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Abbott Reports Double-Digit Ongoing Earnings-Per-Share Growth in First Quarter; Raises Full-Year 2012 Outlook

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Abbott Reports Double-Digit Ongoing Earnings-Per-Share Growth in First Quarter; Raises Full-Year 2012 Outlook

-- First Quarter Ongoing EPS of $1.03, Up 13.2 Percent --

-- Raises Ongoing EPS Outlook for Full-Year 2012 --

-- On Track to Separate into Two Leading Health Care Companies by Year End --

PR Newswire

ABBOTT PARK, Ill., April 18, 2012 /PRNewswire/ -- Abbott (NYSE: ABT) 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."

The following is a summary of first-quarter 2012 sales by major business category.










% Change vs. 1Q11


Sales ($ in millions)




Int'l



Total



U.S.


Int'l


Total



U.S.


Operational


Reported


Operational


Reported





















Total Sales                    

3,722


5,735


9,457



5.8


5.9


3.8



5.9


4.6





















Proprietary Pharmaceuticals

2,053


2,019


4,072



6.6


10.2


7.7



8.3


7.1





















Nutritionals

707


859


1,566



11.0


9.9


9.3



10.4


10.1





















Established Pharmaceuticals

--


1,257


1,257



n/a


1.9


(1.6)



1.9


(1.6)













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