SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 16, 2001
Date of Report (Date of earliest event reported)
ABBOTT LABORATORIES
(Exact name of registrant as specified in its charter)
Illinois | 1-2189 | 36-0698440 |
(State or other | (Commission File Number) | (I.R.S. Employer |
Jurisdiction of Incorporation) | Identification No.) |
100 Abbott Park Road
Abbott Park, Illinois 60064-6400
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (847) 937-6100
Item 5. Other Events
Attached as Exhibit 99.1 and incorporated herein by this reference is a press release announcing Abbott's sales and earnings for the fourth-quarter and year 2000.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. |
Exhibit |
|
---|---|---|
99.1 | Press Release, dated January 16, 2001 |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
ABBOTT LABORATORIES | ||||
By: |
/s/ GARY P. COUGHLAN |
|||
Gary P. Coughlan Senior Vice President, Finance and Chief Financial Officer |
Date: January 18, 2001
For Immediate Release
Abbott reports increases in sales, earnings for fourth-quarter 2000;
sales rise 6.8 percent to $3.7 billion
ABBOTT PARK, Ill., Jan. 16, 2001 Abbott Laboratories today reported increases in sales and earnings for both the fourth quarter and year ended Dec. 31, 2000. Worldwide sales for the fourth quarter were $3.705 billion, up 6.8 percent from $3.468 billion in the fourth quarter of 1999. Total sales were unfavorably impacted 3.3 percent due to the effect of the relatively stronger U.S. dollar. Without the impact of exchange, total sales would have increased by 10.1 percent. Diluted earnings per share for the quarter rose to 48 cents, up 11.6 percent from 43 cents a year ago. Net earnings increased 13.5 percent to $753 million, from $664 million in the fourth quarter of 1999. For the fourth quarter, research and development (R&D) expense was $350 million.
The following is a summary of Abbott's fourth-quarter 2000 sales for its major business segments:
Sales Summary Fourth Quarter 2000 |
4Q00 ($ millions) |
Percent Change vs. 4Q99 |
Percent Change vs. 4Q99 Without Impact of Exchange |
|||||
---|---|---|---|---|---|---|---|---|
Total Sales | $ | 3,705 | 6.8 | 10.1 | ||||
U.S. Pharmaceutical Sales | $ | 761 | 14.4 | | ||||
TAP Pharmaceutical Products Sales* (not consolidated in Abbott's sales) |
$ | 955 | 18.2 | | ||||
U.S. Hospital Products Sales | $ | 678 | 16.0 | | ||||
International Sales | $ | 853 | 1.3 | 9.4 | ||||
International Pharmaceuticals | $ | 390 | 2.1 | 12.0 | ||||
International Hospital Products | $ | 188 | (2.4 | ) | 6.3 | |||
International Nutritionals | $ | 275 | 2.6 | 7.6 | ||||
Ross Products (U.S.) Sales | $ | 493 | 1.1 | | ||||
Worldwide Diagnostics Sales | $ | 752 | (6.4 | ) | (0.5 | ) |
Note: See page 13 for complete "Consolidated Statement of Earnings."
The following is a summary of Abbott's 2000 sales for its major business segments:
Sales Summary Year Ended 12/31/00 |
Year Ended 12/31/00 ($ millions) |
Percent Change vs. 1999 |
Percent Change vs. 1999 Without Impact of Exchange |
||||
---|---|---|---|---|---|---|---|
Total Sales | $ | 13,746 | 4.3 | 6.3 | |||
U.S. Pharmaceuticals Sales | $ | 2,580 | 7.6 | | |||
TAP Pharmaceutical Products Sales* (not consolidated in Abbott's sales) |
$ | 3,539 | 20.9 | | |||
U.S. Hospital Products Sales | $ | 2,507 | 11.5 | | |||
International Sales | $ | 3,307 | 3.2 | 8.0 | |||
International Pharmaceuticals | $ | 1,482 | (0.2 | ) | 5.5 | ||
International Hospital Products | $ | 754 | 2.6 | 8.5 | |||
International Nutritionals | $ | 1,071 | 8.8 | 11.6 | |||
Ross Products (U.S.) Sales | $ | 2,035 | 4.0 | | |||
Worldwide Diagnostics Sales | $ | 2,924 | (2.9 | ) | 0.8 |
Note: See page 14 for complete "Consolidated Statement of Earnings."
Total sales in U.S. markets were $2.370 billion, up 12.6 percent from $2.105 billion in the fourth quarter of 1999. Total international sales, including direct exports from the United States, were $1.335 billion, a 2.0 percent decrease from $1.363 billion recorded a year ago. International sales were unfavorably impacted 8.4 percent due to the effect of the relatively stronger U.S. dollar. Without the impact of exchange, international sales would have increased by 6.4 percent.
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2000 results
Worldwide sales in 2000 increased to $13.746 billion, up 4.3 percent from $13.178 billion a year ago. Total sales were unfavorably impacted 2.0 percent due to the effect of the relatively stronger U.S. dollar. Without the impact of exchange, total sales would have increased by 6.3 percent.
For the year 2000, diluted earnings per share rose 13.4 percent to $1.78 from $1.57 a year earlier. Net earnings rose to $2.786 billion, an increase of 13.9 percent from $2.446 billion a year ago. Total sales in U.S. markets were $8.590 billion, up 6.1 percent from $8.099 billion in 1999. Total international sales, including direct exports from the United States, were $5.156 billion, a 1.5 percent increase from $5.079 billion recorded a year ago. International sales were unfavorably impacted 5.2 percent due to the effect of the relatively stronger U.S. dollar. Without the impact of exchange, international sales would have increased by 6.7 percent.
For 2000, R&D expense increased 13.2 percent over 1999.
"During 2000, the contributions of Abbott people throughout the world were exceptional," said Miles D. White, chairman and chief executive officer. "Our people developed several unique products, such as Kaletra and Sof-Tact, that will make a significant difference in the lives of the patients we serve. The company delivered financial performance in line with its commitments, despite a challenging foreign exchange environment. Abbott also accomplished a number of objectives important for long-term success. We strengthened our scientific focus through increased investment and alignment of all scientific programs under a new chief scientific officer. Finally, the acquisition of Knoll will enhance Abbott's global pharmaceutical business and greatly expand our technical and financial capabilities in the scientific arena."
Review of 2000 business activities
Pharmaceutical Products
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The CPMP opinion will be considered by the European Commission, which will make the final decision regarding marketing authorization, a process that takes approximately 90 days.
Hospital Products
Nutritionals
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sterility required of infant formula, this innovative, award-winning packaging makes formula feeding even easier for parents.
Diagnostics
Corporate
Abbott Laboratories is a global, diversified health care company devoted to the discovery, development, manufacture and marketing of pharmaceutical, diagnostic, nutritional and hospital products. The company employs 60,000 people and markets its products in more than 130 countries. In 2000, the company's sales and net earnings were $13.7 billion and $2.8 billion, respectively, with diluted earnings per share of $1.78.
Abbott's news releases and other information are available on the company's Website at www.abbott.com. Abbott will webcast its live fourth-quarter/year-end earnings conference call through its Web site at www.abbottinvestor.com at 9 a.m. today, Central time. An archived edition of the call will be available after 1 p.m., Central time.
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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. 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 Exhibit 99.1 of our 1999 Form 10-K and in our periodic reports on Form 10-Q and Form 8-K, and are incorporated by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as the result of subsequent events or developments.
Media Contact: | Financial Analyst Contract: |
Christy Beckmann | John Thomas |
(847) 938-9725 | (847) 938-2655 |
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Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Fourth Quarter Ended December 31, 2000 and 1999
|
Fourth Quarter |
||||||||
---|---|---|---|---|---|---|---|---|---|
|
2000 |
1999 |
Percent Change |
||||||
Net Sales | $ | 3,704,690,000 | $ | 3,467,936,000 | 6.8 | ||||
Cost of products sold | 1,696,440,000 | 1,518,823,000 | 11.7 | ||||||
Research & development | 349,682,000 | 327,852,000 | 6.7 | ||||||
Selling, general & administrative | 735,646,000 | 788,138,000 | (6.7 | ) | |||||
Total Operating Cost & Expenses | 2,781,768,000 | 2,634,813,000 | 5.6 | ||||||
Operating Earnings | 922,922,000 | 833,123,000 | 10.8 | ||||||
Net interest (income)/expense | (782,000 | ) | 15,043,000 | | |||||
Net foreign exchange (gain)/loss | 3,962,000 | 4,316,000 | (8.2 | ) | |||||
(Income) from TAP Pharmaceutical Products Inc. joint venture (a) | (108,147,000 | ) | (112,322,000 | ) | (3.7 | ) | |||
Other (income)/expense, net | (4,164,000 | ) | 3,861,000 | | |||||
Earnings Before Taxes | 1,032,053,000 | 922,225,000 | 11.9 | ||||||
Taxes on earnings | 278,654,000 | 258,223,000 | 7.9 | ||||||
Net Earnings | $ | 753,399,000 | $ | 664,002,000 | 13.5 | ||||
Basic Earnings Per Common Share |
$ | 0.49 | $ | 0.43 | 14.0 | ||||
Diluted Earnings Per Common Share |
$ | 0.48 | $ | 0.43 | 11.6 | ||||
Average Number of Common Shares Outstanding | |||||||||
Used for Basic Earnings Per Common Share | 1,546,270,000 | 1,542,004,000 | |||||||
Average Number of Common Shares Outstanding | |||||||||
Plus Dilutive Common Stock Options | 1,569,999,000 | 1,557,343,000 | |||||||
Tax Rate | 27.0 | % | 28.0 | % |
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Abbott Laboratories and Subsidiaries
Consolidated Statement of Earnings
Twelve Months Ended December 31, 2000 and 1999
|
Twelve Months Ended December 31 |
||||||||
---|---|---|---|---|---|---|---|---|---|
|
2000 |
1999 |
Percent Change |
||||||
Net Sales | $ | 13,745,916,000 | $ | 13,177,625,000 | 4.3 | ||||
Cost of products sold | 6,238,646,000 | 5,977,183,000 | 4.4 | ||||||
Research & development | 1,351,024,000 | 1,193,963,000 | 13.2 | ||||||
Selling, general & administrative | 2,894,178,000 | 2,857,104,000 | 1.3 | ||||||
(Gain) on sale of business | (138,507,000 | ) | | | |||||
Total Operating Cost & Expenses | 10,345,341,000 | 10,028,250,000 | 3.2 | ||||||
Operating Earnings | 3,400,575,000 | 3,149,375,000 | 8.0 | ||||||
Net interest (income)/expense | 23,221,000 | 81,765,000 | (71.6 | ) | |||||
Net foreign exchange (gain)/loss | 7,287,000 | 26,238,000 | (72.2 | ) | |||||
(Income) from TAP Pharmaceutical Products Inc. joint venture (a) |
(481,340,000 | ) | (390,152,000 | ) | 23.4 | ||||
Other (income)/expense, net | 35,000,000 | 34,636,000 | 1.1 | ||||||
Earnings Before Taxes | 3,816,407,000 | 3,396,888,000 | 12.4 | ||||||
Taxes on earnings | 1,030,430,000 | 951,129,000 | 8.3 | ||||||
Net Earnings | $ | 2,785,977,000 | $ | 2,445,759,000 | 13.9 | ||||
Basic Earnings Per Common Share | $ | 1.80 | $ | 1.59 | 13.2 | ||||
Diluted Earnings Per Common Share | $ | 1.78 | $ | 1.57 | 13.4 | ||||
Average Number of Common Shares Outstanding | |||||||||
Used for Basic Earnings Per Common Share | 1,548,015,000 | 1,536,762,000 | |||||||
Average Number of Common Shares Outstanding | |||||||||
Plus Dilutive Common Stock Options | 1,565,579,000 | 1,557,655,000 | |||||||
Tax Rate | 27.0 | % | 28.0 | % |
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