April 18, 2012
Abbott Park, Illinois (NYSE: ABT) — Abbott today announced financial results for the first quarter ended March 31, 2012.
Diluted earnings per share, excluding specified items, were $1.03, reflecting 13.2 percent growth and exceeding Abbott's previous guidance range. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.78, including specified items, reflecting 41.8 percent growth.
Excluding foreign exchange, worldwide sales increased nearly 6 percent. Reported sales increased 4.6 percent, including an unfavorable 1.3 percent effect of foreign exchange.
Abbott is raising its ongoing earnings-per-share guidance for 2012 to $5.00 to $5.10 from $4.95 to $5.05, reflecting another year of expected strong performance.
First-quarter results included an adjusted gross margin ratio of 61.1 percent, an increase of 260 basis points over 2011, driven by improved efficiencies across a number of operating divisions and favorable product mix.
The adjusted operating margin increased 150 basis points over 2011, driven by improvement in the combined diversified medical products businesses as well as the research-based pharmaceutical business.
"Abbott is off to a strong start in 2012, delivering double-digit ongoing earnings-per-share growth," said Miles D. White, chairman and chief executive officer, Abbott. "As a result, we're raising our outlook for the full year. During the quarter, we also announced a number of new product launches and strategic partnerships to enhance the pipelines of each of our major businesses. And, we remain focused on the process of separating Abbott into two leading health care companies, which remains on track to be completed by the end of the year.
Business Highlights
Released Strong Phase 2 Results from Abbott's Advancing Hepatitis C Program
Released clinical trial results from two interferon-free, Phase 2 studies for the treatment of hepatitis C, PILOT and CO-PILOT. Additional data from the studies will be presented later this week at the annual meeting of the European Association for the Study of the Liver (EASL).
Announced Collaboration for Novel Oral Therapy to Treat Autoimmune Diseases
Announced a global collaboration with Galapagos to develop and commercialize an oral, next-generation JAK1 inhibitor in Phase 2 development with the potential to treat rheumatoid arthritis and other autoimmune diseases.
Received FDA Approval for Absolute Pro Vascular Self-Expanding Stent for Iliac Artery Disease
Announced U.S. Food and Drug Administration (FDA) approval of the Absolute Pro® Vascular Self-Expanding Stent System for the treatment of iliac artery disease, a form of peripheral artery disease that affects the lower extremities.
Received European Approval for HUMIRA in Ulcerative Colitis
Received approval from the European Committee for Medicinal Products for Human Use (CHMP) for HUMIRA® in adults with moderate to severely active ulcerative colitis (UC). HUMIRA is the first and only self-injectable biologic therapy available for UC patients in Europe.
Received CE Mark for PLEX-ID Molecular System and Tests
Received CE Mark in Europe for Abbott's rapid, high-throughput PLEX-ID™ instrument, along with three assays for use on the system. PLEX-ID addresses a significant unmet need for rapid detection and identification of a broad-range of infection-causing microbes.
Announced New Nutrition Manufacturing Facility in the United States
Announced plans to build a nutrition manufacturing facility in Tipp City, Ohio, to produce three of the company's fastest-growing adult brands, PediSure®, Ensure® and Glucerna®, for the North American market. The plant is expected to be operational in late 2013.
Received FDA Clearance for New FreeStyle InsuLinx Blood Glucose Monitoring System
Announced FDA clearance for the FreeStyle InsuLinx Blood Glucose Monitoring System, the first from Abbott to include a touch-screen interface, automated logbook and several personalization features designed to improve the diabetes management experience for patients.
Announced Patient Enrollment in Two Phase 3 Studies of HUMIRA for HS
Initiated two Phase 3 clinical trials designed to evaluate the safety and efficacy of an investigational use of HUMIRA in adult patients with moderate to severe hidradenitis suppurativa (HS), a condition for which there are currently no approved treatments.
Presented Data on Key Vascular Devices at ACC 2012
Presented new data on Abbott's leading Vascular pipeline, including study results in patients at high surgical risk treated with the investigational MitraClip® system, and two-year clinical results on the investigational Absorb™ bioresorbable vascular scaffold.
Announced Results from Phase 3 Clinical Trial Evaluating LCIG
Announced positive results from a Phase 3 trial evaluating Abbott's investigational treatment for advanced Parkinson's disease, levodopa-carbidopa intestinal gel (LCIG), which showed significant improvements over levodopa-carbidopa immediate release tablets.
Abbott raises ongoing earnings-per-share outlook for 2012
Abbott is raising its ongoing earnings-per-share guidance for the full-year 2012 to $5.00 to $5.10 from $4.95 to $5.05, reflecting another year of expected strong performance.
Abbott forecasts specified items for the full-year 2012 of approximately $0.52 per share, primarily associated with in-process R&D, acquisition integration and cost-reduction initiatives. Including these specified items, projected earnings per share under Generally Accepted Accounting Principles (GAAP) would be $4.48 to $4.58 for the full-year 2012. This forecast of specified items excludes additional future one-time separation and bond refinancing costs related to the planned separation of Abbott into two companies, which will be quantified at a later date.
Abbott declares 353rd quarterly dividend
On Feb. 17, 2012, the board of directors of Abbott declared the company's quarterly common dividend of 51 cents per share. The cash dividend is payable May 15, 2012, to shareholders of record at the close of business on April 13, 2012. This marks the 353rd consecutive dividend paid by Abbott since 1924. Abbott is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividends for 25 consecutive years.
About Abbott
Abbott (NYSE: ABT) is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs approximately 91,000 people and markets its products in more than 130 countries.
Abbott will webcast its live first-quarter earnings conference call through its Investor Relations Web site at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the call will be available after 11 a.m. Central time.
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, including the planned separation of the research-based pharmaceutical company from the diversified medical products company and the expected financial results of the two companies after the separation. 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, 2011, 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.