Abbott Reports Third-Quarter 2018 Results
ABBOTT PARK, Ill., Oct. 17, 2018 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the third quarter ended Sept. 30, 2018.
- Third-quarter worldwide sales of $7.7 billion increased 12.1 percent on a reported basis and 7.8 percent on an organic* basis.
- Reported diluted EPS from continuing operations under GAAP was $0.31 in the third quarter.
- Adjusted diluted EPS from continuing operations, which excludes specified items, was $0.75.
- Abbott narrowed its full-year 2018 diluted EPS guidance range from continuing operations on a GAAP basis to $1.33 to $1.35 and adjusted diluted EPS from continuing operations to $2.87 to $2.89.
- In the U.S., Abbott received FDA approval of its FreeStyle® Libre 14 day sensor, making it the longest lasting wearable glucose sensor available. In October, Abbott obtained CE Mark for its FreeStyle Libre 2 system, a next-generation product offering with optional real-time alarms.
- FreeStyle Libre achieving rapid market uptake, with third-quarter worldwide sales of $304 million, an increase of 101 percent versus prior year.
- In July, Abbott received U.S. FDA approval for its third-generation version of its minimally invasive MitraClip® heart valve repair device. This new version includes design advancements that simplify the procedure and enable more patients to be treated with MitraClip.
- In September, Abbott announced positive clinical results from its landmark COAPT study, which demonstrated that its minimally invasive MitraClip heart valve repair device improved survival and clinical outcomes for select patients with functional mitral regurgitation, a leaky heart valve resulting from advanced heart failure. The COAPT study data will be submitted to the U.S. FDA to support consideration of an expanded indication for MitraClip.
"We achieved another quarter of strong growth and our new product pipeline continues to be highly productive," said Miles D. White, chairman and chief executive officer, Abbott. "In spite of increasing currency headwinds, we're well-positioned to achieve the upper end of our initial full-year guidance."
* See note on organic growth below.
THIRD-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business.
Organic sales growth:
- Excludes prior year results for the Abbott Medical Optics (AMO) and St. Jude Medical vascular closure businesses, which were divested during the first quarter 2017;
- Excludes the current and prior year results for Rapid Diagnostics, which reflect results for Alere Inc., which was acquired on Oct. 3, 2017; and
- Excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the third quarter and first nine months of 2018:
Total Company | ||||||||||||||||||
($ in millions) | ||||||||||||||||||
% Change vs. 3Q17 | ||||||||||||||||||
Sales 3Q18 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 2,707 | 4,949 | 7,656 | 17.0 | 9.6 | 12.1 | 5.2 | 9.2 | 7.8 | |||||||||
Nutrition | 774 | 1,064 | 1,838 | 2.1 | 5.3 | 4.0 | 2.1 | 9.1 | 6.1 | |||||||||
Diagnostics | 666 | 1,158 | 1,824 | 80.2 | 27.3 | 42.6 | 6.1 | 8.1 | 7.5 | |||||||||
Established Pharmaceuticals | -- | 1,159 | 1,159 | n/a | (0.9) | (0.9) | n/a | 5.9 | 5.9 | |||||||||
Medical Devices | 1,258 | 1,557 | 2,815 | 6.9 | 9.7 | 8.4 | 6.9 | 12.2 | 9.8 |
* Total 2018 Abbott sales from continuing operations include Other Sales of $20 million. |
% Change vs. 9M17 | ||||||||||||||||||
Sales 9M18 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 8,084 | 14,729 | 22,813 | 15.5 | 15.0 | 15.2 | 4.6 | 9.2 | 7.6 | |||||||||
Nutrition | 2,313 | 3,139 | 5,452 | 2.3 | 9.0 | 6.1 | 2.3 | 8.5 | 5.8 | |||||||||
Diagnostics | 2,018 | 3,516 | 5,534 | 79.4 | 36.0 | 49.2 | 3.3 | 8.0 | 6.6 | |||||||||
Established Pharmaceuticals | -- | 3,332 | 3,332 | n/a | 6.1 | 6.1 | n/a | 8.3 | 8.3 | |||||||||
Medical Devices | 3,726 | 4,724 | 8,450 | 6.3 | 15.7 | 11.4 | 6.5 | 11.4 | 9.1 |
* Total 2018 Abbott sales from continuing operations include Other Sales of $45 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. |
Third-quarter 2018 worldwide sales of $7.7 billion increased 12.1 percent on a reported basis. On an organic basis, worldwide sales increased 7.8 percent. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Nutrition | ||||||||||||||||||
($ in millions) | ||||||||||||||||||
% Change vs. 3Q17 | ||||||||||||||||||
Sales 3Q18 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 774 | 1,064 | 1,838 | 2.1 | 5.3 | 4.0 | 2.1 | 9.1 | 6.1 | |||||||||
Pediatric | 459 | 580 | 1,039 | 5.5 | 7.4 | 6.6 | 5.5 | 10.9 | 8.5 | |||||||||
Adult | 315 | 484 | 799 | (2.4) | 2.9 | 0.8 | (2.4) | 7.1 | 3.2 | |||||||||
% Change vs. 9M17 | ||||||||||||||||||
Sales 9M18 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 2,313 | 3,139 | 5,452 | 2.3 | 9.0 | 6.1 | 2.3 | 8.5 | 5.8 | |||||||||
Pediatric | 1,376 | 1,708 | 3,084 | 3.7 | 9.3 | 6.8 | 3.7 | 8.5 | 6.3 | |||||||||
Adult | 937 | 1,431 | 2,368 | 0.2 | 8.7 | 5.2 | 0.2 | 8.5 | 5.1 |
Worldwide Nutrition sales increased 4.0 percent on a reported basis in the third quarter, including an unfavorable 2.1 percent effect of foreign exchange, and increased 6.1 percent on an organic basis.
Worldwide Pediatric Nutrition sales increased 6.6 percent on a reported basis in the third quarter, including an unfavorable 1.9 percent effect of foreign exchange, and increased 8.5 percent on an organic basis. International pediatric sales increased 7.4 percent on a reported basis, including an unfavorable 3.5 percent effect of foreign exchange, and increased 10.9 percent on an organic basis. Strong performance in the quarter was led by above-market growth in the U.S. and double-digit growth in both Asia and Latin America.
Worldwide Adult Nutrition sales increased 0.8 percent on a reported basis in the third quarter, including an unfavorable 2.4 percent effect of foreign exchange, and increased 3.2 percent on an organic basis. International adult sales increased 2.9 percent on a reported basis, including an unfavorable 4.2 percent effect of foreign exchange, and increased 7.1 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. U.S. sales were negatively impacted by Abbott's wind down of a non-core product line.
Diagnostics | ||||||||||||||||||
($ in millions) | ||||||||||||||||||
% Change vs. 3Q17 | ||||||||||||||||||
Sales 3Q18 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 666 | 1,158 | 1,824 | 80.2 | 27.3 | 42.6 | 6.1 | 8.1 | 7.5 | |||||||||
Core Laboratory | 249 | 837 | 1,086 | 8.2 | 4.3 | 5.2 | 8.2 | 8.1 | 8.1 | |||||||||
Molecular | 37 | 84 | 121 | 2.3 | 5.8 | 4.7 | 2.3 | 7.9 | 6.1 | |||||||||
Point of Care | 106 | 30 | 136 | 2.7 | 7.4 | 3.7 | 2.7 | 8.6 | 4.0 | |||||||||
Rapid Diagnostics * | 274 | 207 | 481 | 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. 9M17 | ||||||||||||||||||
Sales 9M18 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 2,018 | 3,516 | 5,534 | 79.4 | 36.0 | 49.2 | 3.3 | 8.0 | 6.6 | |||||||||
Core Laboratory | 725 | 2,508 | 3,233 | 6.9 | 9.7 | 9.1 | 6.9 | 7.6 | 7.4 | |||||||||
Molecular | 114 | 247 | 361 | (6.8) | 12.9 | 5.8 | (6.8) | 10.9 | 4.5 | |||||||||
Point of Care | 324 | 92 | 416 | (0.3) | 13.8 | 2.5 | (0.3) | 12.1 | 2.2 | |||||||||
Rapid Diagnostics * | 855 | 669 | 1,524 | 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 42.6 percent on a reported basis in the third quarter. On an organic basis, sales increased 7.5 percent. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Core Laboratory Diagnostics sales increased 5.2 percent on a reported basis in the third quarter, including an unfavorable 2.9 percent effect of foreign exchange, and increased 8.1 percent on an organic basis, reflecting above-market growth in the U.S. and internationally.
Molecular Diagnostics sales increased 4.7 percent on a reported basis in the third quarter, including an unfavorable 1.4 percent effect of foreign exchange, and increased 6.1 percent on an organic basis. Worldwide sales were led by growth in infectious disease testing, Abbott's core area of focus in the molecular diagnostics market.
Point of Care Diagnostics sales increased 3.7 percent on a reported basis in the third quarter, including an unfavorable 0.3 percent effect of foreign exchange, and increased 4.0 percent on an organic basis, led by strong international growth of Abbott's i-STAT® handheld system.
Rapid Diagnostics worldwide sales of $481 million were led by cardiometabolic testing.
Established Pharmaceuticals | ||||||||||||||||||
($ in millions) | ||||||||||||||||||
% Change vs. 3Q17 | ||||||||||||||||||
Sales 3Q18 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | -- | 1,159 | 1,159 | n/a | (0.9) | (0.9) | n/a | 5.9 | 5.9 | |||||||||
Key Emerging Markets | -- | 866 | 866 | n/a | (2.1) | (2.1) | n/a | 6.8 | 6.8 | |||||||||
Other | -- | 293 | 293 | n/a | 2.8 | 2.8 | n/a | 3.1 | 3.1 | |||||||||
% Change vs. 9M17 | ||||||||||||||||||
Sales 9M18 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | -- | 3,332 | 3,332 | n/a | 6.1 | 6.1 | n/a | 8.3 | 8.3 | |||||||||
Key Emerging Markets | -- | 2,525 | 2,525 | n/a | 4.6 | 4.6 | n/a | 8.5 | 8.5 | |||||||||
Other | -- | 807 | 807 | n/a | 10.8 | 10.8 | n/a | 7.3 | 7.3 |
Established Pharmaceuticals sales decreased 0.9 percent on a reported basis in the third quarter, including an u
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