FiercePharma says: Citing its purchase of Solvay Pharmaceuticals and removing Meridia from the U.S. and Canadian markets, Abbott Labs' net income dropped 40 percent this quarter. Total earnings were $891 million compared to $1.48 billion last year. According to the company, its profits were $1.05 per share excluding costs resulting from Meridia, Solvay and a Similac baby formula recall in September. Still, the company's results exceeded analysts' expectations.
- Diluted earnings per share, excluding specified items, were $1.05, reflecting 14.1 percent growth, at the high end of Abbott's previously issued guidance range of $1.03 to $1.05. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.57, primarily reflecting costs associated with recently announced restructuring actions for the integration of the Solvay Pharmaceuticals acquisition.
- Worldwide sales increased 11.8 percent to $8.7 billion, including an unfavorable 1.0 percent effect of foreign exchange rates. Growth in the quarter was driven by worldwide pharmaceutical sales, which increased 21.7 percent, including the contribution from the Solvay acquisition, as well as worldwide vascular products sales, which increased 18.6 percent.
- Third quarter results included strong investment spending, particularly in R&D, as well as an improvement in adjusted gross margin ratio to 61.6 percent.
- Abbott is confirming its 2010 ongoing earnings-per-share guidance and raising the lower end of its previous guidance range. As a result, Abbott's ongoing earnings-per-share guidance for full-year 2010 is now $4.16 to $4.18, excluding specified items.
Abbott's website: http://www.abbott.com/
Full release: Abbott earnings release