OREANDA-NEWS. Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2015.
  • Second-quarter worldwide sales of $5.2 billion increased 10.8 percent on an operational basis and 2.2 percent on a reported basis. Worldwide sales increased 6.4 percent excluding the impact of 2014 acquisitions and foreign exchange.
  • Diluted EPS from continuing operations on both an adjusted and GAAP basis was $0.52 in the second quarter.
  • Abbott's full-year 2015 adjusted EPS guidance range for continuing operations remains unchanged at $2.10 to $2.20. Projected full-year 2015 EPS for continuing operations under GAAP is $1.50 to $1.60.
  • Second-quarter gross margin ratio was ahead of expectations, primarily driven by continued improvements in Diagnostics and Nutrition.
  • In the second quarter, Abbott received European approval for Absorb GT1TM, which combines the world's first fully dissolving stent with a next-generation delivery catheter; completed submissions for regulatory approval of Absorb in Japan and the U.S.; submitted for U.S. regulatory approval of its FreeStyle® Libre Pro Flash Glucose Monitoring System for professional use; and received U.S. FDA clearance for a first-of-its-kind blood test for its i-STAT® handheld system to aid in detecting early pregnancy in emergency situations.

"We've achieved another quarter of strong sales growth led by our global diagnostics and branded generics businesses," said Miles D. White, chairman and chief executive officer, Abbott. "We're well on track to achieve our financial objectives for the year despite a challenging currency environment."

SECOND-QUARTER BUSINESS OVERVIEW

Note: Prior year financial results have been adjusted to exclude the sales from Abbott's developed markets branded generics pharmaceuticals and animal health businesses that were sold to Mylan and Zoetis, respectively, in the first quarter 2015. Therefore, sales and growth rates shown in the following charts represent continuing operations.

Following are sales by business segment and commentary for the second quarter and first half of the year:

Total Company
($ in millions)

               

% Change vs. 2Q14
   

Sales 2Q15

      

Int'l

  

Total
   

U.S.

  

Int'l

  

Total

  

U.S.

  

Operational

  

Reported

  

Operational

  

Reported

Total *

  

1,592

  

3,578

  

5,170

  

3.1

  

14.2

  

1.8

  

10.8

  

2.2

Nutrition

  

729

  

988

  

1,717

  

0.6

  

6.3

  

(1.9)

  

3.9

  

(0.8)

Diagnostics

  

350

  

827

  

1,177

  

7.6

  

9.0

  

(4.3)

  

8.7

  

(1.0)

Established Pharmaceuticals

--

  

977

  

977

  

 n/a 

  

46.0

  

31.3

  

46.0

  

31.3

Medical Devices

  

505

  

784

  

1,289

  

3.0

  

3.1

  

(11.2)

  

3.1

  

(6.1)
 

* Total Abbott Sales from continuing operations include Other Sales of $10 million.

               

% Change vs. 1H14
   

Sales 1H15

      

Int'l

  

Total
   

U.S.

  

Int'l

  

Total

  

U.S.

  

Operational

  

Reported

  

Operational

  

Reported

Total *

  

3,094

  

6,973

  

10,067

  

2.5

  

13.9

  

2.6

  

10.4

  

2.6

Nutrition

  

1,414

  

1,972

  

3,386

  

--

  

8.7

  

1.2

  

5.0

  

0.7

Diagnostics

  

677

  

1,593

  

2,270

  

6.6

  

7.6

  

(4.6)

  

7.3

  

(1.6)

Established Pharmaceuticals

--

  

1,874

  

1,874

  

 n/a 

  

44.5

  

31.5

  

44.5

  

31.5

Medical Devices

  

990

  

1,525

  

2,515

  

3.3

  

1.4

  

(11.7)

  

2.1

  

(6.3)
 

* Total Abbott Sales from continuing operations include Other Sales of $22 million.

n/a = Not Applicable.

Note: Operational growth reflects percentage change over the prior year excluding the impact of exchange rates.

Second-quarter 2015 worldwide sales of $5.2 billion increased 10.8 percent on an operational basis and 2.2 percent on a reported basis, including an unfavorable 8.6 percent effect of foreign exchange. Worldwide sales increased 6.4 percent excluding the impact of 2014 acquisitions and foreign exchange, driven by strong performance in Established Pharmaceuticals and Diagnostics.

International sales increased 14.2 percent on an operational basis and 1.8 percent on a reported basis in the second quarter.

Emerging market sales increased 20.6 percent on an operational basis and 10.0 percent on a reported basis in the second quarter. Excluding the impact of 2014 acquisitions and foreign exchange, emerging market sales increased double digits in the quarter.