ABBOTT PARK, Ill., Jan. 23, 2013 /PRNewswire/ -- Abbott today announced financial results for the fourth quarter ended Dec. 31, 2012.
"In 2012, we achieved a significant milestone in Abbott's 125-year history with the creation of AbbVie while delivering another year of strong results," said Miles D. White, chairman and chief executive officer, Abbott. "Abbott's mix of diversified healthcare businesses and pipeline is favorably aligned with key healthcare and emerging market trends, and well positioned to deliver top-tier growth in 2013."
The following is a summary of Fourth-Quarter 2012 sales by major business category.
% Change vs. 4Q11 |
|||||||||||||||||||
Sales ($ in millions) 4Q12 |
Int'l |
Total |
|||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Operational |
Reported |
Operational |
Reported |
||||||||||||
Total Sales |
4,669 |
6,168 |
10,837 |
4.4 |
6.6 |
4.4 |
5.6 |
4.4 |
|||||||||||
Proprietary Pharmaceuticals |
3,020 |
2,122 |
5,142 |
7.6 |
9.6 |
7.0 |
8.5 |
7.4 |
|||||||||||
Nutritionals |
743 |
972 |
1,715 |
9.4 |
10.5 |
10.8 |
10.0 |
10.2 |
|||||||||||
Established Pharmaceuticals |
-- |
1,346 |
1,346 |
n/a |
0.6 |
(2.4) |
0.6 |
(2.4) |
|||||||||||
Core Laboratory Diagnostics |
174 |
734 |
908 |
(0.3) |
7.2 |
4.8 |
5.7 |
3.8 |
|||||||||||
Molecular Diagnostics |
59 |
72 |
131 |
(3.3) |
12.5 |
10.4 |
4.9 |
3.8 |
|||||||||||
Point of Care Diagnostics |
72 |
18 |
90 |
19.5 |
(1.0) |
(0.8) |
14.7 |
14.7 |
|||||||||||
Vasculara |
282 |
478 |
760 |
(24.6)a |
8.1 |
5.7 |
(6.8)a |
(8.1)a |
|||||||||||
Diabetes Care |
150 |
212 |
362 |
9.8 |
0.6 |
(1.2) |
4.2 |
3.1 |
|||||||||||
Medical Optics |
100 |
185 |
285 |
1.5 |
1.2 |
(1.3) |
1.4 |
(0.3) |
|||||||||||
Other Sales |
69 |
29 |
98 |
(14.7) |
4.4 |
2.3 |
(9.9) |
(10.4) |
|||||||||||
The following is a summary of Twelve-Month 2012 sales by major business category.
% Change vs. 12M11 |
|||||||||||||||||||
Sales ($ in millions) 12M12 |
Int'l |
Total |
|||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Operational |
Reported |
Operational |
Reported |
||||||||||||
Total Sales |
16,784 |
23,090 |
39,874 |
4.8 |
6.1 |
1.1 |
5.5 |
2.6 |
|||||||||||
Proprietary Pharmaceuticals |
10,158 |
7,854 |
18,012 |
7.4 |
8.9 |
3.0 |
8.2 |
5.5 |
|||||||||||
Nutritionals |
2,907 |
3,564 |
6,471 |
9.5 |
8.1 |
6.3 |
8.7 |
7.7 |
|||||||||||
Established Pharmaceuticals |
-- |
5,121 |
5,121 |
n/a |
2.1 |
(4.4) |
2.1 |
(4.4) |
|||||||||||
Core Laboratory Diagnostics |
685 |
2,814 |
3,499 |
7.3 |
6.9 |
2.5 |
7.0 |
3.4 |
|||||||||||
Molecular Diagnostics |
201 |
244 |
445 |
(2.3) |
8.3 |
3.0 |
3.3 |
0.5 |
|||||||||||
Point of Care Diagnostics |
274 |
74 |
348 |
18.1 |
8.9 |
7.6 |
16.0 |
15.7 |
|||||||||||
Vascularb |
1,226 |
1,845 |
3,071 |
(20.7)b |
7.6 |
3.3 |
(5.6)b |
(7.9)b |
|||||||||||
Diabetes Care |
568 |
759 |
1,327 |
4.4 |
(3.0) |
(7.5) |
(0.1) |
(2.8) |
|||||||||||
Medical Optics |
399 |
698 |
1,097 |
0.7 |
0.8 |
(2.4) |
0.8 |
(1.3) |
|||||||||||
Other Sales |
366 |
117 |
483 |
6.7 |
(5.0) |
(11.3) |
3.5 |
1.7 |
|||||||||||
Notes: |
1) |
See "Consolidated Statement of Earnings" for more information. |
2) |
"Operational" growth reflects percentage change over the prior year excluding the impact of exchange rates. |
|
a |
In the fourth quarter, excluding the expected decline of certain royalty and supply arrangement revenues (including Promus), worldwide operational sales increased 0.7 percent, worldwide reported sales decreased 0.9 percent, and U.S. sales decreased 11.7 percent. This decline in U.S. Vascular sales primarily relates to a decrease in XIENCE sales due to market dynamics and the comparison to 4Q11 when XIENCE PRIME was launched. |
|
b |
For the full year 2012, excluding the expected decline of certain royalty and supply arrangement revenues (including Promus), worldwide operational sales increased 3.4 percent, worldwide reported sales increased 0.7 percent, and U.S. Vascular sales decreased 3.9 percent. |
|
n/a = Not applicable |
The following is a summary of Fourth-Quarter 2012 sales for select products.
% Change vs. 4Q11 |
|||||||||||||||||
Sales ($ in millions) 4Q12 |
Int'l |
Total |
|||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Operational |
Reported |
Operational |
Reported |
||||||||||
HUMIRA |
1,413 |
1,268 |
2,681 |
31.1 |
17.9 |
15.2 |
24.5 |
23.1 |
|||||||||
TRILIPIX/TriCor (fenofibrate) |
202 |
67 |
269 |
(50.7) |
(3.7) |
(5.2) |
(43.7) |
(43.9) |
|||||||||
AndroGel |
364 |
9 |
373 |
40.5 |
7.5 |
10.1 |
39.5 |
39.6 |
|||||||||
Kaletra |
83 |
167 |
250 |
(17.0) |
(9.4) |
(11.4) |
(12.1) |
(13.4) |
|||||||||
Lupron |
155 |
56 |
211 |
11.3 |
(17.4) |
(18.1) |
1.8 |
1.6 |
|||||||||
Niaspan |
277 |
-- |
277 |
7.4 |
n/a |
n/a |
7.4 |
7.4 |
|||||||||
Synthroid |
168 |
26 |
194 |
24.9 |
7.5 |
3.4 |
22.2 |
21.5 |
|||||||||
Creon |
105 |
83 |
188 |
3.9 |
13.8 |
11.8 |
8.0 |
7.2 |
|||||||||
Pediatric Nutritionals |
366 |
581 |
947 |
8.5 |
14.1 |
15.0 |
11.9 |
12.4 |
|||||||||
Adult Nutritionals |
377 |
391 |
768 |
11.5 |
5.6 |
5.2 |
8.4 |
8.2 |
|||||||||
Xience Drug-Eluting Stentsc |
128 |
272 |
400 |
(15.3) |
12.6 |
10.3 |
2.0 |
0.5 |
|||||||||
Other Coronary Productsd |
49 |
101 |
150 |
(2.7) |
3.0 |
0.1 |
1.0 |
(0.9) |
|||||||||
Endovasculare |
59 |
55 |
114 |
(3.2) |
11.6 |
9.6 |
3.5 |
2.6 |
|||||||||
The following is a summary of Twelve-Month 2012 sales for select products.
% Change vs. 12M11 |
|||||||||||||||||
Sales ($ in millions) 12M12 |
Int'l |
Total |
|||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Operational |
Reported |
Operational |
Reported |
||||||||||
HUMIRA |
4,376 |
4,889 |
9,265 |
27.7 |
15.4 |
8.5 |
20.7 |
16.8 |
|||||||||
TRILIPIX/TriCor (fenofibrate) |
1,098 |
292 |
1,390 |
(19.9) |
1.3 |
(5.2) |
(16.0) |
(17.2) |
|||||||||
AndroGel |
1,152 |
33 |
1,185 |
31.7 |
6.7 |
4.9 |
30.9 |
30.8 |
|||||||||
Kaletra |
280 |
733 |
1,013 |
(14.1) |
(7.6) |
(13.2) |
(9.4) |
(13.4) |
|||||||||
Lupron |
569 |
231 |
800 |
5.4 |
(10.5) |
(14.4) |
0.1 |
(1.2) |
|||||||||
Niaspan |
911 |
-- |
911 |
(6.7) |
n/a |
n/a |
(6.7) |
(6.7) |
|||||||||
Synthroid |
551 |
105 |
656 |
5.7 |
10.0 |
1.5 |
6.4 |
5.0 |
|||||||||
Creon |
353 |
306 |
659 |
6.5 |
10.6 |
3.5 |
8.4 |
5.1 |
|||||||||
Pediatric Nutritionals |
1,445 |
2,080 |
3,525 |
14.0 |
9.1 |
8.0 |
11.1 |
10.4 |
|||||||||
Adult Nutritionals |
1,452 |
1,484 |
2,936 |
6.1 |
6.6 |
4.0 |
6.3 |
5.0 |
|||||||||
Xience Drug-Eluting Stentsc |
555 |
1,044 |
1,599 |
(1.1) |
8.5 |
4.8 |
5.1 |
2.7 |
|||||||||
Other Coronary Productsd |
196 |
402 |
598 |
(2.5) |
4.1 |
(0.6) |
1.9 |
(1.2) |
|||||||||
Endovasculare |
241 |
211 |
452 |
(1.9) |
9.0 |
3.4 |
3.0 |
0.5 |
|||||||||
Notes: |
1) |
See "Consolidated Statement of Earnings" for more information. |
2) |
"Operational" growth reflects percentage change over the prior year excluding the impact of exchange rates. |
|
c |
International sales include Abbott's Absorb bioresorbable vascular scaffold (BVS). |
|
d |
Includes guide wires, balloon catheters and other coronary products. |
|
e |
Includes vessel closure, carotid stents and other peripheral products. |
|
n/a = Not applicable |
Diversified Healthcare Products Business Highlights
Initiated Clinical Trial of Absorb Bioresorbable Vascular Scaffold (BVS) in the United States
Announced the initiation of the ABSORB III clinical trial in patients in the U.S. The trial is designed to enroll approximately 2,250 patients and will compare the performance of Abbott's Absorb BVS, a first-of-its kind device for the treatment of coronary artery disease, to the company's XIENCE™ family of drug eluting stents. Data from the ABSORB III trial will support U.S. regulatory filings for Absorb.
Announced FDA Approval and U.S. Launch of XIENCE Xpedition
Announced the U.S. launch of the XIENCE Xpedition Drug Eluting Stent System, providing physicians a next-generation technology with the largest size matrix in the U.S. market. XIENCE Xpedition features a new stent delivery system designed to optimize deliverability, particularly in challenging coronary anatomies. XIENCE Xpedition is also available in Europe and other international markets.
Received Approval for Two New Diagnostic Tests
Announced clearance from the U.S. Food and Drug Administration for ARCHITECT 2nd Generation Testosterone Assay, a more sensitive, accurate and precise test, that allows physicians to obtain more reliable measurements of testosterone in both men and women. In addition, received CE Marking for the ARCHITECT STAT High Sensitive Troponin-I Assay, which may help clinicians reduce time in diagnosing heart attacks and assist in determining risk for those who may have future heart attacks.
Introduced Ensure Complete Shakes for Adults
Introduced in the U.S. Ensure Complete™, a nutritional shake that provides targeted muscle, heart, immune system, and bone support to help meet adults' daily dietary needs. Ensure Complete shakes are suitable for gluten-free and lactose intolerant diets. Ensure Complete shakes feature Abbott's proprietary ingredient, Revigor®, and 13 grams of protein to help protect, preserve and promote muscle health.
Received Approval for ALK Test as a Companion Diagnostic in Europe
Announced expansion of the current CE-IVD product labeling for Abbott's Vysis® ALK Break Apart FISH Probe Kit, allowing the test to be marketed in the European Union as a companion diagnostic. The test is designed to detect rearrangements of the ALK gene in advanced non-small cell lung cancer patients who may be eligible for treatment with XALKORI® (crizotinib), Pfizer's ALK inhibitor.
Proprietary Pharmaceuticals Business Highlights
Presented Data from the Phase 2b Aviator Study in Hepatitis C
Presented the full results from the Phase 2b Aviator study of AbbVie's investigational all-oral interferon-free regimen for the treatment of hepatitis C (HCV). Data showed sustained virological response at 12 weeks post treatment (SVR12) in 98 percent of treatment-naive and 93 percent of null responders (intent to treat) for genotype 1 (GT1) patients taking a combination of ABT-450/r, ABT-267, ABT-333 and ribavirin.
Initiated Phase 3 Hepatitis C Registrational Program
Announced details of the Phase 3 clinical trials designed to evaluate safety and efficacy of a 12-week regimen of three direct-acting antivirals, with and without ribavirin, for the treatment of HCV in GT1 patients. The Phase 3 program, which is currently open for enrollment, will include more than 2,000 patients with HCV GT1, with trial sites in 29 countries.
Received Approval for Ninth HUMIRA Indication in Europe
Announced approval of HUMIRA® in Europe for the treatment of pediatric patients with severe active Crohn's disease. With this approval, HUMIRA becomes the first biologic treatment approved for these patients in more than five years. This marks the ninth indication for HUMIRA in the European Union.
Abbott issues ongoing earnings-per-share outlook for 2013
Abbott is issuing ongoing earnings-per-share guidance for the full-year 2013 of $1.98 to $2.04.
Abbott forecasts net specified items for the full-year 2013 of approximately $0.59 per share, primarily associated with intangible amortization expense, separation costs and cost-reduction initiatives. Including these net specified items, projected earnings per share under Generally Accepted Accounting Principles (GAAP) would be $1.39 to $1.45 for the full-year 2013.
Abbott declares 356th quarterly dividend
On Dec. 14, 2012, the board of directors of Abbott declared the company's quarterly common dividend of $0.14 per share. Abbott's cash dividend is payable Feb. 15, 2013, to shareholders of record at the close of business on Jan. 15, 2013. On Jan. 4, 2013, the board of directors of AbbVie declared the company's quarterly cash dividend of $0.40 per share. AbbVie's cash dividend is also payable on Feb. 15, 2013, to shareholders of record at the close of business on Jan. 15, 2013.
Abbott's annualized cash dividend of $0.56 per share, combined with AbbVie's annualized cash dividend of $1.60 per share, equals a total annualized cash dividend of $2.16 per share, compared to the annualized cash dividend of Abbott, prior to separation, of $2.04 per share. Future quarterly dividends are subject to approval by each company's board of directors.
About Abbott
Abbott (NYSE: ABT) is a global healthcare company devoted to improving life through the development of products and technologies that span the breadth of healthcare. With a portfolio of leading, science-based offerings in diagnostics, medical devices, nutritionals and branded generic pharmaceuticals, Abbott serves people in more than 150 countries and employs approximately 70,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at @AbbottNews.
Abbott will webcast its live fourth-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the call will be available after 11 a.m. Central time.
— Private Securities Litigation Reform Act of 1995 —
A Caution Concerning Forward-Looking Statements
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995, including Abbott's expected financial results after the separation of its research-based pharmaceutical business. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors," to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2011, and in Item 1A, "Risk Factors," to our quarterly reports filed on Securities and Exchange Commission Form 10-Q for the quarters ended September 30, 2012 and June 30, 2012, and are incorporated by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
Abbott Laboratories and Subsidiaries Consolidated Statement of Earnings Fourth Quarter Ended December 31, 2012 and 2011 (in millions, except per share data) (unaudited) |
||||||
2012 |
2011 |
% Change |
||||
Net Sales |
$10,837 |
$10,377 |
4.4 |
|||
Cost of products sold |
4,060 |
3,838 |
5.8 |
|||
Research and development |
1,141 |
1,152 |
(0.9) |
|||
Acquired in-process and collaborations research and development |
28 |
400 |
n/m |
|||
Selling, general and administrative |
3,193 |
2,905 |
9.9 |
|||
Total Operating Cost and Expenses |
8,422 |
8,295 |
1.5 |
|||
Operating earnings |
2,415 |
2,082 |
16.0 |
|||
Net interest expense |
163 |
102 |
59.6 |
|||
Loss on extinguishment of debt |
1,351 |
-- |
n/m |
1) |
||
Net foreign exchange (gain) loss |
(12) |
(2) |
n/m |
|||
Other (income) expense, net |
39 |
28 |
38.7 |
|||
Earnings before taxes |
874 |
1,954 |
(55.3) |
|||
Taxes on earnings |
(179) |
335 |
n/m |
|||
Net Earnings |
$1,053 |
$1,619 |
(34.9) |
|||
Net Earnings Excluding Specified Items, as described below |
$2,421 |
$2,295 |
5.5 |
2) |
||
Diluted Earnings per Common Share |
$0.66 |
$1.02 |
(35.3) |
|||
Diluted Earnings per Common Share, Excluding Specified Items, as described below |
$1.51 |
$1.45 |
4.1 |
2) |
||
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options and Awards |
1,596 |
1,577 |
1) |
Loss on extinguishment of debt are expenses associated with the early payment of long-term debt as previously discussed. |
2) |
2012 Net Earnings Excluding Specified Items excludes after-tax charges of $858 million, or $0.54 per share, for loss on extinguishment of debt, $265 million, or $0.16 per share, for separation costs, $97 million, or $0.06 per share, for asset impairments, $122 million, or $0.07 per share, for restructuring, integration costs and other and $26 million, or $0.02 per share, for acquired in-process research and development. |
2011 Net Earnings Excluding Specified Items excludes after-tax charges of $400 million, or $0.25 per share, relating to acquired in-process research and development related to the Reata collaboration, $124 million, or $0.08 per share, associated with the acquisition of Solvay Pharmaceuticals, and $152 million, or $0.10 per share, for other restructuring and integration charges. |
|
NOTE: See attached questions and answers section for further explanation of Consolidated Statement of Earnings line items. |
|
n/m = Percent change is not meaningful. |
Abbott Laboratories and Subsidiaries Consolidated Statement of Earnings Twelve Months Ended December 31, 2012 and 2011 (in millions, except per share data) (unaudited) |
||||||
2012 |
2011 |
% Change |
||||
Net Sales |
$39,874 |
$38,851 |
2.6 |
|||
Cost of products sold |
15,120 |
15,541 |
(2.7) |
1) |
||
Research and development |
4,322 |
4,129 |
4.7 |
|||
Acquired in-process and collaborations research and development |
288 |
673 |
n/m |
|||
Selling, general and administrative |
12,059 |
12,756 |
(5.5) |
2) |
||
Total Operating Cost and Expenses |
31,789 |
33,099 |
(4.0) |
|||
Operating earnings |
8,085 |
5,752 |
40.6 |
|||
Net interest expense |
513 |
445 |
15.3 |
|||
Loss on extinguishment of debt |
1,351 |
-- |
n/m |
3) |
||
Net foreign exchange (gain) loss |
(8) |
(50) |
n/m |
|||
Other (income) expense, net |
(34) |
158 |
n/m |
4) |
||
Earnings before taxes |
6,263 |
5,199 |
20.5 |
|||
Taxes on earnings |
300 |
470 |
(36.3) |
5) |
||
Net Earnings |
$5,963 |
$4,729 |
26.1 |
|||
Net Earnings Excluding Specified Items, as described below |
$8,119 |
$7,331 |
10.7 |
6) |
||
Diluted Earnings per Common Share |
$3.72 |
$3.01 |
23.6 |
|||
Diluted Earnings per Common Share, Excluding Specified Items, as described below |
$5.07 |
$4.66 |
8.8 |
6) |
||
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options and Awards |
1,592 |
1,567 |
1) |
2012 Cost of products sold decline was due in part to foreign exchange rates. |
2) |
2011 Selling, general and administrative expense includes $1.5 billion of litigation reserves related to previously disclosed litigation. |
3) |
Loss on extinguishment of debt are expenses associated with the early payment of long-term debt. |
4) |
Other (income) expense, net for 2011 includes a charge of $137 million for the impact of Abbott's change to a calendar year end for the international operations that were previously reported on a November 30 year-end. |
5) |
2012 Taxes on earnings includes a favorable adjustment to tax expense of $408 million, or $0.26 per share, as a result of the resolution of various tax positions from a previous year. 2011 Taxes on earnings includes a favorable adjustment to tax expense of $580 million, or $0.37 per share, as a result of the resolution of various international and U.S. tax positions from prior years. These favorable items are classified as specified items and excluded from ongoing results, as discussed below. |
6) |
2012 Net Earnings Excluding Specified Items excludes after-tax charges of $858 million, or $0.54 per share, for loss on extinguishment of debt, $573 million, or $0.36 per share, for restructuring, $485 million, or $0.30 per share, for separation costs, $325 million, or $0.21 per share, for acquired in-process R&D and R&D milestone payments, $115 million, or $0.07 per share, related to litigation reserves, $112 million, or $0.07 per share, for integration-related expenses and $96 million, or $0.06 per share, for asset impairments. These items were partially offset by a favorable adjustment from the resolution of a prior year's tax positions for $408 million, or $0.26 per share. |
2011 Net Earnings Excluding Specified Items excludes after-tax charges of $1.454 billion, or $0.92 per share, related to litigation reserves, $673 million, or $0.43 per share, relating to acquired in-process research and development related to the Reata and Biotest collaborations, $341 million, or $0.22 per share, associated with the acquisition of Solvay Pharmaceuticals, $76 million, or $0.05 per share, for the impairment of an R&D intangible asset, $137 million, or $0.09 per share, for the 2009 and 2010 impact of the change to a calendar year end for international operations, $110 million, or $0.07 per share, for restructuring in the pharmaceutical business, $311 million, or $0.19 per share, for cost reduction initiatives and other, and $80 million, or $0.05 per share, for other litigation reserves. These items were partially offset by a favorable adjustment from the resolution of prior years' international and U.S. tax positions for $580 million, or $0.37 per share. |
|
n/m = Percent change is not meaningful. |
Questions & Answers
Q1) What were sources of sales growth in the quarter?
A1) Excluding foreign exchange, worldwide sales increased 5.6 percent. Reported sales increased 4.4 percent, including an unfavorable 1.2 percent effect of foreign exchange. In emerging markets, sales increased more than 10 percent, excluding foreign exchange, with strong double-digit growth in many of the key emerging markets across Abbott's businesses.
Worldwide Nutrition sales increased 10.0 percent in the quarter, excluding a favorable 0.2 percent effect of foreign exchange. This was driven by strong growth across the U.S. and International Nutrition businesses, increasing 9.4 percent and 10.5 percent (excluding foreign exchange), respectively, driven by growth of key products, including Similac®, PediaSure®, Ensure® and Glucerna®, as well as emerging market growth. Sales in emerging markets represent more than 40 percent of total Nutrition sales and increased double digits. Global sales of Core Laboratory Diagnostics increased 5.7 percent, excluding an unfavorable 1.9 percent effect of foreign exchange, driven by 7.2 percent international growth, excluding an unfavorable 2.4 percent effect of foreign exchange, with strong growth in key emerging markets, such as China, Russia and Brazil. Point of Care Diagnostics also contributed to strong sales growth, increasing double digits in the quarter.
Worldwide Proprietary Pharmaceuticals sales increased 8.5 percent, excluding an unfavorable 1.1 percent effect of foreign exchange, driven by strong growth in key franchises including HUMIRA worldwide and AndroGel® in the U.S., partially offset by the impact of Tricor® generic competition in the U.S.
Q2) How did specified items affect reported results?
A2) Specified items impacted fourth-quarter results as follows:
4Q12 |
|||
(dollars in millions, except earnings-per-share) |
Earnings |
||
Pre-tax |
After-tax |
EPS |
|
As reported (GAAP) |
$874 |
$1,053 |
$0.66 |
Adjusted for specified items: |
|||
Loss on extinguishment of debt |
$1,351 |
$858 |
$0.54 |
Separation costs |
$282 |
$265 |
$0.16 |
Asset impairments |
$119 |
$97 |
$0.06 |
Acquired IPR&D |
$28 |
$26 |
$0.02 |
Restructuring/Integration/Other |
$171 |
$122 |
$0.07 |
As adjusted |
$2,825 |
$2,421 |
$1.51 |
Loss on extinguishment of debt relates to the payment of long-term debt as discussed previously. Separation costs are expenses related to the separation of AbbVie. Asset impairments relate to the write down of certain acquired research and development assets and equity investments. Acquired IPR&D relates to a previously announced Proprietary Pharmaceuticals collaboration. Restructuring/Integration/Other is associated primarily with previously announced restructuring actions across the businesses. The impact of the specified items by line item is as follows (dollars in millions):
4Q12 |
|||||||||
Cost of Products Sold |
R&D |
Acquired IPR&D |
SG&A |
Net Interest Expense |
Loss on |
Other (Income)/ Expense |
|||
As reported (GAAP) |
$4,060 |
$1,141 |
$28 |
$3,193 |
$163 |
$1,351 |
$39 |
||
Adjusted for specified items: |
|||||||||
Loss on extinguishment of debt |
-- |
-- |
-- |
-- |
-- |
($1,351) |
-- |
||
Separation costs |
($6) |
($8) |
-- |
($212) |
($56) |
-- |
-- |
||
Asset impairments |
-- |
($58) |
-- |
-- |
-- |
-- |
($61) |
||
Acquired IPR&D |
-- |
-- |
($28) |
-- |
-- |
-- |
-- |
||
Restructuring/Integration/Other |
($75) |
($45) |
-- |
($47) |
-- |
-- |
($4) |
||
As adjusted |
$3,979 |
$1,030 |
-- |
$2,934 |
$107 |
-- |
($26) |
||
Q3) What was the gross margin ratio in the quarter?
A3) The gross margin ratio before and after specified items is shown below (dollars in millions):
4Q12 |
|||
Cost of Products Sold |
Gross Margin |
Gross Margin % |
|
As reported (GAAP) |
$4,060 |
$6,777 |
62.5% |
Adjusted for specified items: |
|||
Restructuring/Integration/Other |
($81) |
$81 |
0.8% |
As adjusted |
$3,979 |
$6,858 |
63.3% |
The adjusted gross margin ratio was 63.3 percent in the fourth quarter, a decrease of 50 basis points from the prior year quarter due to the negative impact of foreign exchange of 130 basis points.
Q4) What was the tax rate?
A4) The ongoing tax rate for the full year was 14.8 percent, in line with previous guidance, as detailed below (dollars in millions):
12M12 |
|||
Pre-Tax |
Taxes on |
Tax |
|
Income |
Earnings |
Rate |
|
As reported (GAAP) |
$6,263 |
$300 |
4.8% |
Specified items |
$3,266 |
$1,110 |
34.0% |
Excluding specified items |
$9,529 |
$1,410 |
14.8% |
The ongoing tax rate for the fourth quarter was 14.3 percent, as detailed below.
4Q12 |
|||
Pre-Tax |
Taxes on |
Tax |
|
Income |
Earnings |
Rate |
|
As reported (GAAP) |
$874 |
($179) |
(20.5%) |
Specified items |
$1,951 |
$583 |
29.9% |
Excluding specified items |
$2,825 |
$404 |
14.3% |
Q5) What are the key areas of focus in Abbott's diversified medical products pipeline?
A5) Abbott's diversified medical products pipeline includes revolutionary medical technologies, next-generation diagnostic systems, new formulations, new packaging, new flavors and other brand enhancements. Following are highlights:
SOURCE Abbott