = Not Applicable. |
* In 2017, Total Abbott sales from continuing operations include Other Sales of $190 million, including sales of $175 million from the AMO business, which was divested during the first quarter 2017. In 2016, the AMO business was reported as part of the Medical Devices group. Comparable operational growth rates above exclude results from the AMO business. |
Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates. |
First-quarter 2017 worldwide sales of $6.3 billion increased 29.7 percent on a reported basis. On a comparable operational basis, worldwide sales increased 3.2 percent. Refer to the final table for a reconciliation of comparable historical revenue.
Nutrition
($ in millions)
% Change vs. 1Q16 | ||||||||||||||||||
Sales 1Q17 | Reported | Comparable Operational | ||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | U.S. | Int’l | Total | ||||||||||
Total | 730 | 912 | 1,642 | 1.6 | (4.3) | (1.7) | 1.6 | (3.0) | (1.0) | |||||||||
Pediatric | 432 | 495 | 927 | 7.3 | (12.2) | (4.1) | 7.3 | (10.8) | (3.3) | |||||||||
Adult | 298 | 417 | 715 | (5.6) | 7.3 | 1.5 | (5.6) | 8.3 | 2.0 | |||||||||
Worldwide Nutrition sales decreased 1.7 percent on a reported basis in the first quarter, including an unfavorable 0.7 percent effect of foreign exchange, and decreased 1.0 percent on an operational basis.
Worldwide Pediatric Nutrition sales decreased 4.1 percent on a reported basis in the first quarter, including an unfavorable 0.8 percent effect of foreign exchange, and decreased 3.3 percent on an operational basis. In the U.S., above-market sales growth was led by continued uptake of several recently launched infant formula products. International sales declined 12.2 percent on a reported basis and 10.8 percent on an operational basis. As expected, challenging conditions in the Chinese infant formula market continued to impact international performance.
Worldwide Adult Nutrition sales increased 1.5 percent on a reported basis in the first quarter, including an unfavorable 0.5 percent effect of foreign exchange, and increased 2.0 percent on an operational basis.
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