Abbott Reports Second-Quarter 2018 Results
ABBOTT PARK, Ill., July 18, 2018 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2018.
- Second-quarter worldwide sales of $7.8 billion increased 17.0 percent on a reported basis and 8.0 percent on an organic* basis.
- Reported diluted EPS from continuing operations under GAAP was $0.40 in the second quarter.
- Adjusted diluted EPS from continuing operations, which excludes specified items, was $0.73, above Abbott's previous guidance range.
- Abbott is raising its full-year 2018 EPS guidance range, which continues to reflect strong double-digit growth. Abbott projects full-year diluted EPS from continuing operations on a GAAP basis of $1.34 to $1.40. Projected full-year adjusted diluted EPS from continuing operations is now $2.85 to $2.91.
- In May, Abbott received approval from the U.S. FDA for XIENCE Sierra™, the newest generation of its gold-standard coronary stent system, which offers design and technology advances to provide an easier implant and greater ability to treat complex blockages. During the second quarter, XIENCE Sierra also received national reimbursement in Japan to treat people with coronary artery disease.
- In May, Abbott announced U.S. FDA clearance of Advisor™ HD Grid Mapping Catheter, Sensor Enabled™, which creates highly detailed maps of the heart and expands Abbott's leading electrophysiology product portfolio.
- In July, Abbott received U.S. FDA approval for a next-generation version of its leading MitraClip® heart valve repair device. This new version includes design advancements that simplify the minimally invasive procedure and enable more patients to be treated with MitraClip.
"All four of our businesses exceeded expectations and contributed to strong growth overall," said Miles D. White, chairman and chief executive officer, Abbott. "We forecast continued strong performance and are raising our full-year outlook despite recent currency shifts."
* See note on organic growth below.
SECOND-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business.
Organic sales growth:
- Excludes prior year results for the Abbott Medical Optics (AMO) and St. Jude Medical vascular closure businesses, which were divested during the first quarter 2017;
- Excludes the current and prior year results for Rapid Diagnostics, which reflect results for Alere Inc., which was acquired on Oct. 3, 2017; and
- Excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the second quarter and first half 2018:
Total Company | |||||||||||||||||
($ in millions) | |||||||||||||||||
% Change vs. 2Q17 | |||||||||||||||||
Sales 2Q18 |
Reported |
Organic | |||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | |||||||||
Total * |
2,702 |
5,065 |
7,767 |
14.5 |
18.4 |
17.0 |
3.5 |
10.5 |
8.0 | ||||||||
Nutrition |
781 |
1,077 |
1,858 |
1.0 |
12.5 |
7.3 |
1.0 |
10.7 |
6.4 | ||||||||
Diagnostics |
652 |
1,221 |
1,873 |
69.1 |
37.6 |
47.2 |
2.2 |
8.5 |
6.6 | ||||||||
Established Pharmaceuticals |
-- |
1,129 |
1,129 |
n/a |
10.5 |
10.5 |
n/a |
12.3 |
12.3 | ||||||||
Medical Devices |
1,259 |
1,632 |
2,891 |
5.7 |
16.1 |
11.3 |
5.7 |
10.3 |
8.2 |
* Total 2018 Abbott sales from continuing operations include Other Sales of $16 million. |
% Change vs. 1H17 | |||||||||||||||||
Sales 1H18 |
Reported |
Organic | |||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | |||||||||
Total * |
5,377 |
9,780 |
15,157 |
14.8 |
18.0 |
16.8 |
4.2 |
9.3 |
7.5 | ||||||||
Nutrition |
1,539 |
2,075 |
3,614 |
2.4 |
11.0 |
7.2 |
2.4 |
8.1 |
5.6 | ||||||||
Diagnostics |
1,352 |
2,358 |
3,710 |
78.9 |
40.8 |
52.6 |
2.0 |
7.9 |
6.1 | ||||||||
Established Pharmaceuticals |
-- |
2,173 |
2,173 |
n/a |
10.2 |
10.2 |
n/a |
9.7 |
9.7 | ||||||||
Medical Devices |
2,468 |
3,167 |
5,635 |
6.0 |
18.9 |
12.9 |
6.3 |
11.0 |
8.8 |
* Total 2018 Abbott sales from continuing operations include Other Sales of $25 million. |
n/a = Not Applicable. |
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. |
Second-quarter 2018 worldwide sales of $7.8 billion increased 17.0 percent on a reported basis. On an organic basis, worldwide sales increased 8.0 percent. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Nutrition | |||||||||||||||||
($ in millions) | |||||||||||||||||
% Change vs. 2Q17 | |||||||||||||||||
Sales 2Q18 |
Reported |
Organic | |||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | |||||||||
Total |
781 |
1,077 |
1,858 |
1.0 |
12.5 |
7.3 |
1.0 |
10.7 |
6.4 | ||||||||
Pediatric |
469 |
582 |
1,051 |
2.1 |
10.2 |
6.4 |
2.1 |
8.1 |
5.3 | ||||||||
Adult |
312 |
495 |
807 |
(0.7) |
15.2 |
8.5 |
(0.7) |
13.9 |
7.8 | ||||||||
% Change vs. 1H17 | |||||||||||||||||
Sales 1H18 |
Reported |
Organic | |||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | |||||||||
Total |
1,539 |
2,075 |
3,614 |
2.4 |
11.0 |
7.2 |
2.4 |
8.1 |
5.6 | ||||||||
Pediatric |
917 |
1,128 |
2,045 |
2.9 |
10.3 |
6.8 |
2.9 |
7.2 |
5.2 | ||||||||
Adult |
622 |
947 |
1,569 |
1.6 |
11.9 |
7.6 |
1.6 |
9.3 |
6.1 |
Worldwide Nutrition sales increased 7.3 percent on a reported basis in the second quarter, including a favorable 0.9 percent effect of foreign exchange, and increased 6.4 percent on an organic basis.
Worldwide Pediatric Nutrition sales increased 6.4 percent on a reported basis in the second quarter, including a favorable 1.1 percent effect of foreign exchange, and increased 5.3 percent on an organic basis. International sales increased 10.2 percent on a reported basis, including a favorable 2.1 percent effect of foreign exchange, and increased 8.1 percent on an organic basis. Strong performance in the quarter was led by growth in several countries across Asia, including Greater China, and Latin America.
Worldwide Adult Nutrition sales increased 8.5 percent on a reported basis in the second quarter, including a favorable 0.7 percent effect of foreign exchange, and increased 7.8 percent on an organic basis. International sales increased 15.2 percent on a reported basis, including a favorable 1.3 percent effect of foreign exchange, and increased 13.9 percent on an organic basis. Sales performance was led by strong growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading diabetes-specific nutrition brand.
Diagnostics | |||||||||||||||||
($ in millions) | |||||||||||||||||
% Change vs. 2Q17 | |||||||||||||||||
Sales 2Q18 |
Reported |
Organic | |||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | |||||||||
Total * |
652 |
1,221 |
1,873 |
69.1 |
37.6 |
47.2 |
2.2 |
8.5 |
6.6 | ||||||||
Core Laboratory |
248 |
880 |
1,128 |
6.8 |
11.7 |
10.6 |
6.8 |
7.9 |
7.7 | ||||||||
Molecular |
38 |
84 |
122 |
(7.3) |
16.6 |
7.9 |
(7.3) |
13.6 |
6.0 | ||||||||
Point of Care |
108 |
31 |
139 |
(3.9) |
12.0 |
(0.8) |
(3.9) |
9.7 |
(1.3) | ||||||||
Rapid Diagnostics * |
258 |
226 |
484 |
n/m |
n/m |
n/m |
n/m |
n/m |
n/m |
* Rapid Diagnostics reflects sales from Alere Inc., which was acquired on Oct. 3, 2017. Organic growth rates above exclude results from the Rapid Diagnostics business. |
% Change vs. 1H17 | |||||||||||||||||
Sales 1H18 |
Reported |
Organic | |||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | |||||||||
Total * |
1,352 |
2,358 |
3,710 |
78.9 |
40.8 |
52.6 |
2.0 |
7.9 |
6.1 | ||||||||
Core Laboratory |
476 |
1,671 |
2,147 |
6.2 |
12.7 |
11.2 |
6.2 |
7.3 |
7.0 | ||||||||
Molecular |
77 |
163 |
240 |
(10.7) |
17.0 |
6.4 |
(10.7) |
12.6 |
3.7 | ||||||||
Point of Care |
218 |
62 |
280 |
(1.7) |
17.3 |
1.9 |
(1.7) |
14.0 |
1.3 | ||||||||
Rapid Diagnostics * |
581 |
462 |
1,043 |
n/m |
n/m |
n/m |
n/m |
n/m |
n/m |
* Rapid Diagnostics reflects sales from Alere Inc., which was acquired on Oct. 3, 2017. Organic growth rates above exclude results from the Rapid Diagnostics business. |
n/m = Percent change is not meaningful. |
Worldwide Diagnostics sales increased 47.2 percent on a reported basis in the second quarter. On an organic basis, sales increased 6.6 percent. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Core Laboratory Diagnostics sales increased 10.6 percent on a reported basis in the second quarter, including a favorable 2.9 percent effect of foreign exchange, and increased 7.7 percent on an organic basis. Growth in the quarter was driven by continued share gains globally.
Molecular Diagnostics sales increased 7.9 percent on a reported basis in the second quarter, including a favorable 1.9 percent effect of foreign exchange, and increased 6.0 percent on an organic basis. Worldwide sales were led by strong growth in infectious disease testing, Abbott's core area of focus in the molecular diagnostics market, which was partially offset by a planned scale down in other testing areas, primarily in the U.S.
Point of Care Diagnostics sales decreased 0.8 percent on a reported basis in the second quarter, including a favorable 0.5 percent effect of foreign exchange, and decreased 1.3 percent on an organic basis.
Rapid Diagnostics worldwide sales of $484 million were led by infectious disease and cardiometabolic testing.
Established Pharmaceuticals | |||||||||||||||||
($ in millions) | |||||||||||||||||
% Change vs. 2Q17 | |||||||||||||||||
Sales 2Q18 |
- 18 Jul 2018
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